Fixed and Variable Annuities

Guaranteed income for life—​in any market

Whether you’re already retired or years away, you can feel more confident in your planning with guaranteed income from a fixed or variable annuity.

Choose from fixed annuities with a stated payout rate, or variable annuities with a payout rate based on market performance.

Benefits of investing in annuities

  • Guaranteed income for life

The only investment product that can provide guaranteed income for life, annuities are contracts between investors and insurance companies.

  • Tax benefits

Annuities offer tax-deferred growth potential, which means your money can compound and grow tax-deferred until a withdrawal or an annuitized payment is made.

  • Hedge against market fluctuations

Annuities can offer several different guarantees that provide protection during market downturns, and may, for an additional cost, include guaranteed growth, guaranteed principal protection, or a stream of income that is guaranteed for life and will never decrease.

  • Higher payouts

Annuity payments include interest and a portion of your principal contribution, and may even continue after you’ve recouped your principal, giving you higher payouts than comparable investments that provide income.

Reasons to choose PSS for your annuity

  • Competitively priced

May save you money compared with annuities you own now.

  • Valuable benefits

Including optional lifetime income and inflation protection.

  • Exceptional value

Tax-deferred investment growth and no surrender fees for variable annuities.

  • Team of annuity specialists

Our non-commissioned team can help you find solutions to meet your needs.

  • Annuities from highly-rated insurance carriers

The annuity products available through PSS are provided by established insurance carriers, with AA- ratings or better.

Which annuity is right for you?

benefits
single premium immediate annuity
deferred income annuity
fixed deferred annuity
variable annuity with optional glob benefit
Offers guaranteed income for life
Offers a tax-advantaged income stream
Can provide a steady, guaranteed stream of income immediately
Can provide a steady, guaranteed stream of income at some point in the future
Locks in higher payout rates the longer you wait to receive payments
Growth potential tied to performance of underlying accounts
Asset growth compounds tax-deferred
Can provide a financial legacy for your beneficiaries
Offers access to your funds (prior to annuitization)
Additional tax penalty if receiving payments before age 59 1/2
  • Strong Alignment
  • Partial Alignment**
  • No Alignment

Basics of Annuities

Explore the information and resources below to increase your understanding of annuities investing.

What is the definition of annuities?

Annuities are contracts between you and an insurance company that can provide you income through a unique combination of investment and insurance features. Annuities can complement other retirement plans and, depending on what type you select, they may provide guaranteed lifetime income, opportunities for tax-deferred growth, flexible withdrawals, and legacy protection for your beneficiaries. Guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.

How do annuities work?

When purchasing an income annuity, your assets become a guaranteed income stream for life, or for a specific period of time. Many clients purchase income annuities to cover their essential expenses, as defined by them, in retirement. For an additional cost, income annuities may offer a cost-of-living-adjustment, increasing your income each year, to help address inflation risk.

PSS offers two types of income annuities: single premium immediate annuities and deferred income annuities. The key difference between these two product types is when income begins. For single premium immediate annuities, income generally begins “immediately”, whereas for deferred income annuities, the income doesn’t begin for at least 13 months from your last premium payment, but may be deferred by up to 40 years.

Fixed annuities, sometimes referred to as fixed deferred annuities, provide guaranteed asset growth at a fixed rate for a specific time period. The growth is tax-deferred which can help you accumulate more assets instead of paying taxes during the accumulation phase, and your assets are protected from market uncertainty. If you elect to receive guaranteed income, you can choose income for life or for a specific time period.

Fixed indexed annuities provide principal protection with the option for fixed rate returns (similar to a fixed annuity), or capped growth dependent on a preselected market index over a specific period of time – you are not directly invested in the market. If the index is up, then yield is credited to your account up to a capped percentage. If the index is down, then your principal will not lose value (i.e. 0% return). The growth is tax-deferred which can help you accumulate more assets instead of paying taxes during the accumulation phase. If you elect to receive guaranteed income, you can choose income for life or a specific time period.

With a variable annuity, investments, often called sub-accounts, are chosen from within the annuity. The performance of the investments determines the value of the account and subsequently, the amount of income you will receive. The growth of the investments is tax-deferred which can help you accumulate more, instead of paying taxes during the accumulation phase. If you elect to receive guaranteed income, you can choose income for life or for a specific time period.

What kinds of annuities does PSS offer?

PSS offers income annuities (single premium immediate annuities and deferred income annuities), fixed deferred annuities, fixed indexed annuities and low-cost variable annuities. The fixed indexed annuities and variable annuities offer an optional guaranteed lifetime withdrawal benefit.

Income annuities provide guaranteed lifetime income or income for a specific period of time that you choose. A single premium immediate annuity provides income “immediately.” A deferred income annuity provides income at a future date that you select.

Fixed deferred annuities deliver guaranteed growth and principal protection of your assets.

Fixed indexed annuities may provide (a) principal protection of your assets, (b) market capped growth, (c) guaranteed lifetime income, (d) guaranteed death benefit options, and (e) tax-deferred growth potential.

Low-cost variable annuities may provide (a) guaranteed lifetime income, (b) guaranteed death benefit options, (c) a variety of investment options, and (d) tax-deferred growth potential.

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