How Fixed Index Annuities Work [INFOGRAPHIC]

Use this simple guide to annuity basics to understand how these products can fit into your retirement journey.

Today’s retirement landscape is different from previous generations. The number of Americans ages 65 and older is projected to more than double from 46 million today to over 98 million by 2060, at which time the total age group’s share of the population will rise from 15 percent to 24 percent1. Moreover, Americans are enjoying longer lives and lengthier active retirements. As lifestyles change, so do retirement income concerns and needs as well as the solutions for meeting long-term goals.

For many Americans, fixed annuity products offer pre-retirees and retirees the types of benefits that can help ensure financial stability for the long haul. These retirement vehicles are one of the only products uniquely designed to provide a combination of benefits that protect hard-earned dollars, allow tax-deferred growth, provide increased interest opportunities and can guarantee lifetime income.

There are now 75 million Americans who rely on annuities and other insurance products for financial and retirement security.2 There are a variety of annuity products on the market that offer various options depending on your individual retirement goals. Speak with your financial professional to determine what type of product best suits your retirement planning needs.

Fixed Index Annuities and Retirement Income

Only fixed index annuities offer guaranteed protection from index decreases while also offering index-linked interest growth opportunities and the ability to generate a lifetime income source. To help explain how fixed index annuities work to provide ongoing financial stability, we prepared a fixed index annuity basics infographic that walks the path from initial contract premium to lifetime income payout.



Identify Retirement Income Needs and Income Guarantees

As you develop your retirement income plan, consider what guarantees will best help you reach your retirement goals. For many, principal protection along with an income source goes a long way toward defining a financially stable path through the golden years. 

To help you get started on exploring your retirement income opportunities, try our retirement calculator or speak with your financial professional.

 

 

1. Population Reference Bureau, "Aging in the United States,” Population Bulletin  Vol. 70, no. 2, 2015.
2. Americans to Protect Family Security, 2017. 
Guarantees are based on the financial strength and claims paying ability of American Equity and are not guaranteed by any bank or insured by the FDIC.
The information provided is for educational purposes only and does not constitute advice. For specific details on how this may apply to your personal situation contact your personal financial advisor or insurance agent for more details. American Equity contracts are only sold through independent agents. Please contact our home office Agency Services department at (888) 221-1234 option 3, or your state insurance department, to see if there is an independent insurance agent in your area appointed to sell American Equity annuity contracts.