Annuities are contracts with insurance companies designed to help meet retirement and other long-term goals, and that have the ability to provide a steady stream of income. PNC Investments can help assess whether an annuity is appropriate for you.
How do fixed annuities work?
Fixed annuities earn a set return, guaranteed by the annuity company. You pick how many years you want the fixed annuity to last. The annuity company will then pay the return each year guaranteed. This type of annuity is similar to a bank’s certificate of deposit with less protections.
How long do fixed annuities last?
When you sign up, you pick how many years you want the fixed annuity to last, typically between three to 10 years. The insurance company then guarantees to pay you the annuity interest rate over this period. There are two other types of annuities to choose from: variable annuities and fixed index annuities.
