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Annuities Information


At some point in the future you will approach retirement age. With pension and social security benefits combined projected to cover about 40% of your retirement income, you may feel uncertain about your retirement.

A Saving Option that Offers an Income Stream

Once you've created your nest egg and decide to retire, you must decide how to convert your assets into a reliable source of income — possibly an income you can't outlive. An annuity could be the answer.

What Is an Annuity?

An annuity is a contract with an insurance company that basically offers income payments to you at regular intervals in return for the premium or premiums you have paid. Annuities are long-term investments for future income and should not be used for short-term goals.

The value of your annuity is the sum of premiums you have paid, less charges, plus the interest that has been credited. This value is used to calculate the amount of most benefits you will receive.

Your retirement lifestyle will depend on how well you plan and save while you're working, and how well you conserve your assets during retirement — and at VALIC, we can help.

What types of annuities are available?

How does the death benefit work?

What are my retirement income options?

Annuities are long-term investments. Income taxes are payable upon withdrawal. A 10% federal tax penalty may apply to withdrawals before age 59½. Surrender charges may apply.

Remember that the value of the investment will fluctuate so that your units when withdrawn may be worth more or less than their original cost.