Northwestern Mutual

Immediate Income Plans

Choose how to convert your annuity into guaranteed1 retirement income from a variety of income plan options.

What is an Income Plan?

Your strategy for taking income distributions from your retirement savings is just as important as your strategy for accumulating those savings throughout your career. When you purchase a deferred annuity (either variable or fixed), you can withdraw all or part of your money at retirement or take advantage of a variety of income payment plan options. Some of those options allow you to create a guaranteed1 retirement “paycheck", a stable income stream for the rest of your life or for both your life and a loved one’s life.

What types of Income Plans are there?

Fixed Income Plan. Offering a high level of safety and predictability1, a Fixed Income Plan provides income payments that either remain the same or start out slightly lower and increase annually by a percentage of your choice. In either case, your payments are guaranteed to never decrease. Some Fixed Income Plans may also allow the withdrawal of some of your future payments to use if there is an unexpected event.

A Fixed Income Plan may be right for a portion of your retirement savings if you are concerned about your account losing value due to market risk, or if you are trying to offset the risk in your other retirement funds and investments.

Portfolio Income Plan. A Northwestern Mutual exclusive, the Portfolio Income Plan offers guaranteed lifetime income with the opportunity for growth through dividends.2 Your payments start with a guaranteed base amount. Future payments will never fall below that base amount for the rest of your life, and can increase with potential dividends. Whenever dividends are paid, you have the flexibility to take them as cash, reinvest them in the contract for increased lifetime income, or choose a combination of the two.

The Portfolio Income Plan may be right for you if you are looking for a fixed, guaranteed amount of income each month with the potential for growth through dividends.

Variable Income Plan. Available for owners of a Variable Annuity. Learn More

Choose income for a lifetime (or two) or a specific time frame.

When choosing an income plan for your retirement, you have a number of choices:

  • Period Certain: Payments are guaranteed to you or a beneficiary of a Select Immediate Income Annuity for a certain number of years, for example, 5, 10 or 20.  This option can also be added to any life plan to make sure payments are made for a minimum number of years.
  • Single Life: Get guaranteed income payments for the rest of your life. This option gives you the largest amount of monthly income because it is based on just your life.
  • Single Life Refund: You receive guaranteed income payments for the rest of your life. If you should die during the payment phase and all of the income you've received to date doesn't equal your original deposit, payments will continue to your beneficiary until the premium amount is refunded.
  • Single Life with Period Certain: You receive guaranteed income payments for the rest of your life, but if you die within the Period Certain – typically from 5 to 20 years – the income will continue to be paid to your beneficiary for the remainder of that period.
  • Joint Life or Joint Life with Survivor: Income is paid for your lifetime or the lifetime of your Joint Annuitant (your spouse or other loved one you've named in your contract), whichever is longer.
  • Joint Life or Joint Life with Survivor and a Period Certain: Income is paid for your lifetime or the lifetime of your Joint Annuitant, depending on who lives longer. If you both die before within the Period Certain, the income will continue to be paid to your beneficiary for the remainder of that period.

More on This Topic

Click on the links below to access more information.

  • Guaranteed Retirement Income

    Guaranteed Retirement Income

    Learn how to create a predictable source of guaranteed, stable income for your retirement.

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  • Your Retirement Paycheck

    Your Retirement Paycheck

    Learn how to turn your savings into the income you need to cover your retirement expenses.

    Watch
  • Portfolio Income Plans

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    Portfolio Income Plans

    Learn how easy it is to choose a Portfolio Income Plan that works for your retirement.

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