Annuities
An annuity is a contract with an insurance company. You put money in, and the company can pay you income later — or right away — depending on the type you choose. Annuities are one tool for retirement income, not a fit for every person or every dollar.
What an annuity can do
Some people use an annuity to create a paycheck in retirement. Others use one to protect a portion of savings they do not want to outlive.
The details matter: when payments start, whether the payment can change, what fees apply, and what happens if you need the money early.
Common types you may hear about
Names vary by company. These are the broad kinds most people compare:
- Immediate: payments start soon after you buy
- Deferred: money grows first, and payments start later
- Fixed: the company sets a rate or payment formula you can understand up front
- Variable or indexed: payments or account value can move with markets or an index — usually with more complexity and risk
What to check before you buy
Bring these questions to any conversation:
- When do payments start, and can they change?
- What fees, surrender charges, or limits apply if you need money early?
- What happens to remaining money if you pass away?
- How does this fit with Social Security, pensions, and other savings?
- Is this product suitable for your age, health, and goals?
Annuities and life insurance
If your main goal is to leave money for a spouse or family, start with life insurance. If your main goal is income you cannot outlive, start here. Many people look at both.
How SRS helps
A licensed insurance agent at Senior Retirement Solutions starts with your goals, timeline, and other income sources, then explains options in plain language. No decision is required on the first call.
Common questions
Is an annuity the same as life insurance?
No. Life insurance pays a benefit when you pass away. An annuity is mainly about income or protecting savings during life. Some products combine features, which is why the contract details matter.
Can I lose money in an annuity?
It depends on the type. Some fixed designs protect principal under the contract; others can go up or down with markets or an index. Ask what is guaranteed and what is not before you buy.