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.
Unlike life insurance, which protects loved ones in the event of your death, annuities protect you against the risk of outliving your retirement savings. With the right annuity strategy, you can grow your wealth and secure guaranteed lifetime income — giving you the freedom to retire with confidence.While Social Security and pensions provide some guaranteed income, they often fall short of covering long-term expenses or keeping up with inflation. Annuities can bridge that gap, offering both stability and growth potential.
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?
- 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
Annuities may be right for you if you are:
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.
Are Annuities a Good Fit?
Different annuity products cater to different needs. Some prioritize immediate income, while others are designed for long-term growth.
Single Premium Immediate Annuities (SPIAs)
Income you can count on
With a lump sum payment, a SPIA provides guaranteed payments right away — either for a fixed term or for the rest of your life. This is an excellent choice for those seeking predictability in retirement.
Fixed Annuities
Stability and guaranteed growth.
Fixed annuities grow at a set interest rate and provide reliable income for retirement. They combine tax-deferred accumulation with guaranteed income that cannot be outlived.
Fixed Indexed Annuities (FIAs)
Balance of growth and protection.
FIAs tie interest growth to a market index, giving you the chance to benefit from stock market trends while protecting your principal from losses. Many FIAs also offer riders that add benefits like lifetime income or enhanced liquidity.
Registered Index-Linked Annuities (RILAs)
Growth potential with partial risk protection
RILAs offer exposure to market indices but include a level of downside protection. They carry more risk than fixed annuities but can deliver stronger growth potential over time.
Variable Annuities (VAs)
For those with higher risk tolerance
Variable annuities allow direct investment in sub-accounts similar to mutual funds. While they offer the greatest growth potential, they also involve the highest risk. These products are best suited for investors comfortable with market fluctuations
Some of Our TrustedCarrier Partners 
Columbus Life Insurance Company
Founded in 1908 A+ A.M. Rating
National Life Group
Founded in 1848 • A+ Rated (A.M. Best)
Fidelity & Guaranty
Founded in 1959 • A Rated (A.M. Best) 
Mutual Of Omaha
Founded in 1909 • A+ Rated (A.M. Best)
Americo
Founded in 1946 • A Rated (A.M. Best) 
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)