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Fixed Annuities

With a fixed interest rate, you’ll know how much guaranteed growth you can count on, no matter how the market performs.
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Next Steps

  1. We will review your request and get back to you within 24–48 hours.
  2. We will match you with a financial advisor that meets your needs.
  3. There is no obligation to buy at any time.
What is a fixed annuity?
A fixed annuity is a financial product that offers a fixed rate of return on your principal and provides you with a stream of retirement income that’s guaranteed for the rest of your life, or for a set number of years.

Depending on when you choose to start your payments, fixed annuities are classified as:

Immediate
Your retirement income payments will begin within a year after you purchase the annuity

Deferred
Your retirement income payments will begin in the future, usually when you retire
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Is a fixed annuity right for you?

Guaranteed retirement income
A fixed annuity can guarantee that you receive ongoing income payments starting in retirement and continuing for a specific time period or the rest of your life.
Fixed rate of return
A fixed annuity's value increases over time, based on a fixed interest rate. It is not affected by fluctuations in the market. A fixed annuity will have a guaranteed minimum interest rate as well as a current rate that may be higher.
Tax-deferred growth
Fixed annuity earnings are tax-deferred until you take money out of the product.
Standard death benefit
Most fixed annuities also offer a standard death benefit that is paid to your beneficiaries if you pass away before the annuity is depleted.
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How could a fixed annuity enhance your retirement strategy?
Let’s figure it out together. Our financial advisors can help you explore annuities and other options to help you determine what makes the most sense for you and your future.
Connect with us
I’m interested in learning more about
*Please select an advice option.
Who will we contact?

To learn more about the privacy of your information, visit our privacy policy.

What is your contact information?
Form Submission Failure

Unfortunately the form submissions has failed. Please go back and try submitting the form again or come back later and try again.

Illustration of a person trimming a tree shaped like a padlock
We’re excited to connect with you!

We'll be in touch soon.

Next Steps

  1. We will review your request and get back to you within 24–48 hours.
  2. We will match you with a financial advisor that meets your needs.
  3. There is no obligation to buy at any time.

Fixed annuity FAQs

Fixed annuities offer a guaranteed, predictable stream of retirement income and tax- deferred growth at a fixed rate.
How does a fixed annuity work?
A fixed annuity is purchased with one lump-sum payment or several periodic payments, depending on the type you choose. The value of the annuity grows at a set interest rate as defined by your contract. The guaranteed interest rate feature protects against the risk of market losses during times of volatility, but also limits the potential for higher gains. And while you’re saving for retirement, you’re earning interest on what you’d otherwise pay in taxes.

Once you’re ready to use your fixed annuity, you can choose how you’d like to receive your payout. You’ll have the option to get retirement income payments for a set number of years, for the rest of your life, or in one lump-sum payment. Once you start receiving your retirement income payments, they will be subject to income tax.

Keep in mind that if you need to access a portion of your funds before retirement, you can take withdrawals of up to 10% of your accumulated value annually, free of charges.
Who should consider a fixed annuity?
That depends on many factors including your age, financial goals, retirement plans, the amount of risk you’re comfortable taking on, and how long you expect to live.

If you’ve maxed out your allowed Roth IRA or 401(k) contributions but would like to keep building your retirement portfolio, a fixed annuity might be worth considering. Knowing you're getting a guaranteed return—and an ongoing income stream—can help build your confidence in your overall retirement strategy.
How can you use a fixed annuity?
You can use a fixed annuity as a foundational component of your retirement strategy. Because a fixed annuity has a fixed interest rate, you’ll know exactly how much income it will provide. And having a reliable source of income could help inform other aspects of your financial strategy.

For example, you might feel comfortable taking on other investments with higher risk when you’re confident that your fixed annuity income payments are guaranteed, regardless of how the market performs.
What are the risks of a fixed annuity?
Fixed annuities tend to pose less financial risk than variable annuities and other investment products whose values rise and fall with the market. But that doesn't mean they come with no risks at all.

You will know in advance how much you’ll receive from your fixed annuity, but you can’t predict the rate of inflation. Some payouts don’t get cost-of-living adjustments, so their buying power decreases over time. However, some payout options do adjust their income payments for inflation—or they offer that optional feature.

As with most annuities, if you want to withdraw money from your fixed annuity before the surrender charge period ends, you may incur a penalty charge—which could be hefty.

Finally, annuities are insurance contracts. That means their payouts are guaranteed by the insurance companies that issue them—not the FDIC, SIPC or any other federal agency. Look for firms with high marks from objective industry rating agencies such as AM Best, Fitch, Moody’s, and Standard & Poor’s.
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Want to learn more about your retirement options?

Our financial advisors offer personalized guidance to help create a financial strategy that's right for you.
If requested, a licensed insurance agent/producer may contact you and financial solutions, including insurance may be solicited.

Guarantees based on the financial strength and claims paying ability of Thrivent. 

Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
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