Annuities
Annuities & Tax-Efficient Retirement Strategies
Lifetime Income You Can Count On
Annuities are powerful tools to guarantee lifetime income and protect principal. When combined with tax planning, annuities can produce predictable income streams while preserving legacy capacity.
What is an Annuity?
An annuity is a financial product offered by insurance companies that provides the security of predictable income and the opportunity for steady growth. Designed primarily for retirement planning, annuities can help create a reliable stream of income that lasts as long as you do.
At their core, annuities are insurance contracts with specific guarantees. When you follow the contract terms, you receive income and protections designed to meet your unique retirement needs.
How Annuities Work
Creating guaranteed retirement income is a simple process:
Step 1
Choose the annuity type that best aligns with your financial goals.
Step 2
Pay your premium, either as a lump sum or through multiple contributions.
Step 3
Begin receiving payouts according to your contract’s terms — monthly, annually, or for life.
How does an annuity work?
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Some annuities are funded with a single contribution, while others allow ongoing payments over time. When you’re ready to begin withdrawals (also called the “distribution phase”), your payouts will be based on factors like your age, account value, and the specifics of your contract.
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What an Annuity Can Do for You
Annuities are a powerful tool for individuals preparing for retirement. They allow you to balance the need for long-term growth with the security of guaranteed income.
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Tax-Deferred Growth
Your money grows tax-deferred, meaning you won’t pay taxes until withdrawals begin, allowing savings to compound more efficiently.
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Growth Potential
Certain annuities offer opportunities to benefit from market performance, helping your retirement assets grow while managing downside risk.
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Risk Management
By protecting against market downturns, annuities reduce volatility and safeguard your retirement income.
When to Consider an Annuity
Saving for Retirement
Already maxing out your 401(k) or IRA? Annuities provide an additional way to grow wealth on a tax-deferred basis.
Focused on the Long Term
If you don’t need immediate access to funds before age 59½, annuities help lock in future security.
Concerned About Outliving Savings
With guaranteed lifetime income, annuities ensure you won’t run out of money, even if you live past 100.
Planning a Legacy
Many annuities include death benefits, giving you the ability to pass wealth to loved ones.
Are Annuities a Good Fit?
Annuities are specifically designed to protect against longevity risk — the possibility of outliving your assets. Beyond lifetime income, they can also provide tax advantages, legacy benefits, and the flexibility to customize your retirement strategy.
Because annuities are contracts, it’s important to review the terms and benefits carefully. A financial professional at Berger Agency can help you compare options and choose the annuity that fits your goals.
Columbus Life Insurance Company
Founded in 1908 A+ A.M. Rating
National Life Group
Founded in 1848 • A+ Rated (A.M. Best)
Fidelity & Guaranty
Mutual Of Omaha
Founded in 1909 • A+ Rated (A.M. Best)
Americo
American Amicable
Founded in 1910 • A Rated (A.M. Best)
Athene
Founded in 2009 A+ Rated (A.M. Best)
North American
Founded in 1886 A+ Rated (A.M. Best)