Income annuities

The average retirement is longer than ever before—sometimes as much as 30 years. And while that means more time doing the things you love, it also means that your money needs to last longer, too.

How do you go about creating retirement income that will last as long as you need it? Consider an income annuity.

An income annuity is an insurance contract that promises guaranteed, pension-like income over a period of time, usually for the rest of your life or the life of you and your partner. You purchase the guaranteed payments with a lump sum of money or ongoing payments. It’s like creating your own personal pension plan.

Options for every step of the retirement path.

Whether you’re retiring soon or still saving, an income annuity can be a solid addition to your retirement strategy. There are two main types of income annuities:

Immediate Income Annuities (SPIAs)

• Immediate income annuities are meant for those who are retired or nearing retirement and are looking for guaranteed income to begin within a year. An immediate income annuity converts a portion of your retirement savings to create a guaranteed, regular stream of income. Your income payments are protected from market risk, and when you choose a lifetime income payout option, you can’t outlive them.

Deferred Income Annuities (DIAs)

• Deferred income annuities are for those who are still saving for retirement and need guaranteed income payments to begin in the future. A deferred income annuity lets you purchase future guaranteed income with retirement savings you already have. You choose when and how often you’ll receive payments.

For even greater flexibility, you may choose to add inflation protection (to increase payment amounts yearly) and/or use a liquidity feature (the option to take an advance on your income payments if needed). These optional benefits may be available for no additional fee.