Annuities
Annuities are financial contracts some people use to create reliable income streams and plan for the future. We explain how the common types work so you can understand whether they fit your situation.
Model Your Scenario
Why this calculation matters: An annuity converts a premium into a stream of income. The estimator shows how a purchase amount, payout type (immediate vs. deferred), and payout rate translate into estimated annual and monthly income — helping you see the mechanics before considering a specific product.
Interactive Annuity Income Estimator
Educational tool to visualize how a premium can convert into a stream of guaranteed income.
10 years of tax-deferred growth before payouts begin.
Illustrative payout rate — actual rates vary by age, product, and insurer.
About $1,120 per month for life, starting at age 65.
*For educational purposes only. Annuity guarantees depend on the claims-paying ability of the issuing insurer. Actual rates, fees, surrender charges, and riders vary by product and personal circumstances.
Explore Annuity Options with MarkistWhat the result means
The estimated annual and monthly income is what the premium could generate at the chosen payout rate. For deferred annuities, the premium grows during the deferral period before payouts begin. This is an illustrative model, not a quote — actual rates vary by age, product, and insurer.
Recommended next step
Bring your estimate to a consultation. We'll explain fixed, indexed, and variable options in plain language, weigh the trade-offs for your situation, and help you decide whether an annuity fits — with any recommendation made only after a licensed review.
Carries your scenario summary to the consultation form — no sensitive data.
Who this is for
Pre-retirees and retirees who want to understand how guaranteed income could fit alongside their other retirement income, and who want to weigh the trade-offs — including fees, surrender charges, and inflation — before deciding.
Planning considerations
- How fixed, indexed, and variable annuity concepts differ in growth and guarantees
- The role guaranteed lifetime income options can play in safeguarding retirement from market volatility
- Key questions to consider (surrender charges, fees, inflation riders) before any decision
Immediate vs. deferred: timing the income
An immediate annuity begins paying income shortly after purchase — useful for someone already retired who wants income now. A deferred annuity grows your premium tax-deferred first, then turns on income later — useful for someone still accumulating who wants a future income floor.
Guarantees and trade-offs
Annuities can provide guaranteed lifetime income, which helps protect against outliving your savings and market volatility. But guarantees come with trade-offs: surrender charges for early withdrawals, fees for riders, and the risk that inflation erodes purchasing power over time. Understanding these before buying is essential.
Common Questions
How does an annuity work?
An annuity is a financial contract some people use to create income or grow money tax-deferred. Common types include immediate/income annuities and deferred annuities. Whether one fits your situation is an individual question.
What's the difference between fixed, indexed, and variable?
Fixed annuities offer a set rate. Indexed annuities tie returns to a market index with downside protection. Variable annuities invest in subaccounts with returns that fluctuate. Each balances growth potential and risk differently.
Are annuity guarantees guaranteed?
Annuity guarantees depend on the claims-paying ability of the issuing insurer. That's why understanding the insurer, the fees, surrender charges, and any riders matters before any decision.
Ready to talk about annuities?
Schedule a no-obligation consultation and we'll walk through what fits your goals — in plain language, on your timeline.