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Annuities for retirement income

Turn part of your savings into income you can't outlive. We compare fixed, fixed indexed, and income annuities from multiple insurers.

Retired couple reviewing finances and annuity options

How annuities work

An annuity is a contract with an insurance company. You pay a lump sum or a series of payments, and the insurer provides growth, guaranteed income, or both.

Fixed annuities pay a guaranteed rate for a set number of years. Fixed indexed annuities link growth to a market index with a floor against losses. Immediate income annuities start paying right away, and deferred income annuities start payments at a future date you choose.

Types
Fixed, fixed indexed, immediate, deferred
Growth
Tax-deferred until withdrawn
Income
Can be guaranteed for life
Access
Limited during the surrender period

Is an annuity right for you?

A good fit if you

  • Are nearing or in retirement
  • Want income you can't outlive
  • Prefer guarantees over market risk
  • Are rolling over a 401(k) or other retirement savings

Keep in mind

  • Surrender charges apply if you withdraw too much early
  • Withdrawals before age 59½ may face a 10% IRS penalty
  • Guarantees depend on the insurer's claims-paying ability

This page is general information, not tax or investment advice. Annuity features and availability vary by carrier and state.

Annuities questions

Don't see yours? Ask us directly.

How is an annuity different from a CD?

Both can offer a guaranteed rate. Annuities grow tax-deferred and can turn into lifetime income, while CDs are bank products with FDIC insurance and interest that is taxed each year.

Can I get to my money?

Most annuities let you withdraw a portion each year, often 10%, without a surrender charge. Larger withdrawals during the surrender period cost more.

Are annuities safe?

Annuity guarantees are backed by the issuing insurance company, so we focus on carriers with strong financial strength ratings. States also have guaranty associations that provide some protection.

What happens to my annuity when I die?

It depends on the contract. Many annuities pass remaining value to your beneficiaries, and some income options continue payments to a spouse.

Compare an annuity quotes from multiple insurers

A short call with a licensed agent is all it takes to see your options.