Fixed Indexed Annuities

Prepare for retirement with greater confidence.

You’ve worked hard to build your savings. As retirement approaches, your priorities may shift toward protecting a portion of that money and creating income you can depend on. A fixed indexed annuity may help address those goals while offering interest growth potential.

We can help you explore available options, understand how they work, and determine whether an annuity fits your retirement needs.

What is a fixed indexed annuity?

A fixed indexed annuity (FIA) is a contract with an insurance company designed for long-term retirement savings. You fund the contract with a premium, and the insurer credits interest according to the options you select. These may include a fixed interest option and strategies linked to the performance of a market index.

Your money is not invested directly in the stock market. Index performance helps determine interest credits under the contract’s rules, which can limit how much interest you earn.

Protection from market downturns

A fixed indexed annuity can protect your contract value from losses caused by a decline in the index used to calculate interest. If that index falls during a crediting period, the indexed strategy generally earns no interest for that period rather than a negative interest credit.

That protection does not eliminate every possible reduction in value. Withdrawals, surrender charges, rider fees, and other contract adjustments can affect the amount available to you. We’ll review those details so you understand what is protected and under what conditions.

Interest growth potential

Indexed strategies offer the opportunity to earn interest when the selected index performs positively. The amount credited depends on the contract’s calculation method, including any caps, participation rates, or spreads. Some of these terms may change at renewal within contractual limits.

Growth is generally tax-deferred until money is withdrawn. An annuity held within an IRA or another tax-deferred retirement account provides no additional tax-deferral benefit; its other features should justify its place in your plan.

Income that can last throughout retirement

An annuity can help supplement Social Security, a pension, or other retirement income. Depending on the contract and options selected, you may be able to establish guaranteed income for your lifetime or for the lifetimes of you and a spouse.

Some contracts offer lifetime withdrawal benefits through an income rider, which may carry an additional fee. We’ll explain when income can begin, how payments are calculated, and how withdrawals affect remaining benefits. An income benefit base used to calculate payments may differ from the cash value available to withdraw.

Access to your money matters

Annuities are intended for money you can commit to a longer-term retirement strategy. Many contracts allow limited withdrawals without surrender charges, but larger withdrawals during the surrender period may incur charges and a market value adjustment.

Before considering an annuity, we’ll discuss your emergency savings, expected expenses, and how much money you need readily available. The goal is to balance retirement security with practical access to funds.

Explore your retirement income options

Whether you’re approaching retirement or already retired, we can begin with your income needs, existing savings, and priorities. We’ll review suitable annuity options and explain the benefits, costs, and limitations before you decide how to move forward. You've worked hard. What comes next?

Annuities are long-term insurance contracts. Benefits, crediting terms, fees, withdrawal provisions, and availability vary by product and state. Guarantees depend on the issuing insurance company’s financial strength and claims-paying ability. Annuities are not FDIC insured. Withdrawals may be taxable, and taxable distributions before age 59½ may be subject to an additional 10% federal tax unless an exception applies. This information is educational and is not individualized tax or legal advice.