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Financial professional and client discussing retirement planning basics, options and Protective fixed annuities
Financial professional and client discussing retirement planning basics, options and Protective fixed annuities

Retirement planning basics

Working with clients on a cohesive retirement strategy is a smoother process when you're fully prepared to speak to all the options. Our resources can help clarify the role of annuities and facilitate productive conversations.

Top 3 retirement planning benefits offered by annuities

If your clients aren't familiar with utilizing annuities as part of a retirement strategy, it can help to introduce them in terms of the key benefits they offer. You can easily turn these key retirement benefits into talking points: 
Tax-deferred growth
An annuity allows for efficient, tax-deferred growth since clients won't pay taxes on any increased value until they begin withdrawing funds.
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Income options up to a lifetime
Clients can opt for guaranteed income for a set period of time or select a lifetime payout to create a guaranteed income stream similar to Social Security.
Guaranteed death benefit
Beneficiaries can receive a payout without the complications of probate, should the annuity owner pass away during the accumulation phase.
How an annuity works
Here's an easy, visual way to explain the annuity process to your clients. One party makes a single payment or series of payments, and the other agrees to do the same in return, sometime in the future.
A graphic explaining the annuity process from the time it is purchased until a beneficiary receives a death benefit payment."

Explaining the 2 phases of annuities

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Accumulation
For a period of time, the annuity purchase payment(s) may grow in value. Depending on the type of annuity, growth can be fueled in a few ways: by a fixed rate, crediting rates based on the performance of an index, or a combination of fixed income and equity investment options.
Distribution
The accumulated value can later be distributed back to the owner in a lump sum or a series of payments over time. Some annuities also offer optional benefits which can guarantee lifetime income for your clients and even their spouse, without annuitizing the contract.

Basic annuity designs: immediate or deferred?

There are two types of high-level annuity designs to consider, depending on client needs and retirement timing.
Immediate annuities
These types generally do not have a growth deferral period and begin income payments immediately or within a year.
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Deferred annuities
These types generally defer annuitization for a period of time to allow time for asset growth.

Explore different types of annuities

We offer different types of immediate and deferred annuities to better meet clients' various needs. Many of our annuities include enhanced income features, competitive fees and expanded investment options.
A woman feeling peaceful knowing she as a reliable income stream from an immediate annuity
Immediate annuities
Convert an asset into a reliable income stream that starts now. Income from immediate annuities is guaranteed to last for the select term. Clients may even select a lifetime term.
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Fixed annuities
Designed to offer guaranteed growth and income, fixed annuities could help conservative clients feel more secure about their plans for retirement.
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couple relaxing on a road trip after purchasing an indexed annuity for balanced growth and protection.
Indexed annuities
Maximizing asset growth and future income, while also protecting clients may seem impossible when today’s markets are so uncertain. An indexed annuity may help you deliver the right balance.
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Compare features for the potential fit

Use this chart to help determine which type of annuity best meets clients’ retirement needs.
Tax-deferred growth
Death benefit
Options for single-payment purchase or installments
Minimum guaranteed interest rate
Principal protection
Indexed-linked growth potential
Immediate annuity

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Fixed annuity
Indexed annuity

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We’re here for you

Everyone deserves peace of mind when it comes to safeguarding what’s most important. We’re ready to help you deliver the protection and security your clients deserve. Reach out to us anytime for questions and support, and we’ll get in touch with you as soon as possible.
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Welcome to Protective

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*Immediate annuities offer payout options that include survivor benefits.


Annuities are long-term insurance contracts intended for retirement planning. Annuities also may be subject to income tax and, if taken prior to age 59 ½, an additional 10% IRS tax penalty may apply. Because Protective and its representatives do not offer legal or tax advice, it is important that you talk with your own legal and tax advisor about your specific tax situation.


Indexed annuities are not an investment in any index, is not a security or stock market investment, does not participate in any stock or equity investment, and does not contain dividends.


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