Protect Your Retirement with Annuity Income
Running out of income is one of the top concerns when planning for retirement. However, it is possible to plan for a lifetime of income. When you are nearing retirement, an income annuity allows you to convert part of your retirement earnings into guaranteed income*. Also, planning for retirement means finding the right balance between risk and reward, preserving your money, and growing it. Therefore, an FIA may be a good option to protect your annuity income.
Key Benefits of an FIA
- Guaranteed* lifetime income by protecting against the risk of outliving your earnings.
- Provide tax-deferred interest growth
- Contributions are unlimited
- Ensures protection against market losses
- Interest earned based on the performance of the index
- Protection for your beneficiaries
More Benefits from Annuity Income
There are a few benefits to a fixed index annuity. You can choose from a variety of guarantees and protections. Also, the insurance company assumes all risks. As a result, your annuity income is protected.
Annuities are subject to surrender charge periods. Timeframes can vary but are usually between five and ten years long. You will not lose any money if you adhere to the terms of your contract. Also, an income annuity does not depend on the performance of the stock market. Regardless of market fluctuations, the amount of annuity income is locked and guaranteed.
An FIA gives you control over your retirement income. As you accumulate money, it increases in value. When the accumulation phase ends, payments begin. The contract provides you with a guaranteed income* in retirement. The amount of your monthly payments is determined by the contract value.
You have several options for receiving annuity payments. You can receive immediate annuity payments or you can receive deferred annuity payments. In addition, the method you choose may have tax benefits. Also, you may receive some of the income as a refund. Part of it may be taxable due to interest earned. Once you withdraw your income, you will have to pay taxes. If you need more information regarding taxes, speak with a tax professional.
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Benefits That Extend Beyond Your Lifetime
A fixed annuity is payable to a beneficiary when you die. Moreover, some types provide a death benefit after income payments are made. A lump sum may also be awarded to the beneficiary. Those who do not intend to access their annuity income can still choose a fixed index product. And, your beneficiaries receive the money without going through probate.
