Loading...
Talk to a specialist

When you need income you can count on

An immediate annuity is the most basic type of annuity. You make one lump-sum contribution. It’s converted into an ongoing, guaranteed stream of income for a specified period of time (as few as five years) or for a lifetime. Withdrawals may begin within a year.
Learn more about immediate annuities

What are the benefits?

Tax advantages

Its tax-deferred status allows you to benefit from compounded growth.

Also, if you fund your immediate annuity with money you’ve already paid taxes on, you’ll have a source of income that’s partially tax-free.

Immediate income

You begin receiving guaranteed payments after the first year.

Customized guaranteed income

Create income for either one or two people for a specific period of time or for life.

Income steadiness

On some products, for an additional cost, you may opt for a cost-of-living adjustment (to protect against inflation) or a liquidity feature (to allow lump-sum withdrawals in the event of a financial emergency).

What should you consider before purchasing?

Designed for income security

This product may not be right for you if you:
  • Have enough income to maintain your cost of living and don’t need income security or
  • Have little retirement savings and need immediate access to cash

COST-OF-LIVING ADJUSTMENT (COLA)

To offset inflation, this feature automatically increases your annual payment amount by 1%, 2%, 3%, 4% or 5% compounded annually.
A middle aged woman smiles while drinking coffee and checking her smartphone at an outdoor cafe.

Learn how to make annuities work for you

Whether you’re concerned about income for retirement, legacy planning or spousal protection, annuities can be tailored to meet your specific goals. Download our annuity guide for all the details.

Get the guide
chat icon
Want to work with a financial professional?
Call 1-877-245-0761
Find a financial professional

Related topics & resources

Learn about the different types of investments
How much should I contribute to my 401(k)?
Retirement savings by age
Nationwide investing & retirement programs
More investing & retirement resources

An annuity is a contract you purchase from an insurance company, designed for long-term investing. The values will fluctuate based on investment option performance. Annuities have restrictions and limitations, and fees and charges will vary based on the product. You may be charged a penalty if you take your money out early. Withdrawals may be subject to ordinary income taxes, and if you are under age 59½, you may pay a 10% federal tax penalty. Please remember that investing involves risk, including possible loss of principal. All guarantees and protections are subject to the claims-paying ability of the issuing insurance company.