An immediate annuity can provide you with predictable income during retirement that you can use for essential living expenses. With an immediate annuity, you can provide guaranteed income for life or a set period of time. You can begin taking income immediately or defer your payments for up to a year.

Benefits of immediate annuities

Steady income that starts immediately

With a single-premium immediate annuity, you can turn a lump sum from an inheritance, sale of a business or other assets into a stream of income.

Income you can’t outlive

If you purchase an immediate annuity with single or joint life options, you’ll have guaranteed income for life no matter how long you live.

Access to your money

If you purchase a Nationwide® immediate annuity and elect a term-certain or Life with Cash Refund option, you’ll have access to your money through a Liquidity feature1.

Hedge against inflation

A cost-of-living adjustment (COLA) can be elected at contract issuance that will automatically increase your annual payment by 1%, 2%, 3%, 4% or 5%. Please note that based on the tax status of the contract and age of the contract owner, not all COLA percentages may be available at all times. Check with Nationwide for availability.

Nationwide’s immediate annuity product

INCOME Promise Select® is a fixed, immediate annuity that provides guaranteed retirement income for as long as you need it.

How do immediate annuities work?

Decide how much you want to put in your immediate annuity to cover essential living expenses or income for other expenses in retirement.


If you fund an immediate annuity with money you’ve already paid taxes on, then you’ll have a source of income that is partially tax-free.


Select the frequency at which you would like to receive income payments, along with how long that payment will last for – a lifetime, or specified period of time.

Not sure if an immediate annuity is right for you? Compare all annuity types.

Topics to discuss with your financial professional

  • How can an immediate annuity provide income before you reach full retirement age for Social Security?
  • Risk tolerance. What type of investor are you?
  • Payout options. What are the different ways you can take income from an immediate annuity?

Immediate annuities limitations and restrictions

Immediate annuities are long-term, tax-deferred contracts you purchase from an insurance company that provide immediate regular payments in exchange for a lump-sum investment. These payments are guaranteed to last for life or a specified period of time.

  • Withdrawals are taxed as ordinary income
  • A 10% tax penalty will be applied on top of ordinary income taxes if you are younger than 59½
  • With a Liquidity feature1, a $50 fee will be deducted from the remaining liquidity value or lump-sum withdrawal for each withdrawal taken
  • Annuity guarantees are subject to the claims-paying ability of the issuing insurance companies
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[1] Liquidity feature is not available in New York.

Neither Nationwide nor its representatives give legal or tax advice. Please contact your attorney or tax advisor if you have specific tax questions.

INCOME Promise Select, a single-premium immediate fixed annuity, is underwritten by Nationwide Life Insurance Company. INCOME Promise Select is a service mark of Nationwide Mutual Insurance Company.

Guarantees and protections are subject to Nationwide's claims-paying ability.