How will you get paid in retirement?

What’s the right mix of investments to support your retirement income needs? Apparently, that question is becoming the number one question asked by retirees looking to gain some peace of mind and put aside worries of running out of money in retirement. 

Do you plan to work in retirement or do volunteer work? Perhaps you want to travel or pursue a hobby. You have the time but not sure what the future holds and hesitant to spend retirement assets for fear of coming up short later on down the road. How important is guaranteed income, access to capital, leaving a financial legacy?

Amerity Retirement Solutions at Amerity Financial help you put these concerns to rest. We specialize in working with near-retirees and retirees who for the most part are done earning and feel they have accumulated enough to get them through retirement. We see our job as enabling you to be confident and the standard of living you worked for can be realized.

A Amerity study last fall found that three out of four retirees don’t have an income plan, and of that group, one-third said they didn’t create a plan because they were afraid of what it might tell them.

The unknown is a primary cause of anxiety. Will tax rates be higher in the future?  Could inflation actually force cut backs on your spending? Will Social Security be there?  What about Medical expenses? How long will my retirement need to last? Are your investments going to be able to grow at a rate to keep your retirement base or will you have to start spending down your principal? Will you be able to count on drawing out 5% annually or is 3% the maximum to maintain your base? What is your safe withdrawal rate?  These unknowns are all reason to be concerned. 

Income is obviously one of the most crucial issues in retirement. If guaranteed income is important to you then contact us to learn more about one of our Amerity Retirement Solutions and take the guess work out of your retirement income.

    If you want predictability of knowing exactly how much each payment will be for the rest of your life.  

    Offers a smaller payment up front, but has the potential to increase each year by the interest rate credited to your plan.

    If you expect to live a long time and want your income to keep up with rising costs of living, this option has the potential to keep up with inflation each year.


Guaranteed Lifetime Income Options

What are Income Riders?

Income riders are designed to provide lifetime income, safety, predictability, guarantees, and peace of mind to people who are worried about running out of money in retirement.

What is a Guaranteed Lifetime Income Rider?

The Guaranteed Lifetime Withdrawal Benefit Rider was designed to allow the annuity owner to make guaranteed withdrawals from the annuity without having to annuitize. Unlike annuitizing the Income Rider method of guaranteeing income also allows you control and access to your remaining annuity cash value.  The amount that can be withdrawn is based on a percentage of the total amount in the annuity. The Guaranteed Lifetime Income Rider guarantees that the annuity owner will receive an annual payment or a guaranteed withdrawal payment for life, even if the policy’s accumulation value drops to $0.00 during the life of the annuity. This annuity rider has become a “must have” add-on for most index annuity products.

Are there more than one option with choosing an Income Rider?

Income riders make it easy for you to receive your lifetime income payments throughout your retirement. Although Income Riders are optional they have become a “must have” when purchasing an annuity. The beauty of the income riders lies in the simple options that are designed to fit your needs. Some offer flexibility depending on the choice of your annuity to choose between predictable lifetime income payment, one that has the potential to increase year after year, or one that can protect your retirement income from the effects of inflation. Whichever rider you choose, when you are ready to start your income payments, your payment is guaranteed for the rest of your life – no matter how long you live.  

How does the Income Rider work?

On the day you purchase your annuity your Amerity Financial Professional will explain the income riders that will be available to you depending on your needs. When you are ready to begin your retirement your maximum income payment is a percentage of your withdrawal value that is based on your age when payments begin. Your payments are guaranteed for the rest of your life for as long as you live.

Can I cancel my Income Rider?

With most Income Riders you can cancel the rider anytime. Once the rider is terminated, it may not be reinstated.

Additional Flexible Withdrawal Features

Additional access to your money when and how you want it, that can help you meet unexpected expenses or allow you the flexibility to control when and how much taxes you pay.

Withdrawal Features for Fixed Annuities

Fixed Annuities are financial vehicles generally purchased to satisfy a few important objectives such as asset accumulation, tax-deferred growth, to supplement retirement income and to pass funds to beneficiaries. However; emergencies do arise and access to your money is always a concern.

It is important to us at Amerity Financial that you are aware of the withdrawal features that may be available in a Fixed Annuity.

  • Penalty-Free Withdrawals
  • Lump Sum or Partial Distribution
  • Extra Access for Nursing Home, Terminal Illness or Unemployment
  • Death Benefit
  • Required Minimum Distribution
  • Income Option
  • Annuitization


Penalty-Free Withdrawals

Most annuities allow you to withdraw up to 10% of the total accumulated value each year during the surrender charge period without incurring any surrender charges. After surrender charge periods are over you can withdraw 100% of your money without penalty or leave all or part of your money to continue in the annuity penalty free. Surrender charges only apply during the contracts surrender charge period, which differ from annuity to annuity.

Lump Sum or Partial Distribution

You still have access to your accumulation value during the surrender charge period of your annuity contract, but a surrender charge would be applied to all withdrawals that exceed the penalty-free withdrawal amount. The surrender charge is a percentage of your accumulation value. This percentage declines over the surrender charge period. The surrender charge period and associated surrender charges allow the company to invest your money on a long-term basis, and as a result credit higher yields than possible with shorter term vehicles.

Extra Access for Nursing Home, Terminal Illness or Unemployment

Your annuity contract may provide additional withdrawal features in the event of Nursing Home Confinement, Terminal Illness, or Unemployment. This increases your penalty free withdrawal amount if you are still in the surrender charge period.

Death Benefit

Annuities offer the ability to name beneficiaries. Upon death of the annuitant or an owner, annuity companies pay the death benefit of your annuity to your beneficiary. Most annuities waive all charges and fees at the death of the owner/annuitant and pay the full accumulation value to beneficiaries even though the annuity is still in the surrender charge period. Naming beneficiaries may minimize the expense, delays, and publicity of probate and can be incontestable if structured properly.

Required Minimum Distribution

If you have a qualified IRA or TSA and you are age 70 ½ or older, the Federal Government mandates Required Minimum Distributions (RMDs) must be withdrawn each year. This Federal requirement applies to all IRA's / qualified accounts including annuities. All RMD amounts withdrawn from annuities are penalty free, even if they exceed the 10% penalty-free amount normally available from your annuity.

NOTE: If the RMD exceeds the 10% penalty-free amount and the RMD is taken penalty-free, no additional penalty-free amount will be available during that contract year.

Income option: Guaranteed lifetime Income Riders

Unlike annuitization, your annuity may offer an income option that allows you to receive a guaranteed income for life and still have access to the available cash value. These flexible options guarantee growth rates of 5% - 10% per year to the Income value, which is separate from the Accumulation value. The result is guaranteed growth of your principal for the purpose of withdrawing a guaranteed income for life when you are ready to turn on the income stream. Unlike annuitization, you still have the ability to take part or all of your annuities remaining cash value (minus surrender charges if they apply) if you choose. This option may come at a cost, but usually less than 1/2 %.


Annuitization results from your election to receive regular income payments from your contract. An election to annuitize your contract is irrevocable. If you elect to annuitize your contract, you will no longer be able to exercise any liquidity provision that may have previously been available. Annuitization is available but never required.


Neither Amerity Financial, nor any agents acting on its behalf, should be viewed as providing legal or tax advice. Consult with and rely upon a qualified advisor. Please contact your sales representative for state availability of various annuities and their specific provisions as outlined in their contracts.