Fixed annuity
A guaranteed interest rate for a set number of years. Think of it as a CD issued by an insurance company, often at a higher rate.
Retire
Turn savings into a paycheck you can't outlive.
Annuities can protect part of your savings from market drops and pay you income for life. They also come with fine print, so we walk through both before you decide anything.
Fixed indexed annuity
Interest tied to a market index like the S&P 500, with a 0% floor, so a down year credits nothing instead of costing you money.
Lifetime income
Turn part of your savings into a guaranteed monthly payment for the rest of your life, on top of Social Security.
What's guaranteed, and what isn't
Guaranteed
- Your principal doesn't go down because the stock market does.
- A fixed annuity's rate is locked for its term.
- Lifetime income, once started, is paid for as long as you live.
Has limits
- Withdrawing more than the free amount (commonly about 10% a year) in the first several years can mean surrender charges.
- Indexed gains are capped, so you get part of the market's upside, not all of it.
- Withdrawals are taxed as income, and taking money out before 59½ can add a 10% IRS penalty.
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Read the full guide →
Who this tends to fit
- You're within about ten years of retiring, or already retired.
- You want part of your savings protected from the next market drop.
- You want a paycheck you can count on, on top of Social Security.
It's usually not the right place for money you may need in the next few years.