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ANNUITIES BUILT FOR RETIREMENT

Choose the annuity that protects your income for life

Three guaranteed ways to grow and protect your savings — without exposure to market swings. Lock in a competitive rate today, keep your principal safe, and leave more to the people you love.

Compare your options

Key Takeaways

  • An annuity is a contract with an insurer that guarantees your money's growth — and can turn it into income you can't outlive.
  • A Traditional annuity keeps your savings flexible; a Retirement annuity grows tax-deferred for the long haul.
  • An Income Payout annuity converts your balance into predictable monthly checks for life.
  • All three protect your principal from market losses — the right choice depends on when you'll need the money.

COMPARE SIDE BY SIDE

Your top three annuity options

Same safety. Same guarantees. Pick the structure that fits where you are in retirement.

Traditional

Flexible, principal-protected savings you can reach before retirement.

GUARANTEED RATE

4.75%–5.45% APY

  • Taxable — not tax-deferred
  • Flexible goals: a safety net, a major purchase, education
  • Access before age 59½ without IRS early-withdrawal penalties
  • Avoid being bumped into a higher bracket at term's end
OPEN A TRADITIONAL ACCOUNT

Retirement

Tax-deferred growth to build your nest egg for the long term.

GUARANTEED RATE

5.10%–6.00% APY

  • Tax-deferred growth until you withdraw
  • Purpose-built for dedicated retirement savings
  • Roll over a 401(k) or IRA with no tax hit today
  • Ideal if you expect a lower tax bracket when your term is over
OPEN A RETIREMENT ACCOUNT
MOST POPULAR FOR RETIREES

Income Payout

Turn your savings into guaranteed monthly income for the rest of your life.

GUARANTEED INCOME

For life—monthly

  • Predictable income you cannot outlive
  • Favors structure and certainty over flexible access
  • Best when you're ready to draw income now
  • Death-benefit portion generally passes to heirs tax-free
START AN INCOME PAYOUT

Rates shown are illustrative and vary by term, age, and state. All guarantees are backed by the claims-paying ability of the issuing insurer.

Not sure which one fits your retirement?

Answer a few questions and a licensed specialist will walk you through the option that best protects your income and your heirs — no cost, no obligation.

TALK TO A SPECIALIST COMPARE AGAIN
Your situation Recommended option
Want flexible access before 59½ Traditional
Rolling over a 401(k) or IRA Retirement
Ready for steady income now Income Payout
Leaving more to your heirs Any of the three

THE BASICS

What is an annuity?

An annuity is a contract between you and an insurance company. You pay either a single lump sum or a series of contributions, and in return the provider pays you a stream of guaranteed income — either right away or starting on a date you choose.

The appeal is predictability. Unlike investments tied to the daily market, the right annuity can deliver income you can count on month after month, including income that lasts as long as you live.

Different products balance growth, protection, and access in different ways, so the best fit depends on when you need income, how much risk you're comfortable with, and what other retirement savings you already have in place.

Annuities may be a good fit if you:

  • Want guaranteed income you can't outlive in retirement
  • Are within 10 years of retirement and want to lock in rates
  • Want to protect savings from sudden market downturns
  • Are looking for tax-deferred growth on retirement dollars
  • Have already maxed your 401(k) or IRA contributions

THE CASE FOR ANNUITIES

Why more people are turning to annuities

As traditional pensions disappear and markets stay unpredictable, more Americans want one thing above all in retirement: income they can't outlive. That's driving record demand for annuities — and a growing body of research explaining why they work.

Annuities are replacing the vanishing pension

With fewer employers offering pensions, retirees are recreating that "guaranteed paycheck" on their own. Money's reporting shows annuity sales climbing to record highs as savers convert part of their nest egg into steady, lifelong income — the same security a pension once provided.

Source: Money.com

Research shows it can boost retirement income

An analysis highlighted by Money found that pairing a guaranteed-income annuity with a normal withdrawal plan can lift total retirement income by roughly 23% — because payouts from top annuity providers can run well above the traditional 4% withdrawal rule. For many savers, that means the same income from less money.

Source: Money.com

See the Income Payout option

A guaranteed-income floor can beat bonds

Retirement researcher Wade Pfau argues income annuities can outperform bonds for the "income floor" of a retirement plan: they deliver guaranteed checks for life regardless of interest-rate swings, remove the constant reinvestment decisions bonds require, and free you to invest the rest of your savings more confidently for growth.

Source: Money.com

Protection when markets get rocky

Annuities protect your principal from market losses while delivering predictable income — which is exactly why interest spikes when markets turn volatile. Yet only about one in ten older Americans own one, often because the products feel complex. Comparing your options is the easiest place to start.

Source: Money.com

Get your income quote

WHY MONEY.COM

Why Compare With Money.com

We've helped millions of readers make smarter financial decisions for more than 50 years. Here's what that means when you compare annuity rates with us.

Expert-Vetted Partners

Every provider on our list is reviewed for financial strength and customer satisfaction before we show them to you.

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Quotes in Minutes

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Trusted Financial Authority

Money.com has guided readers on saving, investing, and retirement planning for over five decades.

FAQ

Frequently Asked Questions

Answers to the questions buyers ask most before choosing an annuity.

01 What is an annuity?
An annuity is a contract with an insurance company. You contribute either a lump sum or ongoing payments, and the company agrees to pay you a guaranteed stream of income later — often for the rest of your life.
02 How are annuity earnings taxed?
Earnings inside an annuity grow tax-deferred — you don't pay taxes on the growth until you withdraw it. Withdrawals of earnings are taxed as ordinary income, and withdrawals before age 59½ may face an additional 10% IRS penalty.
03 What's the difference between fixed and variable annuities?
A fixed annuity pays a guaranteed interest rate and protects your principal from market losses. A variable annuity's value rises and falls with the investments you choose — more growth potential, but market risk. Fixed indexed annuities sit in between: growth tied to a market index with built-in downside protection.
04 When can I start receiving payments?
It depends on the product. Immediate annuities can begin paying income within about a month of purchase, while deferred annuities let your money grow first and start payments on a future date you choose. Withdrawing earnings before age 59½ may trigger a 10% IRS penalty.
05 Is my principal guaranteed?
With fixed and fixed indexed annuities, your principal is protected from market losses, and guarantees are backed by the claims-paying ability of the issuing insurer. Variable annuities don't guarantee principal unless you add an optional rider. Always review the contract and the insurer's financial strength.

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Ready to turn coverage into lasting income?

See how an Ethos policy can pay your loved ones guaranteed income, get your personalized quote now.

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Money does not issue annuities. Products are offered through licensed insurers; guarantees are subject to the issuer's claims-paying ability. This page is for educational purposes and is not financial advice.

The Traditional and Retirement options shown are Gainbridge® annuities issued by Gainbridge Life Insurance Company. The Income Payout option is offered through Ethos. Rates are illustrative, subject to change, and vary by term, age, and state. Withdrawals before age 59½ may be subject to IRS early-withdrawal penalties. All guarantees are based on the financial strength and claims-paying ability of the issuing insurer.