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Annuities FAQs: Immediate Fixed Income Annuities

  • What is an immediate fixed income annuity?

    Immediate fixed income annuities can provide you with predictable income payments for life or a set period of time. You simply convert a portion of your assets into ongoing payments that will not be affected by market movements. Using additional assets, you can also purchase a feature—commonly referred to as a Cost of Living Adjustment (COLA)—that will increase your payments each year to help your income keep pace with inflation.

  • How is the income calculated?

    A number of factors go into calculating your income payments, including your age, gender, and the purchase amount applied to the annuity. You can use Fidelity's Guaranteed Income Estimator to estimate a payment or call 800-493-3004 for a personalized quote.

  • How does an income annuity payment differ from a systematic withdrawal plan?

    An income annuity payment is similar to a systematic withdrawal plan in that both can provide payments on a specific schedule. The difference is that only an income annuity can guarantee* income for the rest of your life. A systematic withdrawal plan allows you access to assets and gives you the ability to stop or start payments at any point during the payout period. There is a risk, however, that income could run out, depending upon how the underlying investments perform and the amount of the withdrawal.

*Guarantees are subject to the claims-paying ability of the issuing insurance company.
Fixed annuities available at Fidelity are issued by third-party insurance companies, which are not affiliated with any Fidelity Investments company. These products are distributed by Fidelity Insurance Agency, Inc., and, for certain products, Fidelity Brokerage Services, Member NYSE, SIPC. A contract's financial guarantees are solely the responsibility of and are subject to the claims-paying ability of the issuing insurance company.
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