WHAT IS AN ANNUITY?

An annuity is NOT a life insurance policy, but is a contract made between you and the insurance company. In consideration for premium deposits to your account, the UNA pays you a declared interest rate as your money accumulates tax deferred. After a specified accumulation period you can receive payments from the annuity, providing you with one form of retirement income.

An annuity is NOT a savings account, but a retirement vehicle—and therefore tax penalties are applied if withdrawn prior to age 59 ½.

WHAT IS A TAX DEFERRED ANNUITY?

A tax deferred annuity allows you to postpone paying taxes on the earned interest paid to you by the insurance company (UNA) until the monies are withdrawn.  The tax pertains to the “earnings” portion of the annuity and is treated as “ordinary income” by the IRS.

WHAT IS A QUALIFIED TAX DEFERRED ANNUITY?

A qualified tax deferred annuity is an IRA  (Individual Retirement Account) such as Traditional, Roth, Sep; as defined, approved and accepted by the United States Internal Revenue Service (IRS).

HOW SAFE IS MY ANNUITY?

State law requires the insurance company (UNA)  to meet its contractual obligations to you by holding a reserve equal to the withdrawal value (principal plus interest less any early withdrawal fees, if applicable)  of your annuity. These reserves are reported to the State on a quarterly basis and audited on an annual basis providing the policy holder with reassurance and protection that their money is safe.

HOW MUCH WILL YOU NEED FOR RETIREMENT?

Experts suggest you will need approximately 65 – 85% of your current income to maintain your present lifestyle in retirement. If you want to increase your standard of living in retirement, you may even need more. While some expenses in retirement may drop such as job-related expenses and paying taxes, other expenses may increase.

You know the source of your income today. The money you live on in retirement will probably come from your pension, Social Security, personal savings and part-time work. Only one-third of Americans are saving what they’ll need to reach their retirement savings goal. If you’re relying solely on your work pension to fund your retirement years, get ready to take a pay cut. Most pensions weren’t designed to replace 100% of your working income. Today it’s up to you to make sure you’re putting enough away. So start saving today so the money will be there when you need it.