Safe Fixed Annuity Options
Over 100 Carriers to Quote From. Here are a few of them!
Safe fixed annuity options help retirees and pre-retirees protect principal, earn predictable interest, and convert savings into guaranteed income when needed. We compare contracts from 100+ highly rated carriers, so you can see the best blend of safety, growth, liquidity, and future income for your plan—without market risk.
Lifetime Income Calculator
What Counts as a “Safe” Fixed Annuity?
“Safe” typically means principal protection plus clearly defined growth or income guarantees. Two categories lead the way:
- MYGAs (Multi-Year Guaranteed Annuities): CD-style annuities that credit a fixed rate (e.g., 3–10 years). No market risk, no annual fees, and tax-deferred growth. Great for parking cash you can’t afford to lose.
- Fixed Indexed Annuities (FIAs): Principal is protected from market losses while growth is tied to an index with caps/participation rates. You can add an optional lifetime income rider for guaranteed paychecks later.
Why Retirees Choose Safe Fixed Annuity Options
- Principal Protection: Avoid sequence-of-returns risk and market drawdowns.
- Predictable Planning: MYGAs provide a guaranteed rate; FIAs provide downside protection with defined crediting rules.
- Tax-Deferred Growth: Interest compounds without current-year taxation in non-qualified accounts.
- Guaranteed Income (Optional): Many FIAs offer lifetime income riders for a personal pension when you’re ready.
Quick Examples (For Illustration)
- MYGA Parking Strategy: $300,000 in a 5-year MYGA at a guaranteed rate credits interest annually with no market risk. You can ladder terms for ongoing access.
- Protected Growth + Future Income: $400,000 in a fixed indexed annuity grows with an index strategy (no downside). Add an income rider now or later to turn on guaranteed lifetime payments in retirement.
Availability, rates, caps, and rider terms vary by carrier and state. We’ll show side-by-side illustrations before you decide.
How We Build a Safer Annuity Plan
- Discovery: Clarify your time horizon, income gap, liquidity needs, and legacy goals.
- Rate Scan: Compare MYGA and FIA options from 100+ carriers for the most competitive guarantees.
- Stress-Test Income: Use the calculator above to model different start ages, single vs. joint life, and payout features.
- Right-Size Liquidity: Balance surrender periods with penalty-free withdrawals and emergency reserves.
- Coordinate Taxes: Align IRA/RMD timing and non-qualified tax deferral with your broader plan.
When Safe Fixed Annuities Make Sense
- You want dependable growth without market volatility.
- You’re within 10 years of retirement and prefer predictable outcomes.
- You plan to turn a portion of savings into guaranteed lifetime income.
- You’re diversifying beyond CDs/treasuries and want tax-deferred compounding.
- You want to coordinate Social Security and Medicare benefits
Ready to compare contracts side-by-side? Start with today’s market and see where MYGA and FIA options stack up on our Fixed Annuity Rates page, then request a custom illustration.
See Your Safe Fixed Annuity Options
We’ll compare rates from 100+ carriers and tailor a plan for your goals.
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Safe Fixed Annuity Options: FAQs
What counts as a “safe” fixed annuity?
Safe fixed annuities are contracts that protect your principal (no downside market risk) and offer predictable growth or guaranteed lifetime income. Examples include MYGAs (Multi-Year Guaranteed Annuities) and Fixed Indexed Annuities (FIAs) with income riders.
How do MYGAs differ from Fixed Indexed Annuities?
MYGAs: similar to CDs, with a fixed rate for a multi-year term (e.g., 3-10 years), no market downside.
FIAs: your principal is protected while growth is linked to an index; growth usually subject to caps/participation rates. FIAs often offer optional lifetime income riders that convert the contract into guaranteed income later.
FIAs: your principal is protected while growth is linked to an index; growth usually subject to caps/participation rates. FIAs often offer optional lifetime income riders that convert the contract into guaranteed income later.
Are my earnings tax-deferred?
Yes. In most cases, the interest or indexed gains compound without being taxed until you withdraw, which can help boost your growth compared to taxable alternatives.
When might a safe fixed annuity make sense?
• You want to protect part of your savings from market volatility.
• You’re within ~10 years of retirement and want predictable income.
• You want to diversify beyond CDs or Treasury products.
• You plan to convert savings into lifetime income or supplement Social Security.
• You’re within ~10 years of retirement and want predictable income.
• You want to diversify beyond CDs or Treasury products.
• You plan to convert savings into lifetime income or supplement Social Security.
What should I consider when comparing MYGAs or FIAs?
Key factors include guarantee period, surrender charge periods, caps/participation rates (for FIAs), rider costs for income guarantees, carrier strength, liquidity (how soon/without penalty you can access funds), and how withdrawals affect income guarantees.
Is there risk in fixed annuities?
There is less market risk than in equities, but there are trade-offs: surrender charges, income rider fees, inflation risk if income is fixed, and liquidity constraints. Also, returns may lag inflation if rates are low.
What fees or costs are involved?
Costs may include rider fees if adding lifetime income, caps/participation/crediting method costs on FIAs, surrender charges, and possibly advisory or commission fees. Always get illustrations showing these.
How do I estimate what income I’ll get later?
You can use a lifetime income calculator: input amount invested, age when income begins, whether single or joint life, and whether you add riders. This helps simulate future guaranteed income streams.
Can I ladder annuities to improve liquidity?
Yes—one strategy is to stagger MYGAs with different term lengths, so as each matures you have access to cash while still maintaining guaranteed return on other portions.
