Provides returns based on a stock market index with a "floor" to protect against losses, though upside is usually capped. 3. Evaluate Pros and Cons When do annuities make sense | Retirement - Aviva
accumulate value over a period before starting payouts at a later date. Growth Mechanisms:
Returns are tied to market-linked subaccounts (like mutual funds), offering higher growth potential but also the risk of losing principal. buying an annuity
Annuities are categorized by when they pay out and how they grow:
begin paying income almost immediately (within a year) after a single lump-sum payment. Provides returns based on a stock market index
Before looking at products, ask yourself what you want the money to do for you. Common goals include:
Safeguarding your initial investment from market losses. Lifetime Income: Ensuring you never outlive your savings. Legacy: Leaving a specific benefit for your heirs. buying an annuity
Offers a guaranteed interest rate and predictable payouts.