An annuity is an agreement or contract between you and an insurance company that lets you put money away for retirement, so you can get a guaranteed1 regular "paycheck" after you retire. Annuities grow tax-deferred until they start paying you an income. You contribute to an annuity - either as a lump sum, or in several payments over time - in order to get regular payments in the future, and for the rest of your life. As a tradeoff, annuities come with less liquidity than other investments2. It's smart to choose a company like Northwestern Mutual, with its exceptional credit ratings and 160 years of service, to guarantee these payments.
More than one in three (36 percent) investors have an annuity within their investment portfolio. IRI Fact Book 2014
An annuity can be a great source of regular retirement income. There are many annuities to choose from depending on your goals, time frame, risk tolerance, and family situation. Annuities can be either immediate or deferred. Northwestern Mutual is the second-largest deferred-income annuity provider in the U.S.3
Northwestern Mutual's annuities are backed by a history of financial strength.4 When there are guarantees provided by an annuity contract, you want to be sure that your money will be there when you need it most.
The insurance company's financial strength and claims-paying ability that back the guarantees are very important factors in any decision you make with your money.
Northwestern Mutual has consistently maintained the highest available financial strength ratings from the industry's third-party rating agencies. We've weathered 160 years, two world wars, the Great Depression and the Great Recession without ever missing a payment (or even coming close).
Annuities are great for anyone wanting to supplement or fund his or her retirement savings, with an income stream that lasts for life.
Our financial advisors can help you with annuities and determine if they can fit into your financial plan.Let's Talk
To learn more about Northwestern Mutual Investment Services, LLC and its financial representatives, visit FINRA BrokerCheck
1All guarantees are backed by the claims-paying ability of the issuer.
2Withdrawals from annuities may be subject to ordinary income tax, a 10% IRS early withdrawal penalty if taken before age 59½, and contractual withdrawal charges.
3Deferred Income Annuity Sales Growth Trends (LIMRA data through June 30, 2016)
4Ratings are for The Northwestern Mutual Life Insurance Company and Northwestern Long Term Care Insurance Company, as of the most recent review and report by each rating agency. Northwestern Mutual's ratings: A.M. Best Company A++ (highest), April 2017; Fitch Ratings AAA (highest), July 2017; Moody's Investors Service Aaa (highest), July 2017; S&P Global Ratings AA+ (second highest), June 2017. Ratings are subject to change.
No investment strategy can guarantee a profit or protect against loss. All investments carry some level of risk including the potential loss of principal invested. Financial Representatives do not give legal or tax advice. Taxpayers should seek advice based on their particular circumstances from an independent tax advisor.
Clients should refer to the appropriate disclosure brochure for important information on NMIS and/or NMWMC, their services, fees and conflicts of interest before investing or engaging in financial planning services.