Fixed annuities

Key Points

  • A fixed annuity can help provide predictable income in retirement
  • It guarantees your principal* and rate of return
  • The money in a fixed annuity generally grows tax-deferred on both principal and interest

A fixed annuity combines features that can help you accumulate earnings now, and during your retirement years. Fixed annuities offer a fixed interest rate and guaranteed income options. All guarantees are subject to the claims-paying ability of the issuing company.

Why fixed annuities?

With an annuity's fixed interest rate, you can protect your principal and potentially predict your earnings, which are generally not taxed until withdrawn.

A fixed annuity offers several important guarantees and tax advantages:

  • Guaranteed principal*. The amount you pay into the annuity is credited interest, giving you a level of comfort knowing your principal is protected.
  • Guaranteed returns. With a guaranteed minimum interest rate, your annuity is guaranteed to grow.
  • Tax advantages. Generally, the money in your annuity grows tax-deferred, so your account may grow faster. You earn interest on your principal and interest on your interest, including the portion that would otherwise have been taxed. You generally do not pay any taxes until you are ready to take income.

*If you surrender the contract during the surrender period, surrender changes may apply which could result in a loss of principal.

Take the next step

Ameriprise Financial can help you plan for a more confident retirement with our own RiverSource® fixed annuities.

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.