What are annuities and are they right for me?

Retirement planning often comes down to a few key goals — growing your savings, protecting what you’ve built and creating income you can rely on. As part of a broader retirement strategy, annuities can help address one or more of those needs.

What is an annuity?

An annuity is a contract between you and an insurance company designed to help you accumulate retirement assets or create a stream of income. There are many types of annuities available, including fixed and fixed index annuities.

What are the advantages of annuities?

Depending on the type of annuity you choose, it may offer tax-deferred growth, protection from market losses, flexible withdrawal features and options for guaranteed income that can last for a set period or for life. Some even offer long-term care benefits designed to help cover qualified care expenses if you need them later in life.

Simply put, annuities are the only vehicle that can provide a guaranteed stream of income for your lifetime.

Fixed vs. fixed index annuities

Fixed annuities offer a guaranteed interest rate or immediate payments for a specified period, providing predictability without exposure to market downturns.

Fixed index annuities offer growth potential tied to the performance of a selected index, while protecting your contract value from losses caused by market declines. Your money is not directly invested in the market.

Both can play a role in retirement planning, but the right fit depends on your goals, timeline and income needs.

Is an annuity right for me?

An annuity may be worth considering if you want to protect a portion of your retirement savings, create a predictable source of income or add tax-deferred growth potential to your strategy.

No product is a one-size-fits-all. Features, benefits, liquidity and income options can vary. Talk with your financial professional to determine which type of annuity may complement your overall retirement strategy. support your retirement strategy by offering growth potential, protection from market losses and a guaranteed source of income that you can’t outlive. Some options may also include benefits designed to help address long-term care needs, giving you added flexibility as you plan for the years ahead.