A Simple Guide to Creating Reliable Retirement Income
Planning for retirement is about more than saving money. It’s also about making sure your savings can provide dependable income...
Read Article →Retirement planning is about more than saving money — it's about knowing how to turn savings into income you can count on. We'll help you understand fixed, fixed index, and variable annuities in plain English.
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An annuity is a contract designed to help you create income from money you've already saved — offering different combinations of growth, protection, and dependable payments.
Annuities can be structured in very different ways, which is why understanding the types available matters before making any decision. Whether you're approaching retirement, already retired, or simply exploring ways to create guaranteed retirement income, understanding how annuities work can help you make a more informed choice — without the sales pressure.
Different products are designed for different goals, timelines, and levels of risk. Here's each type, in plain English.
Provides a stated interest rate for a specified period. Appeals to people who prioritize predictable growth with less exposure to market swings.
Predictable GrowthInterest is credited based in part on a selected market index, subject to contract terms — offering upside potential with certain downside protections.
Index-LinkedLets you invest across selected sub-accounts, so value and potential income fluctuate with investment performance. Fees, risks and features vary by contract.
Market-ExposedGenerally begins income payments relatively soon after purchase — an option for converting a lump sum into a predictable stream of income.
Income NowAllows money to accumulate before income payments begin — an option for people planning ahead for future retirement income needs.
Income LaterA Multi-Year Guaranteed Annuity can provide a guaranteed interest rate for a specified period, subject to the contract's terms.
Fixed GuaranteeAn annuity should be evaluated as part of your complete financial picture.
Your retirement income needs and timeline
Social Security and other guaranteed income
Liquidity and emergency savings
Contract terms and surrender provisions
Insurance company financial strength
Fees, income options, and guarantees
Inflation and long-term purchasing power
Performance history
Agency length of experience & knowledge
Your broader retirement and legacy goals
Performance history
An annuity should be considered within the context of your complete financial picture — including other retirement accounts, investments, Social Security, and income needs.
"A lifetime income annuity may provide payments for life, according to the terms of the contract — addressing one of retirement's biggest concerns: outliving your savings."The amount available depends on the annuity selected, premium, age, income option, and interest rates.
Rates vary based on several factors worth understanding before comparing numbers alone:
A MYGA is a type of fixed annuity that provides a guaranteed interest rate for a specified period, subject to the terms of the contract.
If you're comparing MYGA rates or weighing a MYGA vs a CD, look past the advertised number and consider:
Both may offer predictability under certain circumstances, but they're different products with different tax treatment, liquidity, and guarantees.
| Consideration | Fixed Annuity / MYGA | Certificate of Deposit (CD) |
|---|---|---|
| Issuer | Insurance company | Bank or credit union |
| Tax treatment | Growth can be tax-deferred | Interest generally taxed yearly |
| Contract length | Often multi-year, varies by product | Set term, typically shorter options available |
| Liquidity | Subject to surrender charges & provisions | Early withdrawal penalties apply |
| Guarantees | Backed by issuing insurer's claims-paying ability | Typically FDIC/NCUA insured up to limits |
General comparison for educational purposes — always review the specific contract or account terms before deciding.
Explore our guides, tools, and educational resources to better understand your annuity options.
Explore our latest educational articles, guides, and insights about annuities and retirement income.
Whether it's a fixed, fixed index, variable, immediate, deferred, or MYGA annuity — we'll help you understand your choices clearly and make an informed decision.
No obligation. Just a clear, honest conversation about your retirement income options.