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fixed annuities

Enhancing Retirement Income with Single Premium Immediate Annuities (SPIA)

Categories: Annuity Education, Immediate Annuities

An immediate annuity is one of the only products available to retirees that provide a guaranteed lifetime income. In other words, once you establish a life payout immediate annuity, the income payments last as long as you do and cannot be outlived.

When initially learning about immediate annuities, many individuals first impression is that it sounds too good to be true – an income stream that you can’t outlive? The truth is that immediate annuities can be an appealing solution for those who worry about running out of or depleting their retirement savings. A single premium immediate annuity (SPIA) is a great way to provide peace of mind by ensuring that your longer life is adequately funded.

To learn more about this worry free retirement income alternative, please watch this short video that provides a good overview of immediate annuities, along with their primary features and benefits:

By definition, an immediate annuity is a legally binding contract (policy) between you and an insurance company, where in return for your premium deposit; the insurance company contractually guarantees to provide you with an income payment at the frequency, and for the duration of time, chosen by you as specified in the contract. If you’d like to see what type of guaranteed income payments are possible, visit our Immediate Annuity Quote page, we’d be happy to provide you with a free comparison report showing the highest immediate annuity payouts in the country.

In addition to the single life annuity payment option, there are many ways to structure an immediate annuity; each enhancement, while usually lowering your monthly payout amount, provides you with additional benefits.

A popular enhancement for those with spouses or partners is to add a joint life annuity and survivor option. With this enhancement, payments will continue to the surviving spouse or partner after either of the parties’ deaths. You can also choose a guaranteed set period of time for your payments – for example 10, 15 or 20 years. If you die within this period certain time frame, the remainder of your payments are made to your named beneficiary. Also available are Cost of Living Adjustment (COLA) riders that you can add to your immediate annuity, where the payments increase by a fixed percentage annually to allow for inflation. For a more comprehensive discussion of the various payment term options, please visit our Immediate Annuities page.

With all of the available options when shopping for and structuring an immediate annuity, things can become confusing, and the sheer volume of choices can sometimes feel overwhelming. Not to worry, our Annuity Specialists are available to help guide you through the process and assist you in determining the most suitable immediate annuity and payment structure for your individual needs. There are never any fees, loads or charges for our services. So please give us a call, we’d be happy to help.