What is a Fixed Amount Annuity?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

What is a Fixed Amount Annuity?

A fixed-amount annuity is a financial product typically used for retirement savings or income. It involves an individual paying a lump sum or a series of payments to an insurance company. In return, the company provides steady payments for a specified period or the annuitant’s lifetime. These payments are predetermined and do not change, hence the term “fixed amount.”

Fixed Amount

How Does a Fixed Amount Annuity Work?

  1. Initial Investment: You pay a lump sum or make periodic payments to the annuity provider.
  2. Accumulation Phase: Your money may earn interest during this period, depending on the annuity’s terms.
  3. Distribution Phase: After a specified period, the annuity provider starts making regular, fixed payments to you.


  1. Lifetime Annuity: You receive a fixed monthly payment for life, regardless of how long you live.
  2. Term Certain Annuity: You receive payments for a specific number of years, e.g., 20 years.

Benefits and Drawbacks


  • Predictable Income: Provides a steady and predictable source of income.
  • Security: Good for risk-averse individuals who prefer stability over high returns.


  • Inflation Risk: Fixed payments may lose purchasing power over time due to inflation.
  • No Investment Growth: The payments are fixed and do not benefit from potential higher returns from market investments.

Comparing Fixed Amount Annuity with Variable Annuity

FeatureFixed Amount AnnuityVariable Annuity
PaymentsFixed and predictableVaries based on investment performance
Risk LevelLowHigher, depends on market
Inflation AdjustmentNonePossible, if investments perform well
SuitabilityRisk-averse individualsThose comfortable with market risk
What Is A Fixed Amount

How We Can Help

At The Annuity Expert, we understand the emotional toll of financial uncertainty and the desire for a stable retirement. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we are here to guide you toward the best solutions at the lowest costs.

We believe in providing personalized service tailored to your unique needs and preferences. Our goal is to help you find the right fixed amount annuity that offers security and peace of mind for your retirement.

We fight against financial instability and high-risk investments that do not align with your retirement goals. We stand for finding the best solution at the lowest costs, ensuring you receive the maximum benefit from your investments.

Fixed Amount Settlement Option

What We Recommend

  • First Step: Initial Consultation
    • What happens: During your initial consultation, we will discuss your retirement goals, financial situation, and risk tolerance.
    • Main benefit: You receive a personalized plan that aligns with your specific needs and objectives.
  • Second Step: Plan Development
    • What happens: We develop a customized retirement plan that includes a suitable fixed amount annuity.
    • Main benefit: You gain a clear understanding of how the annuity will provide you with a steady and predictable income.
  • Final Step: Implementation and Ongoing Support
    • What happens: We help you implement the plan and provide continuous support to ensure your annuity performs as expected.
    • Main benefit: You enjoy a secure retirement with a reliable income stream, free from financial worries.

Features We Provide

  1. Personalized Plans: Tailored to your individual needs and financial goals.
    • Benefit: Ensures your retirement strategy is unique to you, maximizing your benefits.
  2. Expert Guidance: Access to experienced professionals with extensive knowledge.
    • Benefit: Receive reliable advice and support, helping you make informed decisions.
  3. Ongoing Support: Continuous assistance and monitoring of your annuity.
    • Benefit: Peace of mind knowing you have expert help at every step.

Addressing Common Objections

  • Objection: “Fixed annuities don’t adjust for inflation.”
    • Solution: While fixed payments may not adjust for inflation, they provide a reliable income, and we can help you integrate other strategies to mitigate inflation risks.
  • Objection: “There is no investment growth potential.”
    • Solution: Fixed annuities are designed for stability, not growth. They offer peace of mind with predictable income, which is crucial for risk-averse individuals.

Consequences of Not Working with Us

Choosing not to work with The Annuity Expert could mean missing out on the security and stability a fixed-amount annuity provides. Without our guidance, you might face financial uncertainty and the stress of managing retirement income on your own. On the other hand, working with us ensures you have a secure, predictable income stream, allowing you to enjoy your retirement without financial worries.

Contact us for free advice or a quote today!

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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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