An annuity doesn’t have to be your whole retirement plan.
The amount—if any—should follow a review of your complete financial picture. There is no universal percentage.
Start with the need, then consider the amount.
An annuity doesn’t have to be your whole retirement plan. Some people may have no appropriate annuity need. Others may benefit from a modest protected-income allocation. Someone else may have a larger income-planning need.
There is no universal percentage. The decision depends on your income, expenses, assets, liabilities, debt, time horizon, liquidity, risk tolerance, retirement and legacy goals, health and longevity considerations, and existing resources such as Social Security, pensions, and other investments.
Someone with substantial existing pension income and limited liquidity may have very different needs from someone with a large income gap and accessible assets. The same allocation is unlikely to suit both simply because they are the same age.
Leave room for flexibility.
Consider emergencies, planned large purchases, inflation, and investment resources outside the contract. A protected-income allocation should not inadvertently leave the rest of the plan unable to respond to change.
Annuities are long-term insurance contracts and are not suitable for everyone. Surrender periods, surrender charges, withdrawal restrictions, fees, and tax consequences may apply. Guarantees are subject to contract terms and the claims-paying ability of the issuing insurance company. Product features and availability vary by carrier and state.
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Tell us what matters to you. We’ll begin with your goals, your needs, and the questions on your mind.