Income Planning
Turn Savings Into Predictable Income
Compare common annuity structures and see how guaranteed income may fit alongside Social Security, pensions, and investment accounts.
Retirement Income Planning
Turn Your Savings Into Predictable Monthly Income
See how your retirement nest egg could grow — and how much monthly income it could generate — in under 60 seconds.
Calculate My Retirement IncomeIs This Right For You?
This retirement review may help if you:
- Have $100,000+ in retirement savings
- Are nearing retirement or already retired
- Want protection from market downturns
- Want predictable retirement income
- Are reviewing 401(k) rollover options
- Are concerned about running out of money in retirement
IRA & 401(k) Rollovers
Review Rollover Options With Clarity
Understand the tradeoffs before moving retirement assets, including taxes, surrender periods, liquidity, beneficiary needs, and fees.
Risk Guidance
Balance Growth Potential And Market Risk
Explore fixed, indexed, and variable annuity considerations so you can match risk exposure with your retirement timeline.
Risk education
Six things to know before choosing an annuity
Surrender periods limit access
Most annuities charge a surrender fee if you withdraw more than the free amount during the first several years. Know the schedule before committing funds you may need sooner.
Riders and expenses add up
Income riders, death benefit riders, and administrative fees reduce account growth. Compare total cost across carriers and understand what each optional rider actually provides.
Fixed payments may lose purchasing power
A fixed-income stream that does not adjust for inflation will buy less over time. Some contracts offer cost-of-living riders, but they typically reduce the initial payment amount.
Claims-paying ability matters
Annuity guarantees are backed solely by the issuing insurance company. State guaranty associations provide a safety net, but coverage limits vary and do not cover all products.
Contract terms are dense
Annuity contracts contain detailed provisions for withdrawals, step-ups, caps, spreads, participation rates, and vesting schedules. A licensed professional can help interpret how each applies.
Withdrawals are taxed as income
Earnings withdrawn from an annuity are taxed as ordinary income, not capital gains. Early withdrawals before age 59½ may also incur a 10% IRS penalty on the earnings portion.
People also ask
Annuity questions worth answering early
What is an annuity?
An annuity is a contract with an insurance company that can provide tax-deferred growth, future income, or both depending on the type of contract and options selected.
Who should consider getting an annuity?
People often consider annuities when they want more predictable retirement income, principal protection options, tax deferral, or a way to address longevity risk.
Can I roll over a 401(k) or IRA into an annuity?
In many cases, retirement assets can be moved into a qualified annuity, but the rollover process, tax treatment, fees, and suitability should be reviewed carefully before acting.
Will I pay taxes on an annuity rollover?
A properly handled qualified rollover may avoid immediate taxation, while non-qualified transfers and withdrawals can have different tax consequences. A tax professional can confirm your situation.
What risks come with annuities?
Risks may include limited liquidity, surrender charges, inflation risk, insurer claims-paying risk, fees, tax penalties for early withdrawals, and contract complexity.
Can an annuity lose money in the market?
It depends on the annuity type. Fixed annuities generally avoid direct market loss, indexed annuities limit upside and downside through formulas, and variable annuities can fluctuate with investment performance.
What is market risk in a variable annuity?
Variable annuities place money in investment subaccounts, so account value can rise or fall based on market performance unless specific guarantees or riders apply.
How do surrender charges work?
Many annuities charge a fee if you withdraw more than the free-withdrawal amount during the surrender period. The schedule is contract-specific and should be reviewed before purchase.
Are annuity income payments guaranteed?
Some income features are guaranteed by the issuing insurance company, subject to contract terms and claims-paying ability. Investment performance and optional riders can change how benefits work.
How much money should I put into an annuity?
That depends on your income needs, emergency savings, health, taxes, investment mix, beneficiaries, and liquidity needs. Most people evaluate annuities as one part of a broader retirement plan.