Income Annuities

Create guaranteed retirement income, right when you need it.

With uncertainty surrounding Social Security and fewer employer-sponsored pension plans, many of today’s investors are facing a tough road to retirement. And the average retirement is longer than ever before—sometimes as much as 30 years. How do you go about creating retirement income that will last as long as you need it to? 

An income annuity is an insurance contract that promises a guaranteed stream of income over a period of time, in exchange for a lump sum of money. It’s like purchasing a paycheck for life.

Find an advisor to discuss with a financial advisor whether an income annuity is right for you.

Options for every step of the retirement path.

The Principal Financial Group® (The Principal®) offers two main types of income annuities:

  • Immediate Income Annuities (SPIA) are meant for clients looking for guaranteed income to begin within the next 12 months.
  • Deferred Income Annuities (DIA) are for clients who need guaranteed income payments to begin 13 or more months in the future.

For each kind of income annuity, the process is simple:

  1. Contribute whatever amount you choose.
  2. Select from several payout options.
  3. Elect monthly, quarterly, or annual payments.
  4. Begin receiving income when you need it.

For even greater flexibility, you may choose to add inflation protection (to increase payment amounts yearly) and/or utilize a Liquidity Rider (the option to take a one-time, penalty-free withdrawal if needed) for no additional fee.

Income payments on your terms.

Receive payments for life or for a period of time you specify—how your annuity is paid out is entirely up to you.

  • Add period-certain or refund terms to your lifetime payout.
    Extend payments to your beneficiary for a set timeframe after you die, or refund all remaining premiums to your beneficiary at once.
  • Or choose from fixed-period or fixed-amount payouts.
    Decide on a span of time for which you’d like to receive payments, or specify the amount you’d like each check to be.
  • Ensure the security of a partner or family member.
    Provide for payment over the lives of two individuals with Joint and Survivorship options, including optional period-certain terms.
Already have an annuity with The Principal®?

Access your account information online.

We're here to help

Visit our annuities help section, or call us at 800-852-4450.

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