Can a Fixed Income Annuity Secure a Comfortable Retirement?
Book Your Free Strategy Session with One of Our Agents
Lifetime Income Annuity for Retirement
A fixed income annuity can provide a predictable, guaranteed stream of income during retirement. Something many retirees value as they shift from saving to spending. But is it the right fit for your financial plan? Before you commit part of your $1,000,000+ portfolio to a fixed income annuity, it’s important to understand how it works, what it costs, and whether it aligns with your long-term goals.
Take the first step toward meeting your financial goals by having a conversation with one of our licensed representatives. We’ll take the time to understand your unique situation while answering your questions about investing in annuities. Plus much more, including:
Reviewing Your Portfolio and Goals
Tell us about your retirement needs and wants, and hear how we can help you achieve them.
Evaluating Your Financial Plan
Get a second opinion on your retirement plan to make sure you’re on track.
Discussing Annuity Options
Learn the different annuity types and if they’re right for you.
What is a Fixed Income Annuity?
If you’re looking for a reliable, steady income during retirement, a fixed income annuity might be worth considering. This type of annuity is a contract with an insurance company where you pay a lump sum up front, and in return, they guarantee regular payments to you, either for a set number of years or for the rest of your life. It’s a way to turn part of your savings into predictable income you can count on.
Unlike other annuities that rely on market performance, fixed income annuities don’t change with the ups and downs of the stock market. You know exactly what you’re going to get. Payments that begin either right away (immediate annuity) or at a later date (deferred income annuity). That certainty can be a great fit for retirees who want to cover essential expenses without guessing what the market will do next.
While fixed income annuities are simple in structure, they’re still long-term contracts that come with trade-offs. Once you annuitize, you give up access to the lump sum you invested. That’s why it’s so important to understand the details before you commit. At My Annuity Agents, we’ll help you weigh the pros and cons and see if a fixed income annuity aligns with your retirement goals. No pressure, just honest answers.
Fixed Income Annuity Pros and Cons
A fixed income annuity offers some powerful advantages for retirees who want predictable income. One of the biggest pros is the guarantee. You’ll receive a steady stream of payments for life or for a set period, no matter how the markets perform. This makes it easier to plan your monthly budget and feel confident that your basic living expenses will be covered. Fixed income annuities are also simple to understand, especially compared to other financial products, and they remove the worry of managing investments during retirement.
However, there are some downsides to consider. Once you convert your lump sum into income (a process called annuitization), you usually give up access to that money. That means if an emergency comes up or your financial needs change, you won’t be able to take the money back. Fixed income annuities also don’t keep up with inflation unless you specifically choose an inflation-adjusted option, which may come with lower starting payments.
Like any financial product, a fixed income annuity should only be used if it fits your personal retirement plan. At My Annuity Agents, we help you understand all sides so you can make a decision that’s right for your life, not someone else’s sales goal.
For more than 20 years, we’ve been guiding clients toward their financial goals. Let’s connect and explore whether we’re the right fit to help you move forward.