Lifetime Retirement Income with an Immediate Annuity
With immediate annuities, the guaranteed payments start right away, usually within one year of the premium payment. Immediate annuities are an ideal way to make sure your retirement savings last your entire lifetime.
Retirement Income You Can Count On
Retirees will often make a single lump sum payment to an insurance organization like WoodmenLife, and in turn, the organization will make a pre-determined monthly payment back to the member. Many WoodmenLife members find it easier and less stressful to manage their household expenses through a regular income stream, just like they did while they were working.
WoodmenLife Offers Three Types of Immediate Annuities
- Non-life immediate annuity1 – you choose a payment period between 10 and 50 years. Payments may vary based on the current interest rate. Payments will never be less than the minimum guaranteed rate of 1 percent.
- Life income fixed payment annuity2 – A payment will be paid each period for a fixed number of years and after that, for as long as the annuitant lives. The fixed number of years can vary from 0-20. Payments will remain fixed for the life of the annuitant. If the annuitant dies before the fixed period ends, payments continue to the beneficiary.
- Life income varied payment annuity3 – A payment will be paid each period for a fixed number of years and after that, for as long as the annuitant lives. The fixed number of years can vary from 0-20. Payments can vary depending on refunds declared but will not be less than the guaranteed payment. If the annuitant dies before the fixed period ends, payments continue to the beneficiary.
Immediate Annuity Advantages
- Guaranteed income stream – You can count on regular monthly checks for the rest of your life when you buy an immediate annuity. This can help with your budget and can ensure you are able pay your monthly bills, and can also guarantee that you won’t outlive your retirement savings.
- Higher interest than other savings vehicles – In many cases, the monthly payments you receive from your immediate annuity can yield greater returns than other options in today’s low-interest-rate environment.
- Generous investment guidelines – Generally, there are no contribution limits on annuities. This can be especially advantageous if you’ve fallen behind in investing for your later years, or if you’re looking to minimize taxes while investing for retirement and have contributed the maximum amounts to other tax-advantaged accounts. Unlike other retirement vehicles, annuities may allow you to contribute even after you’ve retired and whether you have earned income or not.