Types of Annuities
RiverSource offers many types of annuities that can help provide the retirement income you need to live the life you choose and protect what matters most.
Annuities can be:
- Deferred
- Immediate
Deferred or immediate annuities can be:
- Variable
- Fixed
Deferred annuities
A deferred annuity has two phases: the accumulation, or savings, phase; and the payout, or income, phase. In a deferred annuity, you can benefit from tax-deferred growth as you save for retirement. You won't pay income tax on any growth until you choose to withdraw the money, if ever. Plus, you can save as much as you want and leave a death benefit for your heirs.
Most annuities have a tax-deferred feature. So do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax adviser prior to making a purchase for an explanation of the tax implications to you.
Immediate annuities
An immediate annuity can provide immediate and steady income for you in retirement. As you near retirement, you may want to transfer some money from a savings or investment account into an immediate annuity, which will provide monthly income right away. You can also transfer funds from a deferred annuity into an immediate annuity. An immediate annuity can help eliminate the risk of outliving your money.
Variable annuities
A variable annuity offers you the opportunity to take advantage of market gains over time. A variable annuity's rate of return changes along with the market, making it a valuable long-term investment tool. Variable annuities offer unique optional living benefit riders for an added fee, that may allow you to grow your savings, lock in market gains and guarantee income for life.
Fixed annuities
A RiverSource fixed annuity can provide a fixed rate of return and protect your original principal, which you’ve worked hard to earn. Fixed annuities guarantee a minimum interest rate based on which annuity you purchase. Consider a fixed annuity if you want the stability of a reliable return without the risk of market fluctuation.
A financial professional can help you decide which type of annuity will be best for your current needs, long-term financial goals and risk tolerance. All guarantees are based on the continued claims-paying ability of the issuing company and do not apply to the performance of the variable subaccounts, which will vary with market conditions.
Click here for important information about the variable annuity products including features and benefits.
All guarantees are based on the continued claims-paying ability of the issuing company and do not apply to the performance of the variable subaccounts, which will vary with market conditions.