Immediate Annuity (SPIA) Retirement income, explained.
Turn part of your savings into a regular retirement paycheck.
Immediate Annuity (SPIA)
A single premium immediate annuity exchanges a lump sum for regular payments that generally begin within a year. Payments can last for one lifetime, two lifetimes or a set period. Your payout choice affects the amount you receive and what remains for beneficiaries.
How this annuity works.
Is this for you?
Plain language answers.
Usually you give up access to the lump sum in exchange for payments. Some contracts offer limited access or refund provisions. Review those terms before funding.
It depends on the option selected. Life only payments generally stop at death. Joint life, period certain or refund options may continue benefits and usually reduce the starting payment.
Level payments do not. Some contracts offer increasing payments, usually with a lower initial amount. We can compare that trade off.
Annuities are long term insurance contracts. Guarantees depend on the issuing insurer's ability to pay claims. Fees, surrender charges and withdrawal limits may apply. Taxable withdrawals before age 59½ may face an additional 10% federal tax. An annuity inside an IRA or other account with tax deferral provides no additional tax deferral. Product availability varies by state and carrier. This is general education, not personalized tax or investment advice.
Other annuity options to compare.
Ready to explore your annuity options?
Tell us about your retirement plans. We will talk through the options, costs and tradeoffs with you.