Important

Your login session will expire in seconds

Would you like to extend your session?

Annuity Education

Everyone deserves the opportunity to live well with money to last their lifetime. And while they're not right for everyone, as part of a comprehensive financial plan, an annuity can be a strategic way to pursue financial freedom in retirement.

In the past, retirees could rely on employer-provided pensions and Social Security to completely fund their retirement. Now, however, most people must create their own retirement income by putting aside money through 401(k)s and other savings. Too often, it's not enough. Annuities can help fill the gap between what you've saved and what you'll need to live the retirement you want.

How Experts Perceive Annuities

Why Should I Consider Purchasing an Annuity?

In essence, an annuity can provide a "retirement paycheck" that guarantees a payout of income for a set number of years or even the rest of your lifetime depending on the option you choose*. When you purchase an annuity, you can pay with a lump sum or create a payment plan to provide a stream of income. Annuities are flexible. For example, some annuities begin paying a lifetime income stream immediately while others provide that stream in the future. And with the purchase of an add-on benefit (available for an additional charge), an annuity is the only product that can provide a steady stream of lifetime income that's unaffected by interest rate fluctuations and market downturns. And, your payments even have the potential to keep growing.

Sound too good to be true? It's not. It's important to remember that annuities were created by insurance companies, which have the unique ability to offer features and add-on options that help protect investors against outliving savings or having to change their lifestyle in retirement.

Features of an Annuity

Annuity features vary depending on the type of annuity you choose, but most provide the following.
Retirement
Income
In return for a portion of your savings, annuities can offer peace of mind by guaranteeing that you'll have
a future stream of income.
Growth
Potential
Most annuities defer your taxes until you take payments, which allow any earnings to be reinvested to grow and compound over time. This could give you a larger sum of money from which to withdraw your payments.
Opportunity to Leave
Money Behind
If leaving money to your loved ones or a special-interest group is a priority, an annuity can be an important tool.
There are three types of annuities: variable annuities, fixed index annuities, and fixed annuities. All involve risks, can lose market value, and have early withdrawal fees and other limitations. Work with a financial consultant to create a financial plan and determine if annuities make sense for your unique goals and priorities.

*Guarantees are backed by the claims-paying ability of the issuing insurance company.

Optional benefits are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may not be available if the annuity is owned by a "non natural person" such as a corporation or certain types of trusts.


What is an Annuity? An annuity is a long-term, tax-deferred vehicle designed for retirement. Variable annuities involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.

Annuity Facts

Older couple meeting with a financial professional

Dig deeper into the characteristics of annuities — including an overview of the different types of annuities, how they work, and their potential benefits and limitations.

Annuities Quick Look

Man using a calculator

Explore the three primary types of annuities, the optional benefits each may include, and which type may suit your investing and retirement goals.

Annuity Myths & Realities

Man thinking as he reads documents

Many of the common objections surrounding annuities are rooted in misinformation or outdated thinking. We separate fact from fiction.

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable insurance product, including its underlying investment options. The current prospectus (or for the variable insurance products the contract prospectus and underlying fund prospectuses, which are contained in the same document) provides this and other important information. Please contact your representative or the Company to obtain the prospectus(es). Please read the prospectus(es) carefully before investing or sending money.

Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York, annuities are issued by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact the Company for more information. Jackson is the marketing name for Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York.

• Not FDIC/NCUA insured • Not bank/CU guaranteed • May lose value •
• Not a deposit • Not insured by any federal agency •

Jackson works with vendors and other partners to help deliver online and mobile advertisements for Jackson that we think may be of interest to you. For more information about how we utilize cookies and vendors to deliver online advertising, please see our Web Site Privacy Practices.

CMN16249 08/18

© 2018. All rights reserved
Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951