Are you enjoying retirement now? Making ends meet with Social Security, savings and a pension, if you’re lucky, is a comfortable place to be in, but being in this situation may not help you tackle inflation or any other unexpected expenses. The risk of losing big may hold you back from investing any of your savings in the stock market. After all, you must keep your retirement savings safe. But how can you supplement your income from Social Security and pensions? By taking a portion of your savings and using it to buy immediate annuities, you guarantee yourself a set income for life.

With a monthly payment from an immediate annuity, you can supplement your existing income. An immediate annuity can never be depleted – in that way, immediate annuities are similar to Social Security. In return for a lump sum, called a premium or principal deposit, you would be paid a monthly (or a frequency of your choosing) sum for the rest of your life. Until you die, whether that is 10 years or 30 years, you will continue to receive the same payment. When you die, payments usually cease in a traditional lifetime immediate annuity, however, you can select options that transfer annuity payments to a surviving spouse or you can add options for guaranteed payments for a set number of years.

This set number of years is called “period certain.” For example, if you purchase an immediate annuity with 30 years period certain, even if you pass away after five years, your estate or beneficiary receives the remainder of immediate annuity payments. You can also add a payment term to immediate annuities, called the joint and survivor option, so that the immediate annuity payments are still received by your spouse until his or her death. These options typically result in a lowered monthly payout amount, but can provide you with a comfortable feeling that your spouse will be provided for after your death.

Once purchased, it is usually difficult to get out of immediate annuity contracts, so it is not a good idea to use all of your retirement savings to purchase an immediate annuity. Some immediate annuities allow you to cash in your contract for a commuted lump sum value if needed. However, it’s important to understand all of terms and conditions of immediate annuities before buying.

For a safe, easy way to increase your income in retirement, consider immediate annuities. The Annuity Specialists are available to help you decode the immediate annuities available today, so call 1-888-261-6237 to speak to one. Our Specialists have information from insurance companies across the U.S. and can walk you through the buying process for immediate annuities.