Annuities

  • An annuity pays income in retirement and generally provides tax benefits
  • The three types of annuities, fixed, variable, and income, provide different benefits for different retirement income needs

An annuity is a long-term insurance product that pays out income. Many people purchase an annuity to provide a combination of protection, tax deferral and income in retirement.

Why annuities?

An annuity provides you with scheduled payments of a lump sum, depending on the type of annuity you purchase.

Each of the three annuity types offers unique benefits for individual retirement income needs:

  • Fixed annuities provide a guaranteed principal and guaranteed rates of return, plus tax benefits. All guarantees are subject to the claims-paying ability of the issuing company.
  • Variable annuities offer the potential for greater income based on market performance. Variable annuities are complex investment vehicles that are subject to market risk, including the potential loss of principal invested.
  • Income annuities provide a specific amount of income for the rest of your life or for a specified length of time.
Take the next step

Ameriprise Financial can help you plan for a more confident retirement with our own RiverSource® annuities or annuities offered by other providers.

Be sure to talk to a financial advisor about the annuity's features, benefits, risks and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives.

You should consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options carefully before investing. For a free copy of the annuity's and underlying investment's prospectus, which contains this and other information about variable annuities, call 800.437.4332. Read the prospectus carefully before you invest.

Withdrawals that do not qualify for a waiver may be subject to a withdrawal charge. Withdrawals are subject to income taxes and withdrawals before age 59-1/2 may incur an IRS 10% early withdrawal penalty.

There is no guarantee that the annuity will keep up with inflation.

Ameriprise Financial Services, Inc. offers financial advisory services, investments, insurance and annuity products. RiverSource® products are offered by affiliates of Ameriprise Financial Services, Inc., Member FINRA and SIPC. CA License #0684538.

Most annuities have a tax-deferred feature. So do many retirement plans under the Internal Revenue code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax adviser prior to making a purchase for an explanation of the tax implications to you.

RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company and in New York, by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuities in New York.

ANNUITIES:

Are Not a Deposit of Any Bank or Bank Affiliate Are Not FDIC Insured Are Not Insured by Any Federal Government Agency Not Bank Guaranteed May Lose Value