Are Fixed Annuities Right For You?

When planning for retirement, one of the biggest questions is how to create reliable income you won’t outlive. That’s where fixed annuities come in. They offer guaranteed interest rates and predictable payouts, but are they the right fit for everyone?

What Is a Fixed Annuity?

A fixed annuity is a contract with an insurance company. You invest a lump sum (or make payments over time), and in return the insurer guarantees a fixed rate of return for a set period. Later, you can choose to receive steady income payments, often for life.

How to Determine If It’s Right for You

1. Consider your need for safety. 

If you want to protect part of your retirement savings from market volatility, fixed annuities provides stability. Your money is not tied to the stock market, and your returns are guaranteed.

2. Think about your time horizon. 

Fixed annuities often lock up your funds for several years. If you might need quick access to your money, they may not be the best fit.

3. Evaluate your income goals. 

Do you want guaranteed income you can’t outlive? Fixed annuities can provide exactly that. If you already have pensions or other reliable income streams, you may prefer more flexible investment options instead.

4. Compare rates and fees. 

Not all annuities are the same. Compare interest rates, surrender charges, and company ratings before committing.

5. Match to your risk tolerance. 

If you’re conservative and prefer guaranteed growth over chasing higher returns, fixed annuities can be a comfortable choice.

What's Bottom Line?

Fixed annuities aren’t for everyone, but they can be a powerful tool for people seeking guaranteed income, principal protection, and peace of mind in retirement. The key is to balance your need for safety with your desire for flexibility and growth.

At Sonon Insurance, we help families across Pennsylvania, New Jersey, Delaware, Maryland, Illinois, Florida, and beyond explore their retirement options. If you’re wondering whether a fixed annuity makes sense for your financial future, we’d be glad to walk you through your choices, without broker fees and with only your long-term goals in mind.

👉 Contact us today to see how we can help you protect your future income.