Penn Mutual Single Premium Immediate Annuity Review
Enjoy Your Retirement With Income That Lasts a Lifetime
For many of us, retirement provides the freedom we’ve anticipated over the years. The good news is that people are living longer and enjoying more of that long-awaited free time in retirement — even 25-30 years.
In fact, an average 65-year old couple has a greater than 50% chance that one of them will live to age 90.*
The challenging part is ensuring that you don’t outlive your retirement savings. As you begin this new phase of life, you may want to consider a retirement solution that guarantees steady income for as long as you live — no matter how long that is.
* Source: Annuity 2000 Mortality Table
Single Premium Immediate Annuity: Income for life
A Single Premium Immediate Annuity, or SPIA, from Penn Mutual can deliver protection and peace of mind by providing income even if you live beyond normal life expectancy. A SPIA locks in a competitive rate that provides a series of guaranteed payments that can last for as long as you live. Or, you can choose a stream of payments that lasts for a specific time period. No matter which payout option you choose, payments remain consistent in both amount and frequency. Penn Mutual’s SPIA can provide guaranteed, steady income with just one purchase payment. All guarantees are based on the claims paying ability of the issuer.
Eliminate investment risk
Unlike many other investments, your SPIA is not subject to market volatility. Regardless of what happens within the financial markets, your SPIA income is protected from loss.
Protect your investment from inflation
In retirement, there are no wage increases to help you keep pace with inflation. And if you’re retired for 20 years or more, inflation can quickly erode your savings. With Penn Mutual’s SPIA, many income options offer you additional protection with a Cost of Living Adjustment (COLA) benefit. This feature is designed to help offset rising costs and the impact inflation can have on your retirement income. Please note, the COLA benefit is available for non-qualified contracts only.
Maximize your investment
I contacted Immediate Annuities.com to buy one of my immediate annuities. They were prompt, very responsive, paid attention to detail, understood my objectives, and were superb when it came to staying on top of seeing the funds transfer and issue of new policy documents through to completion.
A Single Premium Immediate Annuity is a good way to turn a lump sum of money into regular, guaranteed income. Not only can a SPIA provide immediate income, but it also offers tax deferral. When you buy your SPIA with after-tax dollars, you only pay taxes on earnings when the money is withdrawn. With other investments, such as a CD, you must pay taxes each year on earned interest even though you may not be accessing your money until the end of the CD term.
Choose the guarantee that’s right for you
Everyone has different income needs, which is why a Penn Mutual SPIA offers a variety of income options, including:
1. Income for as long as you live
2. Income for as long as you and another person live
3. Income for a specific period of time.
Protection for your loved ones
Additionally, in the event of your early death, you can guarantee that your beneficiary will receive payments for a certain period of time, anywhere from 5 to 30 years. Or you can choose your payments to continue until the amount of your initial premium has been paid out.
A Better Way of Life
Founded in 1847, The Penn Mutual Life Insurance Company has honored each and every financial commitment throughout its long history. We have a long and distinguished reputation for consistent growth, profitability and prudent management. It’s a track record you can rely on, backed by high ratings from A.M. Best, Moody’s Investor Services and Standard & Poor’s. You can count on us to continually strive to help bring you a better way of life.