Income annuities can help you retire worry free with guaranteed income that will last through retirement, never go down, and that you can never outlive. Think of it like a paycheck for life because it provides a guaranteed income stream. Take our quiz to find out if an annuity is right for you.
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. An annuity is one way to make sure your retirement goals stay on track, giving you a steady stream of income that doesn't change based on market volatility and is guaranteed to last the rest of your life.
There are different types of annuities that might be right for you depending on your goals. Income annuities are typically purchased close to retirement and give you predictable income for the rest of your life. Fixed and variable annuities can also help you grow your assets during your working years.
Income annuities give you guaranteed income in retirement.
An income annuity can help you make sure you're ready for whatever life throws at you. It means you won't outlive the income stream and won't have to worry about running out of money in retirement. And it means you won't be at the mercy of the markets or the future of Social Security when you're ready to retire.
You won't lose your money if you pass away sooner than expected.
Many of our income annuities come with an optional 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.
Annuities are more affordable than many people think.
Like with all financial products, annuities do come with some costs. But depending on the type of annuity you purchase, it could come with some big benefits like tax deferral, a minimum death benefit, and/or guaranteed income for life. Even better, the income from your annuity will never go down—in fact, some annuities earn dividends, meaning your income could go up over time.
There are a few different types of annuities. Income annuities give you a guaranteed, steady stream of income in retirement that will last the rest of your life. Fixed and variable annuities can help you grow your savings for retirement. Find out more about how annuities work.
Annuities could be a great option for anyone who wants to plan ahead for the money they'll need in retirement. To find out how an annuity fits into your financial plan, connect with an advisor.
Annuity income refers to the payments you get from your annuity in retirement. Depending on the kind of annuity you own, it can be taken annually, semi-annually, quarterly, or monthly. Your financial advisor can help you decide what payment structure would work best for your goals. Connect with an advisor.
An immediate income annuity's name somewhat defines it—it's intended for someone who is near retirement because payments begin within a year of purchase. Other annuities are best purchased throughout your working years, based on your life and goals. The right time to buy an annuity is different for everyone. Your Northwestern Mutual financial advisor can help you decide what type of annuity is the smartest option for your plan. Connect with an advisor.
In addition to income annuities, there are also fixed and variable annuities. These can help you save for retirement and grow your money over time. Then when you get to retirement, you'll have the option to take your account value in one lump sum or convert it to a guaranteed stream of income. Find out more about the different types of annuities.
What are the types of income annuities?
Immediate Income Annuities
An immediate income annuity is best for someone who is very close to retiring, as it gives you a guaranteed stream of income that starts within one year of purchase and continues for the rest of your life.
Deferred Income Annuities
A deferred income annuity lets you set aside a portion of your savings today to create income for your retirement. The earlier you buy one, the higher your income payments will be down the road.
When you work with Northwestern Mutual, we listen to the goals you have and design a financial plan tailored specifically to your life. An income annuity could be an important part of that plan, giving you a guaranteed stream of income that will take you all the way through your retirement. Find out more about how we plan.