Fixed Annuities
How fixed annuities work
A fixed annuity is a type of annuity contract that typically offers a set, guaranteed rate of return over a defined period. It's one option some people consider when they want predictable growth and income in retirement — but it comes with trade-offs, and it may not be suitable for everyone.
How They Work
Predictable, but with trade-offs
With a fixed annuity, the insurance company generally agrees to credit a set interest rate for a specified period. That can make the growth and income more predictable than with variable products. The guarantees depend on the issuing insurance company.
In exchange, you may give up access to your money for a time, and surrender charges may apply if you withdraw funds early. Terms, fees and guarantees vary by product and carrier.
Things to Weigh
Considerations before deciding
A fixed annuity may appeal to people who value predictability and are comfortable tying up some of their money for a set period. It may make less sense if you need flexibility or are seeking higher growth potential.
We help you understand the specifics so you can decide whether a fixed annuity fits your goals — without implying it's the right choice for everyone.
- Generally offers a set, guaranteed rate over a defined period
- Guarantees depend on the issuing insurance company
- Surrender charges and limited access may apply
- Suitability depends on your goals and overall finances
Wondering if a fixed annuity fits?
A free conversation can help you understand the specifics and whether it's right for you.
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