Fixed annuities are a popular choice for individuals who want a guaranteed interest rate and a stream of income they can't outlive. With a fixed annuity, the principal investment and a specified interest rate are both guaranteed. Certain restrictions apply. Guarantees are subject to the claims paying ability of Nationwide Life Insurance Company.
Annuities are a contract you purchase from an insurance company to help you accumulate assets for retirement. Please keep in mind that annuities have limitations. They are long term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses, or to fund short-term savings goals.
Fixed annuity features
Some of the advantages of fixed annuities include:
- Minimal investment risk exposure
- A tax deferral on earnings
- Access to your money (Withdrawals made before age 59½ are generally subject to a 10% early withdrawal federal tax penalty, in addition to ordinary income tax, and a contingent deferred sales charge – CDSC – may apply)
- Death benefits for your beneficiaries
For additional details about fixed annuities, read the 5-minute guide to fixed annuities.