Common questions, answered.

It depends on your goals. Annuities are designed to provide guaranteed lifetime income, principal protection, or tax-deferred growth. If those priorities align with your retirement plan, an annuity can be a strong fit — but it's not the right tool for every dollar. Our free assessment helps clarify whether it makes sense in your situation.

A common guideline is to allocate enough to cover essential retirement expenses not already met by Social Security or pensions — often 25–40% of retirement assets. The right amount depends on your income needs, other assets, and risk tolerance.

The main categories are fixed (guaranteed interest rate), fixed indexed (growth tied to a market index with principal protection), variable (market-based subaccounts), and immediate/income (converts a lump sum into guaranteed income). Each has different trade-offs between growth, protection, and income.

No. A properly executed IRS Section 1035 exchange allows you to transfer funds from one annuity to another without triggering a taxable event. Your cost basis carries over to the new contract.

Section 1035 of the IRS code permits like-kind, tax-free transfers between certain insurance and annuity contracts. The funds move directly carrier-to-carrier — you never take possession, which preserves the tax deferral.

If you're inside a surrender window, there may be charges. A licensed specialist will quantify them precisely and help you weigh the cost against the projected upside. In many cases, modern contracts include bonus credits that offset the charge.

Most 1035 exchanges complete in 2–4 weeks from signed paperwork to a funded new contract. New annuity purchases are typically funded in 1–2 weeks.

No. AnnuityReplacement.com provides educational illustrations only. Any decision to buy or exchange an annuity should be made in consultation with a licensed financial professional and your tax advisor.

If you choose to work with a licensed specialist who offers a new contract, the issuing insurance carrier compensates them — there is no out-of-pocket cost to you.

No. Your assessment answers are used to generate your illustration. Your contact details are only shared with a licensed specialist if you explicitly request a call.

Newer contracts may already be optimized. The assessment will tell you whether an exchange likely makes sense based on your purchase year, fees, and rider structure.