Fixed Annuities
Interest is credited according to the contract. Review the guaranteed minimum, the period of any declared rate, surrender conditions, and the issuing insurer's financial strength.
Illustrate Hypothetical Accumulation →Retirement income & long-term planning education
Annuities, explained.
Know the contract before the commitment.
Learn how deferred annuities can accumulate value, how certain contracts provide retirement income, and why fees, liquidity, surrender provisions and insurer guarantees deserve attention.
Fixed annuitiesFixed indexed annuitiesIncome & surrender rules
Understand the categories
Four annuity structures worth understanding.
An annuity is a contract with an insurance company. These categories differ substantially. Not every annuity offers the same guarantees, income options or market-risk exposure.
Fixed Indexed Annuities
Interest is credited using a contract formula linked to an index, with caps, participation rates or spreads. These are not direct investments in the underlying index.
Understand Caps and Floors →Registered Index-Linked Annuities
RILAs may limit some index losses through defined buffers or floors, but can expose contract values to market-related loss. Registration, risk and contract provisions vary.
Review Contract Risks →Variable Annuities
Contract value can rise or fall with selected investment options. Review prospectus disclosures, investment risk, insurance charges and optional rider costs.
Review Fees and Suitability →Interactive Learning Tool
See the effect of time, credited interest and surrender charges.
This is a purely hypothetical fixed-rate deferred-annuity example—not an available insurer rate, investment recommendation, actual tax calculation or income quote.
ANNUITY ACCUMULATION • EDUCATIONAL
Explore the accumulation period
Move the controls and watch the results update immediately.
Illustrative accumulated value$148,024
Hypothetical surrender deduction$7,401
Illustrative value after this deduction$140,623
Example assumes one initial premium with constant hypothetical annual crediting and no interim withdrawals.
Before relying on these numbers: The example assumes a constant rate each year, no separate annual contract fees, no withdrawals, and a single simple surrender charge applied at the end. Real rates, contract expenses, market-value adjustments, surrender-charge schedules, taxes and optional benefits differ. A surrender is not the same as electing a lifetime income option. Guaranteed income depends on specific insurer contract terms and claims-paying ability.
Read the fine print
Three concepts that can change the outcome.
Understanding these provisions often matters more than an illustrated growth percentage.
Liquidity and surrender periods
Withdrawals or full surrender within a specified period may trigger a charge, market-value adjustment or loss of interest. Some contracts permit limited penalty-free withdrawals; rules differ by contract.
Indexed formulas and market risk
Fixed indexed crediting typically uses contract-defined formulas with limits. RILAs and variable annuities can expose owners to losses, depending on their features and selected options.
Income, taxes and guarantees
Immediate, deferred, accumulation and payout options are different. Guarantees depend on contract terms and the issuing insurer; qualified-contract tax treatment and withdrawal penalties require review.
Replacement considerations
Replacing an existing contract can restart surrender periods, change guarantees or trigger taxes. Compare the old and new contracts before making a decision.
Independent references
Explore the original consumer guidance.
These references are offered for further reading. The calculator does not fetch live interest rates or contract quotes.
For educational purposes only. Product features and availability are jurisdiction-dependent. Insurance, investment and tax matters may require different licensing or professional credentials, including in Canada.