A retirement-income conversation should include what you need your money to do and when you may need access to it.
Start with the purpose
An annuity is a contract with an insurance company. Depending on its terms, it can provide income now or later. Annuities differ in how values change, how payments work and what guarantees apply.
Put access and costs on the table
- When would income begin, and how long could it last?
- How much money would remain accessible for unexpected expenses?
- What surrender charges, fees or withdrawal restrictions apply?
- What happens to the contract when the owner dies?
- Which values are guaranteed, and which depend on assumptions?
Review the actual documents
Ask for a clear explanation of the contract and disclosures. Compare the proposal with your income needs and other available resources. Annuities are not interchangeable with Medicare coverage or life insurance.