What is an annuity?
Annuities provide insurance against the risk of outliving your money after you stop working. You get the potential to grow your savings and create a guaranteed income for life so you can retire your way.
While they seem to function as an investment (that is, you put your money in and accept the risk of whether it increases or decreases), many are actually insurance contracts. In general, if you follow the rules of the contract, you receive certain guarantees in return.
What can an annuity do for you?
Tax-deferred growth
Annuities help you increase savings because you won’t pay taxes on growth until you withdraw money.
Growth potential
An annuity has the potential to grow your money while also helping manage the risk of loss.
Manage risk
Annuities provide a level of protection to help manage market risk.
When you might need an annuity
If you’re in one or more of these situations, an Athene annuity might be exactly what you need.
- You’re saving for retirement
If you’re already contributing the maximum to other retirement plans, like an IRA or 401(k), an annuity is an attractive retirement planning option that grows tax-deferred. - You won’t need the money soon
If you don’t anticipate needing money from savings prior to turning 59 ½, then an annuity may be a good option for you. - You’re worried you might outlive your savings
Annuities can provide guaranteed income for the rest of your life, whether you live to be 100 or even 120. It could happen. - You want to leave a legacy
With an annuity, you can provide your loved ones with a death benefit in the event of your death.
Different types of annuities
Annuities come in different types to meet different needs. One of the ways they vary is by the amount of potential risk and return.
Immediate annuities have less risk and lower return because they simply convert an amount of money into a guaranteed stream of income.
The annuities with increasing risk and return are generally used to accumulate money over time. Because they don’t provide immediate income, they’re known as deferred annuities.
Fixed Indexed Annuities (FIAs)
Pursue growth potential without sacrificing security.
With fixed indexed annuities, the interest rate on a portion of your premium is tied, in part, to a published stock market index, giving you the opportunity to benefit from market trends without owning stocks. Your principal is protected from loss due to market downturns. Fixed indexed annuities may also include or offer optional riders that can be purchased or automatically attached to the annuity for a charge. Rider features vary by product, and can offer benefits like lifetime income, increased liquidity, or a death benefit option.
Registered Index-Linked Annuities (RILAs)
Pursue growth opportunities while enjoying a level of protection from market risk.
Registered index-linked annuities provide exposure to a published stock market index along with a level of protection from market loss. While this kind of annuity tracks the movement of an index, it does not directly invest in any stock or equity vehicle. Because you assume some of the risk of loss from market downturns, a registered index-linked annuity may allow for greater growth potential than other annuities.
Fixed Annuities
Protect and grow your savings. Plan with confidence.
Fixed annuities provide you with tax-deferred growth at a fixed rate of interest set by the carrier for a period of time specified in the annuity contract. They also offer the opportunity to produce a guaranteed stream of retirement income you cannot outlive.
Immediate Annuities
Income you can count on.
Immediate annuities make retirement planning easier because they’re predictable. In exchange for a lump sum of money, an immediate annuity pays a guaranteed amount for a specified time period, including as long as you or your spouse live.
