As Americans live longer than ever and company pensions become a thing of the past, having a steady, predictable cash flow in retirement becomes more important than ever to help you feel more financially secure in retirement.

Annuities can be an effective solution and, in addition to your savings and Social Security benefits, become a valuable part of your retirement plan. They also have the added benefit of tax deferral and can offer protections from market volatility.

A UBS Financial Advisor can walk you through your options and help you find what works best with your goals.

Graphic visual showing disparity between amount of workers with pensions between 1975 (88%) and now(<15%)

Less than 15% of non-union private sector workers have access to defined pension plans (vs. 88% in 1975). *

What is an annuity and how does it work?

An annuity is a contract with an insurance company (or an insurance “product”), that can turn your savings now into a predictable stream of income later, taken usually during retirement. You can fund an annuity with a single payment today or pay over time, and depending on the structure with the insurance company, you can either start getting the money back right away or at a future date.

Annuities can play an essential role in creating more financial certainty in retirement. Depending on the type, they also can offer benefits such as guaranteed income, tax-deferred growth, and protection against market volatility.

Your UBS Financial Advisor can help you explore if an annuity fits within your overall wealth strategy.

Today, annuity payout rates have increased substantially.
Ainsley Carbone, Retirement Strategist, UBS CIO Americas

Why consider annuities as a part of your wealth planning?

When planning for retirement, having more stability in place can make all the difference. A financial advisor can help you explore annuities that turn your savings into steady income, protect what you’ve built, and help you build your legacy. UBS Financial Advisors have the experience to help you navigate all of the twists and turns.

  • Guaranteed lifetime income

    Receive dependable payments for life, helping you cover essential expenses and building confidence in your financial future.

  • Principal protection

    Fixed annuities protect your principal from market losses and offer growth potential, though returns may be capped.

  • Tax-deferred growth

    Your earnings grow without immediate taxation, allowing potentially greater compounding for your investments over time.

  • Flexible payout options

    Choose when and how you want to receive your income, with options tailored to your lifestyle and goals.

  • Death benefit protection

    Some annuities also offer a guaranteed death benefit to your beneficiaries, providing additional financial security for your loved ones.

  • Customizable features

    Add optional riders for benefits like inflation protection or guaranteed minimum income, so your plan adapts as your needs change.

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Which annuity is best for your retirement plan?

There are several different types of annuities. Understanding how they work can help you choose the best fit for you.
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What’s the difference between “annuities” and “life insurance”?

While annuities and life insurance are both insurance-based solutions, they have different purposes.

  • Annuities

    Annuities are meant to give you guaranteed income for your lifetime. In exchange for a lump-sum or a series of payments, an insurance company then pays you back a regular income stream for as long as you live.

  • Life insurance

    Life insurance is designed to offer financial protection for your loved ones in the event of your death, helping them manage expenses and preserve their lifestyle in your absence.

6 steps to the right annuity strategy

Choosing the right annuity starts with knowing what you want your retirement to look like. Start with the 6 steps below.
  1. 01

    Define your retirement goals

    Think about what you want your annuity to achieve. This can range from having a guaranteed lifetime income to protecting your principal to leaving a legacy for your loved ones.

  2. 02

    Assess your risk tolerance

    If you want to protect your principal and have investment growth, a fixed annuity may be right for you. If you're a little more comfortable with market risk and seeking higher returns, consider a variable annuity.

  3. 03

    Forecast your income needs

    Estimate how much income per year you'll need to cover “needs” such as food, housing and transportation as well as “wants” such as vacations, travel and renovations. This can help you choose the type of annuity that best fits your needs.

  4. 04

    Compare product features

    Consider features such as lifetime income riders, death benefits, or inflation protection. It is important to choose options that reflect your long-term goals and what matters most to you.

  5. 05

    Consider your timeline

    Choose when you want your annuity payments to begin, either immediately or later in life. Immediate annuities start paying shortly after you invest, while deferred annuities give you the flexibility to plan to have an income stream later in life.

  6. 06

    Consult a financial advisor

    A financial advisor can walk you through your options, clarify product details and fees, and help design a strategy that fits your goals. UBS Financial Advisors have extensive experience in helping clients achieve the retirement they want. Reach out to a UBS Advisor today to talk about your goals.

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