Are There Any Good Annuities?

Published July 15, 2019

Yes, there are good annuities out there, but it’s important to do your research to make sure you get one of them.

Originally annuities only existed to provide a pure guarantee, whether guaranteed income or a guaranteed return. Over time, a few different types of annuities have been created with different value propositions, demoting the guarantee to a feature instead of the core function. We believe good annuities are the simple ones that still only provide the purest form of guaranteed income or guaranteed growth. Guaranteed income is best provided via an immediate annuity (income starting within 12 months) or a longevity annuity (income starting in more than a year). Guaranteed growth is best provided via a fixed annuity that acts in many ways like a longer-term CD (except it’s backed by the claims-paying ability of the insurer, rather having an FDIC backing).

To get real-time personalized quotes with our annuity calculator click here, and to see current fixed annuity rates view our online marketplace here.

If you’re interested in reading more, here are several articles on good annuities.

Interested in getting more of these insights delivered right to your mailbox? Sign up for our newsletters.

Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.

Related Articles

Annuity Basics

Annuities 101 — Annuity Basics for Beginners

An annuity is guaranteed lifetime income that reduces the likelihood that you’ll run out of money in retirement. Income from an annuity is predictable, steady, and cannot be outlived. This Annuities 101 article provides an overview of annuities and links to resources that will help you decide if an annuity is right for you.

Immediate Annuities

What’s an Immediate Annuity?

The immediate annuity (sometimes also referred to as a Single Premium Immediate Annuity or SPIA) is a pension-like product you can buy for yourself from an insurance company using your retirement savings. An immediate annuity generates a guaranteed income stream that lasts as long as you do with income starting no more than a year from your purchase. It’s a way to diversify your portfolio, and make sure that all, or most, of your basic retirement expenses will be covered for as long as you live.

Longevity Annuities

What’s a Longevity Annuity?

A longevity annuity is like a pension you can buy for yourself from an insurance company using your pre-tax or post-tax retirement savings, generating a guaranteed income that lasts as long as you do. It’s a great way to diversify your portfolio, and make sure that all, or most, of your basic retirement expenses will be covered for as long as you live.