Why Should I Consider a Fixed Immediate Annuity?

As you’re learning about options for your retirement, know that New York Life Insurance and Annuity Corporation is here to help.


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Many financial experts recommend adding a fixed immediate annuity (also called an income annuity) to help add more financial security to retirement. Here are some of the reasons why.

When you buy a fixed immediate annuity with part of your savings, you gain many benefits that other financial products don’t offer, including:

  • A steady source of retirement income that’s guaranteed to last a lifetime
  • Supplemental income to help maintain your lifestyle
  • Income that can often be higher than what you withdrawal from your account
  • Protection from the risks of investing in financial markets
  • A monthly income that never varies

Income You Can’t Outlive

How can you make your savings last during a retirement that could easily span 30 years? Since you can’t know how long you’ll live, you don’t know how much you can safely spend each month.

If you withdraw too much, you could run out of savings too soon. If you withdraw too little, you could unnecessarily deprive yourself of what you worked so hard to enjoy.

A fixed immediate annuity guarantees a reliable cash flow for the rest of your life — no matter how long you live.

Supplemental Income Can Fill the Income Gap

Social Security pays less than 40% of a typical person’s retirement income. That means that over 60% of your income may need to come from other sources.

  • Add up your monthly expenses and the income you can expect from Social Security, pensions and other guaranteed savings you can rely on for life.
  • You may see a gap between your guaranteed income and your monthly expenses. If so, you’ll need to fill it with a supplemental source that provides lifelong income, such as a fixed immediate annuity.
  • The money you use to purchase an annuity can come from sources like savings accounts and CDs or a 401(k) or IRA.
  • An annuity’s guaranteed income may be higher than the amount you would be comfortable taking from your savings each month, so you may have more income to meet expenses and maintain your lifestyle.

No Market Risk

A fixed immediate annuity pays an amount that will not vary from month to month. Because your annuity income isn’t exposed to changes in the investment markets or interest rates, you will always know exactly how much you’ll receive each month. This makes it easier for you to budget.

Guaranteed Income Security — for LIFE

Many Americans are living longer than past generations and need a steady income. In the past, people put their money in CDs or IRAs, but are realizing these options may not provide the return they need. A fixed immediate annuity guarantees to send an income check to you as long as you’re alive, even after the amount exceeds your original purchase amount.

Finally, a fixed immediate annuity can be a reliable way to add a predictable stream of lifelong income to your overall financial plan. Whether you buy one or several, you’ll have income you can count on no matter what.

Learn more about annuities in the New York Life Learning Center, or call 1-800-313-6841 to have your questions answered by a knowledgeable representative.

If you have questions, New York Life is here to help.


Monday - Friday: 8 a.m. to 6 p.m., Saturday: 9 a.m. to 5 p.m.