An Annuity is the simplest retirement income option.

The income payments you receive are made up of interest and principal and are determined based on:

  • Your age (and in certain cases, your spouse’s age), for life annuities
  • Current interest rates
  • The length of time the payments are guaranteed
  • The amount of money used to purchase the annuity
  • Your Health

Annuities can be compared to many pension plans where a fixed amount of money is paid to the account holder each month.  Careful consideration must be exercised as annuities provide the most security of any income vehicle, but also have the strictest limits on withdrawals.