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What Everyone Over Age 50 Should Know About Annuities

Hint: among one of the few things in life that offer guarantees

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If you’re looking for a stable source of income during retirement, consider an annuity. As a savings tool backed by insurance companies, an annuity can be an attractive investment option for individuals over 50 as they approach retirement or during their retirement years.

Annuities also offer less risk than other investment vehicles. They aren’t subject to market fluctuations or recessions that can diminish the value of your stock, bond, or cash investments. Income from annuities can also ensure continued financial security if you live longer than expected and find your Social Security, pension, or other retirement funds aren’t providing enough income to live comfortably.

Take this simple True/False Quiz to learn more about annuities and explore how they could be an option for your impending or current retirement.

1. An annuity can provide guaranteed income and a guaranteed return for retirement. True or False?

TRUE. Guaranteed income is the most notable feature of an annuity contract. Many retirees benefit from the monthly payments annuities offer.

2. All annuities operate the same way. True or False?

FALSE. There are different kinds of annuities - fixed, income, indexed, or variable to meet different retirement needs. The important thing is to work with a trusted broker. They will work with you to find the annuity product that best meets your retirement income and tax needs.

3. There’s no way to know how much money you’ll receive in the future when you purchase an income annuity. True or False?

FALSE. With an income annuity, you can calculate your future payout. An income annuity offers guaranteed steady retirement income that continues for life through annualization.

4. You’re too young at age 50 to purchase an annuity. It’s better to wait until you’re in your late 60s or early 70s to buy one. True or False?

FALSE. People of any age can purchase an annuity and find annuities beneficial to their retirement planning. Your age, however, can help determine what type of annuity contract would work best for your particular financial situation.

5. It helps to work with a broker or marketplace that deals with several insurers and can show you the best rates for your age and type of payout. True or False?

TRUE. Since not all annuities are created equal, it pays to shop around. The new AARP® Annuity Marketplace powered by Blueprint Income allows you to shop and compare from a selection of top insurers.

Is an annuity the right choice for you? AARP members find out more by taking advantage of a free retirement income checkup through the AARP® Annuity Marketplace powered by Blueprint Income. The checkup can help you figure out if you’re on track to meet your retirement goals and determine which annuity is a good option for your current or future retirement plans.

Click here to see different annuity options at AARP® Annuity Marketplace powered by Blueprint Income and learn more about how an annuity can give you peace of mind in retirement.

Insurance products made available on the AARP® Annuity Marketplace powered by Blueprint Income are sold and serviced by Blueprint Income, a licensed insurance agency. AARP and its affiliates are not agents/producers and do not sell or service insurance products. Please contact Blueprint Income directly for full details. Blueprint Income pays a royalty fee to AARP for the use of AARP's intellectual property. These fees are used for the general purpose of AARP.

Annuities are distributed by Blueprint Income, LLC. Guarantees are subject to the claims-paying ability of the issuing insurer. Blueprint Income, LLC, is a licensed fixed annuity agency in all 50 states and the District of Columbia. Blueprint Income, LLC, does not advise clients on the purchase of non-fixed annuity products. The information presented here is not intended to be a recommendation to purchase a fixed annuity, immediate annuity, longevity annuity, or Qualified Longevity Annuity Contract. The contract features described may not be current and may not apply in the state in which you reside. Insurance companies often issue contracts that are “state-specific.” Insurance companies also change their products and information often and without notice. Annuities are subject to the terms and conditions of the specific contract issued by the insurer, are not FDIC or NCUA insured, are not bank guaranteed, may lose value, and are not a savings deposit product. Please call (800) 484-0469 if you have any questions or concerns. The information provided on this website is not written or intended as specific tax or legal advice. Blueprint Income employees and representatives are not authorized to give tax or legal advice. You are encouraged to seek advice from your own tax or legal counsel. You should always consult your own financial planning, tax, and legal advisors to determine if a fixed annuity, immediate annuity, longevity annuity, or Qualified Longevity Annuity Contract is appropriate for your financial situation.

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