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Annuities for retirement

Get a guaranteed stream of income to help pay expenses after you stop working.

Happy senior couple in raincoats talking in the rain.

What is an annuity?

You’re saving to build a nest egg for retirement. But once you stop working, how will you get a regular income to live on? Annuities are a retirement vehicle that can help provide a steady, guaranteed stream of income in retirement. And, you can contribute to an annuity as part of your retirement strategy alongside any contributions you make to a 401(k) or an IRA.

What type of annuity is right for you?

There are several types of annuities, and many provide tax-deferred growth. How do you want your money to be invested? When do you need to start receiving income? Different annuities are designed to meet different needs.

  • Immediate annuities - Clock icon

    Immediate annuities

    Most annuities are "deferred" — you invest for a number of years and then take income later. Immediate annuities start paying within a year: You make a single, lump-sum payment, then we distribute income based on the schedule you choose (i.e., for a select period, or life).

    Learn more

  • Fixed deferred annuities - Lock icon

    Fixed deferred annuities

    A fixed annuity is a long-term retirement investment for people who want predictability. You’ll receive a guaranteed rate of return on the premium you contribute. And, when you’re ready to retire, you can receive guaranteed income payments.

    Learn more

  • Fixed index annuities - Line rising in chart

    Fixed index annuities

    This annuity can provide both premium protection and growth potential, allowing you to benefit when the market performs well and a level of protection when it does not. They provide a minimum guaranteed interest rate combined with potential growth tied to a specific index.

    Learn more

  • Registered index-linked annuities - Icon - umbrella

    Registered index-linked annuities

    A registered index-linked annuity (RILA) allows you to take advantage of potential growth tied to the performance of a stock market index, while also limiting losses during a market downturn.

    Learn more

  • Variable annuities - Check mark on dollar bill

    Variable annuities

    If you want to invest your money over the long term and take advantage of potential growth of the financial market, look at variable annuities.* They also provide the opportunity for you to earn tax-deferred savings until you're ready to receive guaranteed income payments from the annuity.

    Learn more

Annuity benefits comparison chart

Immediate

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Fixed index

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Variable

Can provide guaranteed income for life

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Immediate start to income

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Tax-deferred principal growth

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Inflation/cost-of-living adjustments

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Potential for market-like returns on your principal amount that is tied to market or index performance

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A level of protection against market losses

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Potential legacy for heirs

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Note: The benefits listed are generally available for the type of annuity noted, but may not be included in a specific annuity holder's contract: each annuity contract is unique and tailored to the owner's needs.

  • Why consider an annuity

    For most people, annuities are an additional way to plan for retirement, along with an IRA, 401(k), or pension. They can help simplify the task of turning a large retirement savings nest egg into regular income. And, by providing a lifetime guaranteed income stream, they can help ensure you don't outlive your money.

    Top 5 things to know about annuities

  • How an annuity works

    An annuity is a contract with an insurance company that can guarantee income for a set period of time (e.g., 10 years) or indefinitely (i.e., the rest of your life). Immediate annuity contracts begin paying within a year of purchase; deferred annuities let you build savings while you’re working and convert it to a stream of income later on.

    Learn about immediate and deferred income annuities

  • Where it fits in your plan

    An annuity can be an important part of your financial plan, along with life insurance and other investments. No matter where you are in your retirement strategy — or how much you need to save for other life goals — we can provide guidance on saving and investing to help you retire the way you want.

    Try our retirement planner

Who is an annuity for?

Whether you’re about to retire or still years away, you should consider getting an annuity if you want a steady, guaranteed monthly income to live on in retirement. An annuity contract is one of the only investments available that can guarantee you'll have income for life.

Annuities can provide three significant benefits for your retirement

Want some help figuring out if annuities are right for your retirement goals?

Connect with a local financial professional who can help you decide.

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Frequently asked questions about annuities

*Learn more about Guardian Variable Annuities, including important information that you can read or download anytime

  • Prospectuses

    Learn more

  • Prices and performances of our annuities

    Learn more

  • Guardian Variable Products Trust

    View important VPT documents such as prospectuses, reports, and the SAI.

    Learn more

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Guardian® is a registered trademark of The Guardian Life Insurance Company of America, New York, NY.

Copyright© 2024 The Guardian Life Insurance Company of America. All rights reserved.

Important considerations about annuities

This material is intended for general public use. By providing this content, The Guardian Life Insurance Company of America, The Guardian Insurance & Annuity Company, Inc. and their affiliates and subsidiaries are not undertaking to provide advice or recommendations for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation.

This material is for information use only. It should not be relied on as the basis to purchase a variable, fixed, or immediate annuity or to implement a retirement strategy.

The information provided herein is not written or intended as investment, tax, or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. This information supports the promotion and marketing of annuities.

There are no additional tax benefits if you purchase an annuity to fund an IRA or qualified retirement plan. Therefore, an annuity should only be purchased in an IRA or qualified plan if you value some of the other features of the annuity and are willing to incur any additional costs associated with the annuity to receive such benefits.

Current tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary, depending on the particular set of facts and circumstances. Entities or persons distributing this information are not authorized to give tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel.

Variable annuities (VA) and registered index-linked annuities (RILA) are long-term investment vehicles designed to help investors save for retirement and involve certain contract limitations, fees, expenses, and risks, including possible loss of the principal amount invested. The investment return and principal value may fluctuate so that the investment, when redeemed, may be worth more or less than original cost. As with many investments, there are fees, expenses, and risks associated with these contracts. These contracts are sold by prospectus only. Please read the prospectus carefully before investing or sending money. All guarantees, including the death benefit payments, are dependent upon the claims-paying ability of the issuing company and do not apply to the investment performance of the underlying funds in the VA. Assets in the underlying funds are subject to market risks and may fluctuate in value. You can not invest directly in an index with a RILA.

Withdrawals of taxable amounts from a variable or fixed deferred annuity will be subject to ordinary income tax and possible mandatory federal income tax withholding. If withdrawals are taken prior to age 59½, a 10% IRS penalty may also apply. Withdrawals may also be subject to a contingent deferred sales charge.

Variable annuities and their underlying variable investment options are sold by prospectus only. Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. This and other information are contained in the prospectus or summary prospectus, if available, which may be obtained from your investment professional. Please read it before you invest or send money.

Fixed and variable annuities are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC). All guarantees are backed exclusively by the strength and claims-paying ability of GIAC. Variable annuities are issued by GIAC, a Delaware corporation, and distributed by Park Avenue Securities LLC (PAS). Both GIAC and PAS are wholly owned subsidiaries of The Guardian Life Insurance Company of America, 10 Hudson Yards, New York, NY 10001.

Not a Deposit | Not FDIC or NCUA Insured | May Lose Value | No Bank or Credit Union Guarantee

Even if you’re maxing out your 401(k) or IRA, you can save even more — with the potential for tax-deferred growth — by purchasing a non-qualified annuity with no contribution limits.

If you’re 5-10 years from retirement and want guaranteed income after a certain age, you can get an annuity that will continue to grow tax-deferred until you need it.

If retirement has already started — or will this year — you can use a portion of your nest egg to purchase immediate guaranteed income for life or a set period of time.

Fixed income annuities turn your contributions into a steady stream of guaranteed retirement income — for your lifetime or a specific number of years.

Fixed deferred annuities provide a guaranteed rate of return, while variable annuities provide potential growth based on increases in the stock market.

If you’re ready to retire, immediate annuities can start providing income soon after your premium payment; deferred annuities give you time to save more — and get more income down the road.

Different insurance companies offer many kinds of annuity contracts with different features and investment options and refer to them in different ways. The five common types of annuities include:

  1. Immediate annuities: Also called immediate income annuities, these provide a guaranteed stream of income right away in return for a single lump-sum payment. The amount of income is calculated according to set annuity factors.

  2. Fixed annuities: This could refer to a deferred income annuity or a deferred fixed annuity that provides income at a future date in return for one large sum or periodic payments that grow over time based on a fixed interest rate.

  3. Variable annuities: These are annuities that grow over time based on market investments, which can fluctuate, and provide income at a future date. However, a variable annuity provides fewer guarantees than other annuity contracts and may decrease in value.

  4. Fixed index annuities: These are designed to provide market growth potential, like a variable annuity, and premium protection. A fixed index annuity gives you the potential for growth tied to a specific market index, such as the S&P 500, but is typically capped; in addition, a minimum guaranteed interest rate protects you from losses.

  5. Registered index-linked annuities (RILA): These annuities can help you reach your financial goals for retirement, as they offer growth potential for your retirement assets, while providing a level of protection during market downturns.

Annuities can provide unique lifetime income benefits that protect against outliving one's money, but they aren't for everyone. They can be more complex and harder to understand than other investment products, such as mutual funds, and may have higher administrative fees and other limitations which don't match your investment objectives. Some annuities (specifically, variable annuities) can lose value. And while annuitization can make it easier to convert retirement assets into a lifetime stream of income, not everyone needs that. For example, if you have lifetime income from a pension or own real estate assets that generate reliable rental income, you may want to prioritize other types of investments or retirement savings.

Every person's situation is different, but there's a simple way to determine whether to consider an annuity. Add up any known regular expenses you will have during retirement, then subtract other forms of guaranteed retirement income, like a pension or Social Security. If there's a gap, then an annuity may be a good option. If you do choose to buy an annuity, you may want to limit it to a portion of your retirement savings: for example, 25%. Why? There are limits to how much money you can take out of an annuity (other than your regular annuity payments), so it's important to have access to other funds, such as savings or cash value from a life insurance policy that you can draw on for unexpected expenses.

Yes, depending on the annuity contract. Many annuities have options you may elect designed to provide lifetime income for two spouses, so annuity payments only stop when the last surviving spouse passes away. And since annuities share certain features with life insurance (that's why they are issued by a life insurance company), many contracts include a death benefit provision which allows the owner to pass assets to their children or other beneficiaries.