As you approach retirement, the focus may begin to shift from accumulating assets to determining how your savings can help support your income needs.
From accumulation to income
During your working years, the focus is often on saving and investing. In retirement, planning may also include determining how and when to draw income from your available resources.
An additional source of retirement income
Depending on the contract and options selected, certain annuities can provide income for a specified period or for life.
Balancing income, growth, and access
An annuity may be one component of a broader retirement strategy alongside Social Security, retirement accounts, investments, cash reserves, and other assets.
Understanding the trade-offs
Annuities vary widely and may include fees, surrender charges, withdrawal restrictions, tax considerations, and other contract provisions. Features and guarantees depend on the specific product.
Is an annuity appropriate for your retirement strategy?
That depends on your individual goals, income needs, time horizon, liquidity needs, risk tolerance, and other financial resources. Understanding the available options can help you have a more informed conversation about your retirement income strategy.