Frequently Asked Questions in Retirement
Straight answers to common questions about annuities, retirement income, fees, and access to your money—so you can understand your options and plan your next steps.
Explore the QuestionsYour questions deserve clear answers.
Explore these common annuity questions, then talk with our team about how the details apply to your retirement. Select any question to read the answer.
1. Can I lose money with a fixed indexed annuity?
A fixed indexed annuity generally protects against losses from a declining index. However, surrender charges, withdrawals, rider fees, or other contract adjustments can reduce what you receive. Guarantees depend on the issuing insurer’s claims-paying ability.
2. Will I pay annual management fees on my annuity?
Costs vary. Some fixed and fixed indexed annuities have no separate base-contract management fee, while optional riders may carry fees. Review the full cost structure, including surrender charges and how interest is credited.
3. Will my cash flow fluctuate with retirement annuities?
It depends on the contract and payout option. Some provide fixed income; others provide payments that can change. Ask which amounts are guaranteed and what could affect them.
4. What happens if one of us becomes ill or passes away?
Illness waivers and death benefits vary by contract. After income payments begin, benefits for a spouse or beneficiary depend on the payout option selected. Review eligibility, exclusions, and survivor provisions before choosing.
5. Can annuities provide income for the rest of my life?
Yes, with an appropriate lifetime payout option or benefit. Terms, costs, and withdrawal conditions vary. Insurer guarantees rely on its claims-paying ability.
6. Can retirement income grow with inflation?
Some annuity options offer increasing payments, but increases may not match inflation and can involve tradeoffs. Compare the starting income, increase formula, and costs.
7. Will I lose access to my money?
Access depends on the contract and whether you have begun income payments. Some contracts permit limited withdrawals without surrender charges. Larger withdrawals can trigger charges; taxes or tax penalties may also apply. Keep emergency needs in view.
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Learn more: Investor.gov annuity overview · NAIC Buyer’s Guide for Deferred Annuities (PDF)
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