## What is a fixed term annuity?

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A fixed term annuity pays a guaranteed income for a specified term, at the end of which you’ll be paid a guaranteed amount (called a maturity value), which is agreed when you take out the product. This is generally calculated on your investment size, less any income you receive.

### What is LV annuity?

An annuity provides a guaranteed income for the rest of your life using your pension savings. If you value the reassurance of knowing you’ll receive a guaranteed income every year for the rest of your life without taking any investment risk, an annuity may be the right product for you.

**Is a fixed term annuity a good idea?**

A fixed term annuity can offer you both the security of a regular retirement income and the flexibility to invest in a different product later. If you like the idea of a regular income in retirement, but also the flexibility to change your mind later, a fixed term annuity could be a good option.

**What are the pros and cons of fixed annuities?**

Fixed Annuity Pros and Cons:

- 1) Guaranteed Returns.
- 2) Guaranteed Income.
- 3) Low Investment Minimums.
- 4) Tax Deferral.
- 5) Flexible Payout Options.
- 1) Limited Returns & Teaser Rates.
- 2) Fees, Commissions, and More Fees.
- Surrender charge: Most policies will incorporate some type of surrender charge.

## What happens at the end of a fixed term annuity?

Once you reach the end of the fixed annuities investment term, the money is yours. If you’re at least age 59½ and plan to use the money now, you can cash out entirely. However, if you’re younger than 59½, it isn’t ideal to cash out because the government will impose a 10% penalty on the gains.

### How much will my annuity pay?

An annuity will distribute a guaranteed income between $4,167 and $12,110 per month for a single lifetime and between $3,750 and $11,149 per month for a joint lifetime (you and spouse). The income amounts are factored by the age you purchase the annuity contract and the length of time before taking the income.

**What happens at the end of a fixed-term annuity?**