aNNUITIES
Turn Savings Into Retirement Income
Annuities are insurance-based financial products designed to help convert savings into income, including options that can provide payments for a set period or for life.
What Is an Annuity?
An annuity is a financial contract issued by an insurance company.
You contribute money to the contract, and in return, the insurer may provide income immediately or at a future date.
Depending on the annuity, payments may continue for a fixed number of years, for your lifetime or for the lifetime of you and another person.
Why Consider an Annuity?
Lifetime Income
Certain annuities can provide guaranteed income for as long as you live.
Retirement Stability
Annuities can help create predictable income alongside Social Security, pensions and investment withdrawals.
Flexible Options
Different annuity types can be used for growth, income, principal protection or a combination of these goals.
Explore Annuity Types
Immediate Annuities
Begin income payments soon after the contract is purchased.
Deferred Annuities
Allow money to accumulate before income payments begin later.
Fixed Annuities
Provide a stated interest rate for a specified period, subject to contract terms.
Fixed Indexed Annuities
Credit interest based partly on the performance of a market index, subject to caps, floors and other terms.
Variable Annuities
Allow contract value to be invested in market-based subaccounts that can rise or fall in value.
Lifetime Income Annuities
Designed primarily to provide income that can continue for life.
Compare Common Annuity Types
Feature Immediate Fixed Fixed Indexed Income Start Soon after purchase Usually later Usually later Growth Method Primarily income-focused Fixed interest Index-linked crediting Market Exposure No direct exposure No Indirect Principal Protection Varies by contract Generally stronger Generally stronger Common Use Retirement income Stable accumulation Growth + protection
Annuity Rates
Annuity rates can vary based on the product type, interest-rate environment, age, premium amount and insurer.
Your rate may depend on factors such as:
Age
Deposit amount
Annuity type
Interest rates
Income start date
Payment option
Guarantee period
Insurer
Annuity Rate Table
Rates updated: 2026
Annuity Type Age Deposit Rate / Payout Income Start Immediate 60 $100,000 — Immediate Immediate 65 $100,000 — Immediate Fixed — $100,000 — Deferred Fixed Indexed — $100,000 — Deferred Deferred Income 60 $100,000 — Age 70 Lifetime Income 65 $100,000 — Immediate
Disclaimer: Annuity rates, payout amounts, guarantees and product availability vary by insurer, age, state, contract design and market conditions. Values shown are placeholders for future comparison data.
What Can Affect Annuity Rates and Income?
Age
Older purchasers may receive higher lifetime income payments because expected payout periods are shorter.
Deposit Amount
Larger deposits generally create larger potential income payments.
Interest Rates
Current interest-rate conditions can affect annuity crediting and payout levels.
Income Start Date
Delaying income can change the amount of future payments.
Payout Option
Single-life, joint-life and period-certain options can produce different payout amounts.
Contract Features
Inflation protection, guarantees and riders can affect both income and cost.
Who May Consider an Annuity?
An annuity may be worth considering if you want more predictable retirement income or additional protection against outliving your savings.
Common Reasons
Creating lifetime retirement income
Supplementing Social Security
Supplementing pension income
Reducing longevity risk
Converting savings into predictable payments
Protecting part of retirement savings
Adding income stability
Benefits and Things to Consider
Benefits
Lifetime income options available
Predictable retirement cash flow
Tax-deferred growth on many annuities
Multiple contract types
Can reduce longevity risk
Things to Consider
Contracts can be complex
Surrender charges may apply
Fees vary by product
Inflation can reduce purchasing power
Guarantees depend on insurer financial strength
Annuities vs. Other Retirement Income Sources
Annuities
Can provide guaranteed or predictable income based on contract terms..
401(k) Withdrawals
Provide flexible access to retirement savings but depend on account balance and investment performance.
Social Security
Provides government retirement income based on earnings history and claiming age.
Common Annuity Questions
You contribute money to an insurance contract, and the insurer may provide growth, future income or both depending on the product.
Yes. Certain annuities can provide payments that continue for the lifetime of one or more people
Immediate annuities begin payments soon after purchase, while deferred annuities begin income later.
Certain payments can be guaranteed according to contract terms and the claims-paying ability of the insurer.
Earnings inside many non-qualified annuities grow tax-deferred until withdrawn.
Access depends on the contract. Withdrawals may be limited and surrender charges can apply.
That depends on the payout option, beneficiary provisions and contract design.
No. Suitability depends on income needs, liquidity, time horizon, existing assets and retirement goals.
Related Retirement Option
401(k)
Explore employer-sponsored retirement accounts and rollover options.
IRA
Explore traditional and Roth individual retirement accounts.
Pensions
Learn how pension income can support retirement.
Social Security
Learn how Social Security benefits can fit into retirement income planning.
Ready to Explore Annuities?
Compare annuity types, rates and income options to see how they may fit into your retirement strategy.
