Financial Education Center
Annuities for Retirement: Fixed and Fixed Indexed
Practical information to help you compare your options.
What is an annuity?
An annuity is an insurance contract that may offer tax-deferred accumulation, income options, or both. Product features vary.
Fixed versus indexed
A fixed annuity credits interest according to contract terms. A fixed indexed annuity credits interest using a formula linked to an index; it does not directly invest in the index.
Important considerations
Compare surrender periods, withdrawal limits, caps or participation rates, optional rider costs, income provisions, and insurer financial strength. Early withdrawals may have tax consequences.
Explore related topics
- Life Insurance in the USA: Understanding Your Options
- Term Life Insurance: Coverage, Cost and Trade-Offs
- Indexed Universal Life (IUL): How It Works
- Living Benefits in Life Insurance: What to Know
For general education only, not personalized advice. Policy terms, limitations, eligibility and product availability vary.