Annuities for Retirement Planning
No matter who you are, planning for retirement can be challenging. Annuities may help eliminate the guesswork.
They offer options to help you save for retirement and turn your assets into a steady income stream when the time is right. You decide when and how to take income.
If you're looking for a way to transform an amount of money – like an inheritance or IRA rollover – into income that can last the rest of your life, consider an immediate annuity.
- Several income payout options.
- Payouts begin immediately.
- May pay a death benefit to the people or causes you care about.
Deferred annuities may help you achieve your retirement savings goals. You won't pay income taxes until you start taking money out and you get a minimum guaranteed interest rate on fixed annuities. You can choose how and when to receive your income from several payout options, including lifetime income.
- Options to lock in a future income stream – now or later.
Fixed: How it works
Fixed annuities earn interest at a set rate. Every fixed annuity has a current interest rate and a minimum guaranteed interest rate. The current interest rate is usually declared on an annual basis.
Fixed annuities are not affected by ups and downs in the market. Plus, they also guarantee a minimum interest rate.
Since fixed annuities are credited interest at a set rate, it is possible that the value of the annuity will not keep pace with inflation.
Variable: How it works
Variable annuities earn investment returns based on the performance of the subaccounts chosen.
Because funds are invested in variable subaccounts, they may keep up with – or even outpace – inflation.
"We're outdoor enthusiasts and into sports. When we stop working, our plan is to be able to replace part of our current income and still continue with our active lifestyle. We don't want to miss a beat."*
* The member's experience may not be the same as other members' and does not indicate future performance or success.
Annuities are intended to be long term, particularly for retirement. Product availability and features may vary by state.
Withdrawals and surrenders will decrease the value of your annuity and, subsequently, the income you receive. 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 to the taxable portion of the distribution unless a penalty-tax exception applies.
Investing in a variable annuity involves risk, including the possible loss of principal. The prospectus contains more complete information on the investment objectives, risks, charges and expenses of the variable annuity contract and underlying investment options, which investors should read and consider carefully before investing. Prospectuses are available from a Thrivent Financial representative or at Thrivent.com.
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