Fixed Annuity
With an Aviva annuity, you contribute now and receive income in the future. It grows with a guaranteed interest rate and tax-deferred until amounts are withdrawn,* usually at retirement. Aviva also offers fixed indexed annuities.
How an annuity works for you
You have many choices to discuss with your Aviva agent. You get to choose the initial premium amount, how long you wish to let the annuity grow before you
annuitize it as well as withdrawal options.
How it grows in value
When you purchase your Aviva fixed annuity, you'll know the guaranteed
minimum interest it will earn. It will be the same every year. Your rate could
go up or down from year to year, but never below the minimum. In some cases
you'll receive a bonus added to your premium. A premium is simply the
money used to purchase the annuity, usually a lump sum.
How it's taxed
Your Aviva annuity grows tax-deferred. Unlike savings vehicles that are taxed
as you earn, your savings remains in your annuity, earning interest and causing
your retirement savings to accumulate even faster. You aren't taxed
on those earnings until you start taking the money out. But by that time
you'll likely be on a fixed income and in a lower tax bracket therefore
saving you money.*
How you receive income
When you decide to receive income from your annuity, depending on your annuity,
you have several options to choose from like systematic electronic withdrawals,
personalized checkbook access, guaranteed annuity payout options, and the
ability to receive guaranteed income for the rest of your life.
How to make the most of your annuity
The longer you wait to take money out of your annuity, the more it grows, and
the more income you'll have in the future. An annuity from Aviva also
has a death benefit, similar to life insurance although not tax free. It's
paid to someone you designate as the beneficiary. So you know it's
going to be there for the next generation as well.
How you're protected
Your annuity is guaranteed to never lose principal (your original premium)
during the accumulation phase. You're also guaranteed to receive a
minimum value if you surrender (or terminate) the annuity contract.
A few key features
• Tax-deferred interest accumulation
• Guaranteed death benefit
• Access to cash withdrawals
• Potential for income you can't outlive
Additional features
Premium Bonus
A premium bonus may be credited to all premiums received in the
first contract year of your Aviva annuity product.
Death Benefit
Upon the death of the annuitant, the full value of your annuity will be paid
in a lump sum to your named beneficiaries. Other settlement options may also
be available to your beneficiaries.
10% Free Withdrawal
Each contract year, you can withdraw up to 10% of your Aviva annuity's
prior contract anniversary accumulated value without incurring a withdrawal
charge or market value adjustment (MVA).
20% Cumulative Free Withdrawal
For any contract year immediately following a contract year in which no withdrawals
were taken, you can withdraw up to 20% of your annuity's prior contract
anniversary accumulated value without incurring a withdrawal charge or MVA.
During the withdrawal charge period, a 20% free withdrawal is the highest
cumulative free withdrawal amount that is allowed in any contract year.
*Taxable amounts withdrawn prior to age 59½ may be subject to a 10% IRS penalty in addition to ordinary income tax. Withdrawals are not credited with index interest for that term. Withdrawals in excess of the free amount may be subject to withdrawal charges and a market value adjustment and may result in the loss of principal if taken during the first 5-10 years of the contract.
Aviva does not authorize its agents, employees or representatives to give legal, tax or accounting advice. The information contained herein is our understanding of the current laws as they relate to annuities. These laws are subject to change in the future. Please consult your personal advisor for any tax, legal or accounting advice to determine if a single premium immediate annuity or a deferred annuity is right for you.
