What is an annuity?
When your paycheck ends, essential expenses continue. An annuity can turn part of your savings into income you can plan around. We’ll explain the benefits in plain language, review a contract you already own, or help you explore a new one.
Your initial consultation and review are free.
An annuity, explained simply
An annuity is a contract with an insurance company. You set aside money, and the contract can provide income now or later. The main reason many people consider one is to create a dependable source of retirement income.
Market down. No index-linked loss.
With a fixed indexed annuity that has a 0% floor, a falling index credits no interest for that term rather than subtracting the market decline from your indexed account. Your money is not invested directly in the index.
Index decline alone does not reduce the indexed interest account under an applicable 0% floor.
Hypothetical example, not a quote or a promise of a return. Contract terms vary. Rider fees, withdrawals, surrender charges and taxes may reduce what you receive. Guarantees rely on the issuing insurer’s claims-paying ability. NAIC buyer’s guide to fixed deferred annuities →
You set aside money
You place a portion of your savings into an annuity contract with an insurance company.
You choose an income plan
The contract sets out when payments can begin, how they are calculated, and which options you select.
You receive income
Depending on the contract and option chosen, payments may last for a set period or for your lifetime.
Why people consider annuities
A more predictable paycheck
Contract-defined payments can help cover regular expenses alongside Social Security and a pension.
Income that can last for life
Certain options can pay for as long as you live, helping address the risk of outliving your savings.
A start date that fits your plan
You may be able to begin payments soon or reserve them for a later stage of retirement.
Protection and family options
Some fixed contracts protect value from direct stock-market losses. Some contracts offer choices for beneficiaries.
Benefits vary by contract and the options chosen. Guarantees depend on the issuing insurer’s financial strength and claims-paying ability. Withdrawal limits, surrender charges, fees, and taxes can affect what you receive. An annuity inside an IRA or other tax-deferred retirement account does not add another layer of tax deferral.
Start with the income you need
List the expenses that continue every month. Subtract income you expect from Social Security and any pension. The remaining gap gives you a practical starting point for discussing how much additional income you want and when it should begin.
Estimate your monthly income gap →
The calculator organizes your numbers; it does not provide an annuity quote or determine suitability.
Already own an annuity? Know what it can do for you.
A free review can clarify when income may begin, what payments or protections your contract provides, what money remains accessible, and what would happen if you changed the contract. Bring your statement and contract for your own reference.
There is no need to replace an annuity simply because it is older. We will discuss your goals and compare any proposed change with the benefits and costs of the contract you have.
Make the benefits work for you
The right conversation starts with your income goal, your timeline, and the savings you want to keep accessible. We can then compare contract benefits with the terms that matter to you.
- How much dependable monthly income would help cover essential expenses?
- When would I want that income to begin, and for how long?
- How much of my savings should stay readily available?
- Which benefits, costs, and withdrawal terms are written into the contract?
Annuities are long-term insurance contracts. Features and guarantees vary by contract; review costs, liquidity, and tax treatment before deciding. Read the SEC’s annuity guide →
Request a free retirement income review
Discuss your income needs and any annuity you already own. We will contact you to arrange a time with a consultant.