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Home / Planning / Annuities
Annuities & retirement income

Turn savings into income you can plan around.

An annuity is a contract with an insurance company that can turn part of your savings into income, now or later. Annuities aren't right for everyone. Our licensed agents start with your goals and finances, and only recommend one if it's in your best interest.

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How it works

Two phases of an annuity

Phase 1

Accumulation

You pay a lump sum or a series of payments. In a deferred annuity, the money can earn interest on a tax-deferred basis, depending on the contract.

Phase 2

Income

You can choose to turn the value into a stream of income, for a set period or for life, depending on the options in your contract.

Types

Common types of fixed annuities

We offer fixed and fixed indexed annuities only.

Fixed (MYGA)

A fixed interest rate for a set number of years, declared by the insurance company.

Often considered for: predictability

Fixed indexed

Interest is linked to a market index, with limits such as caps or participation rates, and protection from index losses. Not invested directly in the market.

Often considered for: growth potential with protection

Immediate income

Converts a lump sum into income that starts within about a year.

Often considered for: income starting now

Deferred income

You buy now and income starts at a future date you choose.

Often considered for: planning future income
Honest look

Benefits and trade-offs

Potential benefits

  • Income options that can last for life
  • Tax-deferred growth in deferred annuities
  • Fixed and fixed indexed annuities aren't exposed to direct market losses
  • Death benefit options for beneficiaries

Things to weigh

  • Surrender charges if you withdraw more than allowed in early years
  • Your money is less liquid than in a savings account
  • Withdrawals before 59½ may face a federal tax penalty
  • Indexed returns are limited by caps and participation rates
  • Optional riders add cost
Your best interest

Is an annuity right for you?

Before recommending any annuity, we're required to gather information about your situation and make sure the recommendation is in your best interest. That means we'll ask about:

  • Your age, income, and other assets
  • Your goals and time horizon
  • How much access to your money you need
  • Your tax situation and existing products
  • How comfortable you are with risk

If an annuity isn't the right fit, we'll tell you.

Free-look periodYou typically have a set number of days after purchase to review the contract and cancel.
Surrender periodThe years when larger withdrawals may cost a surrender charge.
Free withdrawalsMany contracts allow a portion to be withdrawn each year without a surrender charge.
RidersOptional features, like income or death benefit riders, usually for an added cost.
Free retirement income review

See where your income will come from

We'll look at your expected income sources and expenses, and talk through whether an annuity could fill a gap. No obligation.

  • A plain-English look at your options
  • No rates quoted until we understand your situation
  • Works alongside your financial or tax professional

Book a retirement income review

A licensed agent on our team will call you within one business day, 9am–8pm ET.

We never sell your information.

FAQ

Annuity questions

What rates do your annuities pay?

Rates change often and depend on the company, product, amount, and term. We don't publish rates; we'll show you current options after we understand your goals.

Can I lose money in an annuity?

Fixed and fixed indexed annuities aren't exposed to direct market losses, but surrender charges, a market value adjustment, or rider fees can reduce what you get back if you withdraw early. We'll review all of this before you decide.

Are annuity guarantees backed by the government?

No. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. State guaranty associations provide limited protection; ask us for details.

Can I get my money out?

Most contracts allow some free withdrawals each year. Larger withdrawals during the surrender period may cost a charge, and withdrawals may be taxable.

Should I move my IRA or 401(k) into an annuity?

It depends on your situation. Moving money has trade-offs. We'll review it with you, and we encourage you to involve your tax or financial professional.

Annuity disclosures: Annuities are long-term insurance contracts designed for retirement. Guarantees are subject to the claims-paying ability of the issuing insurance company. Annuities may have surrender charges, market value adjustments, and fees for optional riders. Withdrawals may be subject to ordinary income tax and, if taken before age 59½, a 10% federal tax penalty. Fixed indexed annuities are not securities and do not directly participate in any stock or equity investment. Sun State Partners does not provide tax or legal advice.
Free, no-pressure help

Let's plan income you can count on.

A free, no-pressure retirement income review with a licensed agent on our team.

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