INCOME FOR
YOUR BEST YEARS
Planning for retirement is about more than saving money—it's about creating a reliable income you can count on for years to come. Income planning helps you develop a strategy to turn your retirement savings into a steady stream of income while balancing your lifestyle, expenses, and long-term financial goals.
One tool that may play a role in a retirement income strategy is an annuity. Depending on the type of annuity you choose, it can provide guaranteed income for a specific period or even for the rest of your life, helping reduce the risk of outliving your savings.
Annuity Highlights
In its most general sense, an annuity is an agreement for one person or organization to pay another a stream or series of payments. Usually the term “annuity” relates to a contract between you and a life insurance company, but a charity or a trust can take the place of the insurance company.
There are many categories of annuities.
They can be classified by:
✔ Nature of the underlying investment – fixed or variable
✔ Primary purpose – accumulation or pay-out (deferred or immediate)
✔ Nature of pay-out commitment – fixed period, fixed amount, or lifetime
✔ Tax status – qualified or nonqualified
✔ Premium payment arrangement – single premium or flexible premium