USAA Fixed Annuities
We believe your retirement deserves some guarantees.See note1
With an annuity, you may enjoy a steady stream of retirement income for life.
What is an annuity?
An annuity is a type of insurance that guarantees you'll get a steady paycheck for as long as you're alive, or for the amount of time you choose. It can help protect you against the risks of stock market volatility and outliving your money.
Annuities: Myths versus Facts
What are the pros and cons of an annuity?
An annuity may be a good option because it offers regular payments and may provide tax benefits. However, there are potential cons that you should also think about before you decide to buy an annuity. Consider a few of the most common pros and cons.
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Pros of an annuity.
- Income for Life — You won't outlive your income.
- No Market Risk — Your money will be protected against the ups and downs of the stock market.
- Lower Risk or Minimal Risk — Your money will never go below the guaranteed minimum interest rate.
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Cons of an annuity.
- Limited Growth — You may not earn as much as investing in the stock market.
- Early Withdrawal Penalties — You'll be subject to tax penalties if you withdraw money before the age of 59and a half. Also, there are early cash out fees if you take money before the surrender period.
What type of annuity is right for me?
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Deferred Annuities
I'm still saving for retirement. Deferred annuities are long-term investments that grow tax-deferred over time. When you're ready to retire, you can choose how you'd like to get payments. -
Income Annuities
I'm transitioning into retirement. Income annuities are typically purchased closer to retirement, with payments to start within 12 months. You can choose guaranteed payments for life, a set period of time, or both.
Frequently Asked Questions
Why choose USAA?
Serving the Military Community
At USAA, we understand that military lives are different. That's why we offer financial advice tailored to your needs — and guided by the values of service, loyalty, honesty and integrity.
Financial Strength
Because our insurance company maintains high ratings from all three major agencies members trust us to deliver when it matters most.
Support for Your Loved Ones
Count on USAA to be there for your family. Your family will have one main point of contact that can help walk them through the steps needed.
Video Transcript for Annuities: Myths versus Facts
Video Duration: 2 minutes 12 seconds
Transcript Date: Dec. 18, 2018
Introduction Elapsed Time 0 Seconds [00:00]
What will an annuity do for you? An annuity is one way of making sure you have regular income during retirement.
Deferred Annuity Elapsed Time 10 Seconds [00:10]
For example, with a deferred annuity, you put in money, it earns interest, and when you retire you get guaranteed monthly payments for life. When used correctly annuities can be a solid part of a comprehensive retirement package.
Not Everyone Knows the Benefits Elapsed Time 24 Seconds [00:24]
But not everyone knows about the benefits of having an annuity in their retirement plan. We'll dispel the top myths and see if an annuity from USAA is right for you.
Myth 1 Elapsed Time 34 Seconds [00:34]
Myth 1: Annuities are only for older or extremely conservative investors. Lots of younger people are not only seeing the benefits of annuities, but also the protection from risk annuities provide.
Annuities Simplify the Process Elapsed Time 49 Seconds [00:49]
For example, annuities can simplify the complex process of creating your own retirement income with a guaranteed monthly payment. Annuities can provide tax deferred growth which means you may keep more of the earned interest each year as you're saving for retirement.
Annuities Provide Financial Stability Elapsed Time 1 Minute 4 Seconds [01:04]
Annuities can potentially help create future guaranteed income streams while providing financial stability and diversity to a retirement portfolio.
Myth 2 Elapsed Time 1 Minute 13 Seconds [01:13]
Myth 2: Annuities don't provide as many benefits or high returns as other financial products. Well maybe, but that's like comparing apples and oranges. Annuities are designed as a lower risk option to protect you from losing the money you put in. When turned into a stream of income, they can provide guarantees that investments just can't.
Myth 3 Elapsed Time 1 Minute 35 Seconds [01:35]
Myth 3: If I get an immediate annuity and die before the payments are paid out in full, my beneficiary will lose the money. Actually, you can chose to allow payments to continue until all of the initial investment has been paid back to you, your spouse, or a beneficiary, regardless of an early death.
Ready to Add an Annuity? Elapsed Time 1 Minute 57 Seconds [01:57]
Ready to add an annuity from USAA to your retirement game plan? Click learn more to find out how to get a guaranteed income for you and your family with our annuity options.
End Elapsed Time 2 Minutes 8 Seconds [02:08]
Surrender Charges
| 1 See notest | 2 See notend | 3 See noterd | 4 See noteth | 5 See noteth | 6 See noteth | 7 See noteth | 8 See noteth or later | |
|---|---|---|---|---|---|---|---|---|
| Fee (for withdraws over 10%) | 7% | 7% | 7% | 6% | 5.2% | 4% | 3% | 0% |
| Years | Surrender Charge Fee |
|---|---|
| Year 1 | 8% |
| Year 2 | 8% |
| Year 3 | 7% |
| Year 4 | 6% |
| Year 5 | 5.2% |
| Year 6 | 4% |
| Year 7 | 3% |
| Year 8 | 2% |
| Year 9 | 1% |
| Year 10 | 1% |
| Thereafter | 0% |
For example, your annuity has $100,000 and you withdraw 12% then you will need to pay an extra charge on the 2% or $2,000.
If you opened your annuity:
- 2 years ago then you will be charged a 8% fee on the $2,000 or $160.
- 6 years ago then you will be charged a 4% fee on the $2,000 or $80.
