Annuities are contracts with insurance companies designed to help meet retirement and other long-term goals, and that have the ability to provide a steady stream of income. PNC Investments can help assess whether an annuity is appropriate for you.
- Contracts with insurance companies designed to help meet long-term goals with the ability to provide a steady stream of income.
- Investors make lump-sum payments or a series of payments over time, then receive payments from the insurance company in return.
- Annuities allow for tax-deferred growth of your investment during the “accumulation” phase, then can make periodic payments to you during the annuitization, or “payout” phase.
- You decide the length of time you’d like to invest, as well as the frequency and duration of the payouts.
- Income payments can be structured for a term as short as three years or for as long as a lifetime.
- Contracts can be tailored to your risk tolerance and your need for income now or in the future.
- Frequently used for retirement planning.
- Can also be arranged to provide income and benefits for loved ones.
- All annuities and annuity riders are subject to the claims-paying ability of the issuing insurance company.
- Withdrawals made prior to age 59 1/2 will be subject to federal income tax penalties unless an IRA exemption exists.
