Annuities

An annuity is a financial services product issued by a life insurance company that provides you with income payments in return for premiums you have paid. Premiums might be paid over a period of time or in one lump sum.

Annuities allow you to:

• • Accumulate savings to supplement your retirement income from Social Security,
    pension plans and other sources
• • Save money on a tax-deferred basis
• • Invest for your retirement with no limit on the amount of money you can contribute.

Annuities Offer Advantages

Annuities are attractive additions to retirement planning portfolios because they offer advantages over some other types of investment vehicles and can help bridge the gap created by the shortcomings of traditional sources of retirement income:

• • Social Security income alone may not be enough to cover living expenses for
    most retirees.
• • Many sources of retirement income are taxable, which can greatly reduce the
    amount of retirement savings available to cover living expenses.
• • Most companies have replaced employer-funded defined benefit pension plans
    with employee-funded investments such as 401(k) plans.
• • Annual contributions to 401(k), IRA, and other government-created retirement plans
    are limited by law.

In addition, annuities offer many options for paying premiums and structuring benefits that allow you to customize the investment to fit your individual needs.

For more information on how AAA can help you choose the right annuity for you, please call 888.AAA.OHIO (222.6446).

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