Look at the whole contract.
Annuities differ in how money accumulates, when income starts, and what guarantees apply. Consider how a particular contract fits your need for income and your need to access funds.
Understand the tradeoffs.
Ask about fees, surrender charges, withdrawal restrictions, and any optional rider costs. Contract guarantees depend on the issuing insurer’s ability to meet its obligations. An annuity is not a bank deposit.
Questions worth asking
- When would income begin, and how long could it continue?
- Which amounts are guaranteed and which could change?
- What would it cost to withdraw money early?
- How does this fit with my other retirement resources?
Discuss suitability and your personal circumstances with a qualified professional before making a decision.