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Variable Annuities

With funds invested in sub-accounts tied to the market, you’ll have the opportunity to accumulate money – tax deferred. When you retire, you could turn that money into an income stream.
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  1. We will review your request and get back to you within 24–48 hours.
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  3. There is no obligation to buy at any time.
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What is a variable annuity?
A variable annuity is a financial product that has sub-accounts tied to the market. The performance of those investments will determine the amount of your retirement income payments.

Higher gains will likely translate into higher payouts, while lower gains—or losses—will likely result in smaller payouts. Variable annuities may be less predictable than fixed annuities, but they have the potential to deliver greater financial performance.

Because they are typically long-term growth platforms, they are classified as:

Deferred
Your retirement income payments will begin in the future, usually when you retire.

Variable annuity features

Investment growth potential
Variable annuities let you choose from a variety of investment options within your contract. Your investment performance is based on market performance.
Tax-deferred growth
Just like a 401(k) or traditional IRA, a variable annuity’s earnings are tax-deferred. That means they aren’t taxed while you’re contributing to it, and that may result in higher growth.
Retirement income
Like other annuities, a variable annuity could provide ongoing income payments during retirement.
Standard death benefit
Most variable annuities also offer a standard death benefit that’s paid to your beneficiaries if you pass away before your payouts begin.
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How could a variable 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.
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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 Notice at Collection for California Consumers or our privacy policy.

What is your contact information?
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Illustration of a person trimming a tree shaped like a padlock
We’re excited to connect with you!

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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.

Variable annuity FAQs

Variable annuities offer a stream of retirement income and tax-deferred investment growth potential based on market performance.
How do variable annuities work?
A variable annuity is an insurance contract that can turn your retirement savings into a guaranteed income stream. You may fund a variable annuity with a lump-sum contribution or a series of payments over time. Your premiums are then invested in subaccounts, which may have similarities to mutual funds. Those subaccounts can include stocks, bonds and money markets. At a point in the future, that annuity balance is what becomes your stream of income.
What are the pros and cons of variable annuities?
Variable annuities offer several advantages, including a guaranteed income stream in retirement, potential market returns, tax-deferred growth, and options for additional riders like a guaranteed lifetime withdrawal benefit. But there are some tradeoffs. Investment returns are not guaranteed with variable annuities. They may also have higher fees due to the additional features they offer.
What’s the difference between a variable annuity and a fixed annuity?
The key difference between variable and fixed annuities is that performance fluctuates due to the underlying investments of a variable annuity, while fixed annuities accumulate interest at a specified rate. With a variable annuity, your premiums are invested in subaccounts like stocks, bonds and money markets during the accumulation phrase. Higher returns will make for higher payouts once you annuitize, while losses typically result in smaller payouts. This differs from a fixed annuity, which allows your premiums to grow at a guaranteed rate of return. Your annuity’s value will be more predictable at the time you annuitize and begin receiving guaranteed payments.
What are variable annuity subaccounts?
Variable annuity subaccounts are the investment options within your contract (similar to mutual funds) that give your premiums potential for tax-deferred growth based on their performance.
How are variable annuities taxed?
Within your variable annuity, any earnings on the premiums you contributed will grow tax-deferred. Because of this, you won’t pay taxes on any earnings until you take the money out—whether you make a withdrawal, begin receiving guaranteed income, or a death benefit is paid out to your beneficiaries.
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Want to learn more about your retirement options?

Our financial advisors can offer personalized guidance to help create a financial strategy that’s right for you.
Investing involves risk, including the possible loss of principal. The prospectus and summary prospectuses of the variable annuity contract and underlying investment options contain information on investment objectives, risks, charges and expenses, which investors should read carefully and consider before investing. Available at Thrivent.com.

Holding an annuity inside a tax-qualified plan does not provide any additional tax benefits.

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

Riders are optional and available for an additional cost.

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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