Fixed annuities

Key Points

  • A fixed annuity can help provide predictable income in retirement
  • It guarantees your principal and rate of return no matter what happens in the markets
  • 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fixed rate of return, you can protect your principal and predict your earnings, which are generally not taxed until withdrawn.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 guaranteed against loss, giving you the comfort of knowing your principal is protected.
  • Guaranteed returns. With a guaranteed minimum interest rate, no matter what's happening in the market, your annuity is guaranteed to grow.
  • Tax advantages. Generally, the money in your annuity grows tax-deferred, so your savings may grow faster. You earn interest on your principal and interest on your interest, including the portion that would otherwise have been taxed. You do not pay any taxes until you are ready to take income.

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.