How do annuities work as part of a financial plan?

Whatever you dream of when it comes to retirement, making sure you'll have the money to make it happen is an important part of your financial plan. These days, fewer and fewer companies are offering pensions, and the future of Social Security is uncertain. So now, more than ever, people have to rely on themselves to plan for their finances in retirement. A fixed or variable deferred annuity can be a smart way to keep your retirement goals on track by letting you save and grow your money, tax deferred, over and above what you can save by maxing out your contributions to your 401(k) or IRA.

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What to know about fixed and variable annuities:

Annuities are more affordable than many people think

Like with all financial products, annuities do come with some costs. But there are also some big benefits. Depending on the type of annuity you purchase, you can have tax deferment, a minimum death benefit, and/or guaranteed income for life.

You wont lose your money if you pass away sooner than expected

Many fixed and variable annuities come with a death benefit feature to make sure your loved ones will get back at least what you've put into your annuity if you pass away before your income payments start.

It's never too early or too late to start planning for the future.

A fixed or variable annuity can be a great way to save money for the future and let it grow, tax deferred. With a fixed annuity, you can get guaranteed growth.1 With a variable annuity, you can invest your savings.2 Either is a great option when it comes to rolling over a workplace retirement plan or if you've maxed out your 401(k) or IRA contributions.

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Which type of annuity will help you meet your goals best?

Compare life insurance products
Fixed AnnuityVariable Annuity
Option to convert to an income plan at retirement to receive income payments for life
A guaranteed death benefit following the death of the owner of the annuity*
Tax-deferred growth
Multiple investment sub-account options that are managed by dedicated and experienced professionals**
Variable investments that can provide the potential to keep pace with inflation***
Tax-free, cost-free transfers of assets between available investment sub-accounts****

*Variable Annuities are sold by prospectus only. Clients should carefully consider the investment objectives, risks, expenses and charges of the investment company before they invest. A Northwestern Mutual Investment Services Registered Representative can provide clients with a contract and sub-account prospectus that will contain the information noted above and other important information that clients should read carefully before they invest or send money.

**The performance of variable sub-accounts is not guaranteed, and variable annuities are subject to market risk, including loss of principal. No investment strategy can guarantee a profit or protect against a loss.

***Variable annuities are subject to fees and charges, such as mortality and expense charges, annual contract fees, sales charges, and portfolio expense fees associated with the underlying investment options.

****Please refer to the Prospectus for details of all fees and charges.

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of our clients stay with us year after year4

Statistic for Northwestern Mutual, based on Northwestern Mutual policyowner data.

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years strong through depressions, downturns, pandemics, and two world wars

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A++ AAA, Aaa and AA+ maintaining the highest financial strength ratings awarded to life insurers from all major rating agencies during this pandemic

AAA, Aaa and AA+ maintaining the highest financial strength ratings awarded to life insurers from all major rating agencies during this pandemic5

Statistic for Northwestern Mutual, Dividends are reviewed annually and are not guaranteed. based on Northwestern Mutual policyowner data.

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