Fixed annuities can play an important role in your retirement planning. While a pension and Social Security may provide some retirement income, it may not be sufficient for the kind of retirement you want to have. Fixed annuities can help you save for retirement and provide you with additional income over the years ahead.
What Is a Fixed Annuity?
Essentially, a fixed annuity is a CD-type investment issued by an insurance company. You pay into the annuity, either in one lump sum or in payments over time. In exchange, you get a guarantee of receiving payments in the future, either for a specified period or for the duration of your life.
How Can Fixed Annuities Help with Retirement Planning?
Annuities are designed to help you save for your retirement and provide you with income when you retire. They offer several benefits, including:
- Tax-deferred growth potential
- Protection from market downturns, which is helpful in keeping up with rising medical costs and inflation
- Flexible income options
- Joint-life payout for both you and your spouse during retirement
- Death benefit for your beneficiaries (or a cause or charity you believe in)
Fixed annuities can be immediate or deferred. Deferred fixed annuities accumulate interest at a regular rate, while immediate fixed annuities make fixed payments during your retirement, with amounts determined by your age and the value of the annuity. Fees for fixed annuities vary, depending on type and amount, and the costs involved may be difficult for a person to understand without assistance from a professional. If you are considering a fixed annuity to improve the quality of your retirement, our agent at Nick Leinbach Agency in Gray, Tennessee, can help find the right insurance product for you and your spouse.
Plan for a Stable Retirement with Fixed Annuities
Fixed annuities are one of the best options that you can use to provide yourself with a steady stream of income throughout your retirement. It is an investment with guaranteed returns—a safety that you would appreciate fitting into your future calculations.
Reach out to the Nick Leinbach Agency, your trusted local insurance agency serving Gray, TN, and the Tri-Cities of Johnson City, Kingsport and Bristol, TN, at (423) 207-0099 or contact us here to see how fixed annuities can fit within your retirement planning. Trust us to be able to provide you with a safe future.
