Do Annuities Grow In Value?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Understanding the Growth in Annuities

Annuities can indeed grow in value, but this depends on the type of annuity.

Deferred Annuities

Key Features:

  • Initial Investment: A lump sum or series of payments.
  • Growth Phase: The investment accumulates interest over time.
  • Types of Growth:

Immediate Annuities and Annuity Payouts

Key Features:

  • Immediate Payouts: Begins payments almost immediately after a lump sum investment.
  • Fixed Payments: The amount typically does not change over time.
  • Growth Aspect: There is no accumulation phase; hence, the value does not grow.

Comparing Growth Potential

Annuity TypeInvestment PhaseGrowth PotentialPayment Structure
Deferred AnnuitiesYes (Accumulation Phase)Yes (Interest or Market-Based)Begins Later
Immediate AnnuitiesNo (Immediate Payouts)No (Fixed Payments)Regular and Immediate


While deferred annuities grow in value during their accumulation phase, immediate annuities and annuitization payouts offer fixed payments without value growth. Understanding these differences is crucial for making informed financial decisions. Contact us today for a free quote.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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