ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Ultimate Guide To Fixed Annuities

Updated on April 11, 2016

Reasons To Invest

When you are ready to retire, you will need some type of steady income to ensure you can afford to live after you stop working. One of the most important things you may need to do is to find a good annuity rate that will help you achieve your retirement goals. Annuities are one option that can provide a steady stream of income for the rest of your life. You provide a company with some of your savings and, in return, the company promises to pay you a specified amount of income over a period of time.

While the idea of an annuity seems simple, the world of annuities is complex. There are different types of annuities that are offered by many different types of companies. While annuities can provide a steady stream of income, this option is not necessarily the right choice for you.

Fix Annuity Interest Rates

Why Fixed Annuities?

One of the main reasons retirees are attracted to annuities is the prospect of consistent and predictable income. With annuities, you can avoid the ups and downs of the market and relax knowing your income is stable. For example, if a 65-year old man purchases an annuity for $100,000 and is paid $550 a month for the rest of his life, it will take 15 years to recoup his original investment. If he dies 30 years later, he will have received $200,000. That is double his original investment. However, if he dies the day after purchasing the annuity, his heirs will not receive his promised income because the payout is only for his lifetime. There is some risk involved in purchasing annuities, but there are some potential benefits, such as receiving more than the original purchase price, that can be gained as well.

If you are fearful that you will not live the entire promised pay period of the annuity, you do have another option when purchasing an annuity. For example, you could purchase an annuity that guarantees you a benefit for a specific period of time, like 20 years. If you die before the 20-year payout is complete, the remaining payments would go to your beneficiaries for the remainder of the payout period.

Sources/Citations: LiveJournal and CNN Money

Recommended Fixed Annuity Tips

Additional Considerations

  • Fixed annuities are essentially CD-like investments issued by insurance companies.
  • Fixed annuities are insurance contracts that offer the annuitant a set amount of income paid at regular intervals until a specified period has ended or event has occurred.
  • A fixed annuity provides guaranteed income for life, but there are other factors to consider.

Test Your Annuity IQ

view quiz statistics

Getting The Most Out Of Retirement

Over an extended period of time, you are likely to get better returns by investing in stocks and mutual funds. However, the ups and downs of the market can be stressful and leave you unsure of your monthly income during retirement. An annuity will guarantee you a certain amount of income, not matter what is happening in the market or economy. This type of investment can give you some peace of mind. However, be sure to thoroughly research your annuity options and determine if you want a fixed annuity rate with a specific payout period to ensure your beneficiaries receive your monthly income if you die before the payout period ends.


Submit a Comment

No comments yet.


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)