USAA Life Insurance Company and USAA Life Insurance Company of New York
What is an annuity?
An annuity is an insurance product that can help protect you against the risk of outliving your money. It generally comes in two forms: deferred and immediate.
Deferred annuities allow you to save money tax-deferred that you could turn into income in the future. Immediate annuities let you quickly turn some of your savings into a reliable stream of income.See note1
What is an annuity?
Video transcript: What is an annuity?
Video Duration: 1 minutes 45 seconds
Transcript Date: May 23, 2023
There's a lot to consider when it comes to retirement planning. You might ask questions like: How can I protect my hard-earned retirement savings from market fluctuations? How can I cover basic expenses without a regular paycheck? Will I run out of money if I live a long time?
If you're looking for some peace of mind in retirement, an annuity could be a great option.
So, what's an annuity? It's an insurance product that helps protect you against the risk of outliving your money.
Here's how it works. When you buy an annuity, you enter a contract with an insurer. You give them money, in exchange, they promise to give the money back to you plus interest at a later date or in the form of a reliable income stream.
Annuities come in two main forms: deferred and immediate.
Deferred annuities are great long-term savings options. They allow you to grow money tax-deferred with the option to turn into income later. Your money will either grow at a fixed rate or a market-based rate, depending on the annuity you choose. When it comes time to retire, you can take the money out in a lump sum or start receiving scheduled payouts.
Immediate annuities, sometimes called income annuities, work best if you're close to retirement. They let you quickly turn some of your savings into a reliable income stream. When you buy an immediate annuity, you open with a lump sum and start receiving payouts shortly after. You can choose to get guaranteedSee note1 payouts for the rest of your life, a set number of years or both. You can also add beneficiaries to your contract. That way, you can rest easy knowing your family will be taken care of.
Ready to find out if an annuity is the right or you? Schedule a call with one of our Retirement Income Specialists.
What annuities does USAA offer?
Fixed Indexed Annuity
Our Fixed Indexed Annuity (FIA) is a deferred annuity that offers more opportunity for protected growth than a traditional fixed annuity.
- Minimum to open: $100,000
- Term: 7 years
- Growth opportunity based on the S&P 500®
Deferred Annuity
Our Fixed Guaranteed Growth (FGG) annuity is a deferred annuity that offers protected growth at a guaranteedSee note2 interest rate for a period you choose.
- Minimum to open: $20,000 to $50,000
- Term: 3, 5 or 10 years
- Can be used to create guaranteed income later
Immediate Annuity
The USAA Single Premium Immediate Annuity (SPIA) offers a guaranteed stream of income for your lifetime, a set number of years or both.
- Minimum to open: $20,000
- Term: 10 to 30 years, your lifetime or both
- Payouts can start right away
Ready to talk to us about your ideal retirement?
We know buying an annuity is a big financial step. That's why our Retirement Income Specialists are here to provide complimentary retirement income planning. Schedule a call or call us directly.
Call 800-833-9847 For a TTY device, dial 711
How to prepare for your conversation
Here are steps you can take to make the most of your meeting with a Retirement Income Specialist.
-
Step 1: Schedule a call.
Choose a time that's convenient for you.
-
Step 2: Start preparing.
Fill out our retirement planning worksheet (Opens in New Window).
-
Step 3: Come ready to ask questions.
And get answers from a professional.
Video transcript: What is an annuity?
Video Duration: 1 minute 15 seconds
Transcript Date:Transcript Date: Oct. 18, 2023
Preparing for retirement: Elapsed time 0 seconds [00:00]
Tony Medrano: Hi, I'm Tony. I'm a retirement income specialist with USAA. Retirement is a highly anticipated time in many people's lives.
It's your time to focus on the things that you want. It's also a time that requires planning. After all, today's retirees can expect to live on average 20 years or more.
While plenty of materials exist on how to save for retirement, there is not much advice on how to transition your nest egg into a retirement paycheck.
True freedom in retirement comes from being able to do what you want when you want. Aside from savings, are you prepared to live your best life in retirement?
How USAA can help: Elapsed time 34 Seconds [00:34]
Description of visual information: [What to expect] End of description.
We are here to help. Together, we'll spend some time understanding your needs, wants and wishes in retirement years.
We'll develop a strategy that will help you navigate unforeseen risks providing a more enjoyable retirement.
There are many risks to consider, such as changes to Social Security, overspending, inflation, and unexpected medical expenses.
In our meeting, we'll confirm if you're on track, if you can retire early, or need increased savings to cover a shortfall.
We want you to come away feeling confident about your retirement income strategy.
Schedule a call for a time that's convenient for you or call us directly.
End: Elapsed time 1 minute, 15 seconds [01:15]
Benefits of annuities
People often overlook or misunderstand annuities. But when it comes to retirement planning, they offer key advantages that you should consider.
-
Peace of Mind
Annuities can ease risks and put you on a path to reach your retirement goals.
-
Protected Growth
Your retirement savings will be protected from market fluctuations.
-
Reliable Retirement Income
An annuity can provide steady income for life, supplementing Social Security or pension benefits.
Why choose USAA Life Insurance Company for an annuity?
We've been providing financial products and services to our members for more than sixty years. And we're built around the core values of service, loyalty, honesty and integrity. Here's more of what you can expect from us.
Professional guidance
Our Retirement Income Specialists can help you develop a complimentary retirement income review. Their customized planning and distribution strategies can help you retire with confidence.
Financial strength
The USAA Life Insurance Company maintains top-tier grades from all three key rating agencies. That includes the highest possible from A.M. Best and the second-highest possible from both Moody's Investor Service and S&P Global.See note3
Exceptional service
We offer highly competitive rates that help you save for retirement. And we consistently achieve some of the highest scores in the industry for annuity customer satisfaction.
Webinar: USAA Fixed Indexed Annuities for worry-free growth
Grow your retirement savings with a USAA Fixed Indexed Annuity. It's designed to boost your savings when the stock market does well while offering protection during market drops. Register for our webinar replays on Feb. 20th and 27th, or Mar. 5th at 6:30 p.m. CT to learn more and engage in a live Q&A.
Annuities FAQ
Related resources
-
Annuities 101: most commonly asked questions and answers.
Article: 9 to 10 minutes
-
Social Security claiming tips: Look before you leap.
Article: 5 to 6 minutes
-
Annuities, IRAs and pensions: Saving for retirement.
Article: 7 to 8 minutes