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.
What is an annuity?
An annuity is a contract you purchase from an insurer. When you purchase an annuity, the insurer agrees to repay your money – plus interest or any earnings – either in a lump sum or over a period of time you select.
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. When you die, proceeds from the death benefit may pass directly to the people or causes you care about.
- Several income payout options.
- Payouts begin immediately.
- Proceeds from the death benefit may pass directly 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.
- May pay a death benefit to the people or causes you care about.
- Options to lock in a future income stream – now or later.
- Income-tax-deferred growth.
Deferred income annuities
There is a type of deferred annuity, called a deferred income annuity, that is designed solely to create a guaranteed future income. In exchange for higher income payments later, you give up liquidity. With deferred income annuities, you receive guaranteed income payments for the rest of your life.1
- Start taking income payments when you want via several payout options.
How to choose between immediate or deferred annuities
Ask yourself these questions: Do I need income now or later? Do I need access to my money? Deferred annuities help provide income you may need later in life. Immediate annuities can help you turn a lump sum of money into an income right away.
Contact a local Thrivent Financial representative for help
"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 representative of the experience of other members. This story is also not indicative of 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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