A variable annuity is an insurance contract that allows you to accumulate assets on a tax-deferred basis to help meet your retirement goals. This means your money has the opportunity to grow faster, because you don't pay taxes on earnings until you actually withdraw them.
Similar to a fixed annuity, a variable annuity helps protect against the possibility of outliving your retirement savings. With a variable annuity, you choose how to allocate your premiums among a variety of stock- and bond-based subaccounts and fixed accounts.
The Benefits of a Variable Annuity
- Tax-Deferred Growth – You won't pay taxes on what your annuity earns until you start taking income, so your money may accumulate more quickly.
- Tax-Free Transfers – Since a variable annuity is a tax-deferred investment vehicle, you can transfer among subaccounts1 without paying taxes. You will, however, pay taxes when you withdraw the money from your contract.2
- Access to Your Money – You can withdraw up to 10% of your accumulated value each year without incurring surrender charges.2 And if you become terminally ill or need to access your money to move into a nursing home, surrender charges will be waived.3
- Flexible Income – You decide when and how to start taking income by choosing from among several payout options, including lifetime income.
- Basic Death Benefit – Upon your death, your beneficiary will receive your full account value, with no surrender charges.
Learn more about the Thrivent Financial Flexible Premium Deferred Variable Annuity.
Contact a Thrivent Financial representative to explore whether a variable annuity is the right addition to your retirement savings portfolio. He or she can provide you with information on features and costs.
Variable annuities are subject to market risk and sold by prospectus. The prospectus contains more complete information, including investment objectives, risk factors, surrender charges, fees and expenses, which should be carefully considered before investing.
Contract Forms: W-BC-FPVA (05) Series W-BC-FPVA ID (05)
Guarantees are backed by the financial strength and claims-paying ability of Thrivent Financial for Lutherans.
Investing in a variable annuity contract involves risk, including the possible loss of principal. More complete information on the investment objectives, risks, charges and expenses of the variable annuity contract and underlying investment options is included in the prospectuses, which investors should read and consider carefully before investing. Prospectuses are available from a Thrivent Financial representative or at Thrivent.com.
1 Transfers from the Fixed Account with a one-year guarantee are limited to the greater of $500 or 25% of the accumulated value, per contract year. Transfers from the 3-, 5- and 7-year Fixed Period Allocation accounts may be subject to a market value adjustment. Refer to the Thrivent Financial Flexible Premium Deferred Variable Annuity prospectus for information on how Market Value Adjustment is calculated.
2 Withdrawals will reduce your accumulated value and the amount of your future payouts. Any withdrawals in excess of 10% may be subject to a surrender charge. The taxable portion of each annuity distribution is subject to income taxation. If a taxpayer is younger than 59½ at the time of distribution, a 10% federal tax penalty will apply on the taxable portion of the distribution unless a penalty-tax exception applies.
3 Nursing home confinement waiver is not available in all states.
For a variable annuity, a fixed account is an investment subaccount into which contract owners can place money that will earn a guaranteed fixed rate of interest for a specified period of time.
One of several alternative pools of investments within an insurer's separate account into which a variable contract owner may allocate premiums paid. Also known as variable investment account and variable subaccount.
In investments, a portfolio is a diversified collection of various securities usually assembled by an investor for the purpose of meeting a defined set of financial goals.
The process of investing money in predetermined proportions in different types of assets to create a collection of assets with desired expected return and expected risk characteristics.