An income annuity is funded by a single premium that is converted into a steady stream of guaranteed income payments.
Income annuities can either be:
- Immediate Income—your income can start as soon as you buy the annuity or within 13 months
- Deferred Income—your income payments start 13 months or more after you buy the annuity
Either way, income payments can last as long as you live, guaranteed.1
Northwestern Mutual offers three types of income annuities to help meet your needs during retirement. All are single premium contracts and provide a reliable and guaranteed stream of income for the rest of your life. Two options provide a guaranteed fixed income payment each month and one solution provides the potential for growth through dividends.
Let’s look at some highlights of each.
Select Immediate Income Annuity
With the immediate income annuity, income begins now or within 13 months, and the amount of income you receive each month is fixed and guaranteed1 for the rest of your life, or for a specified period of time. You may choose a life plan and may add a period certain of up to 20 years, which ensures payments continue to a beneficiary in the event of your death for the remainder of the period certain.
Select Deferred Income Annuity
This income annuity may be appropriate for someone who does not have an “immediate” income need but one that will begin within a 13-month to 10-year timeframe, and who wants to lock in a guaranteed income source in the future.
The amount of income payments you receive is fixed, guaranteed and not affected by what happens in the market.
Select Portfolio Deferred Income Annuity
An exclusive new retirement solution from Northwestern Mutual that potentially offers guaranteed income payments with income growth potential through dividends.
With this deferred income annuity, you can leverage a single premium payment using tax-qualified funds, including rollovers from a 401(k), IRA, or Roth IRA. Income may begin following a 13 month deferral period or up to decades in the future and payments are guaranteed for the rest of your life.
Withdrawals are not allowed from income annuities, except for the Accelerated Withdrawal Provision on the Select Immediate Income Annuity.
1All guarantees are based solely on the claims-paying ability of the issuer.
2Dividends are not guaranteed.