Annuities for Steady Retirement Income
An annuity is a contract with an insurance company. You give it money, and it can pay you back over time. Many people use annuities to create steady income in retirement.
We explain how annuities work in plain words, so you can decide if one fits your plan.
How does an annuity work?
You pay money into the annuity. You can pay all at once or over time. Later, the annuity can pay you a set amount each month, or a lump sum.
Some annuities can pay you for the rest of your life. That can help you worry less about running out of money.
Types of annuities
- Fixed annuity: earns a set rate for a set time.
- Fixed indexed annuity: growth is tied to a market index, with limits on gains and protection from market losses.
- Income annuity: turns a lump sum into payments that start now or later.
Who might use an annuity?
An annuity may be worth a look if you:
- Want income you can count on in retirement
- Want to protect part of your savings from market drops
- Have maxed out other retirement accounts
- Want a plan that can include long-term care benefits
Things to know before you buy
Annuities are long-term plans. Many have surrender charges if you take money out early. Fees and terms are different for each one. We go over these details with you before you decide.
How an annuity fits in a retirement plan
Think of retirement income like a table with legs. Social Security is one leg. A pension or savings is another. An annuity can be one more leg, so the table stands steady.
An annuity is not right for everyone. It works best for money you will not need right away. We help you look at your whole picture first.
Questions to ask about any annuity
- How long is the surrender period?
- What fees will I pay?
- How is growth figured, and what are the limits?
- When can income start, and how long will it last?
- What happens to the money if I pass away?
Talk it through with us
We explain your choices in plain words. You will know how the annuity works before you decide. Call 310-704-4901 or request a quote online.
Why work with Jeff Davis Insurance?
We start with your income needs, not a product. Then we explain how an annuity could fill a gap, what it costs, and how long your money would be tied up, before you decide.
Request a free quote, send us a message, or call 310-704-4901.
Frequently asked questions
Is an annuity safe?
Annuities are backed by the insurance company that issues them. That is why it matters which company you choose. We look at company strength with you.
Can I take money out early?
Often you can take some out, but many annuities charge a fee for early withdrawals during the first years. Ask us about the surrender period.
What is the difference between an annuity and life insurance?
Life insurance pays your family when you pass away. An annuity is mostly made to pay you while you are living.
Can an annuity help pay for long-term care?
Some annuities have long-term care features. These can add money for care if you need it.
What age should I buy an annuity?
Many people look at annuities in their 50s and 60s as they plan for retirement. The right time depends on your goals.
Do annuities pay for life?
Some can. Income annuities can be set up to pay you for the rest of your life.
Coverage is subject to insurer underwriting, approval and policy terms. A quote request does not bind coverage.