What Should I Do With My Secure Index Five Annuity?
The Voya Secure Index Five Annuity was a flexible premium deferred fixed index annuity designed to help individuals save for retirement with the promise of principal protection and potential growth linked to an index. Although this product is no longer being sold, many individuals still hold these annuities and may have questions about what they should do next.
If you own a Secure Index Five Annuity and are wondering about your options, this guide will help you understand how the annuity works and what steps you can take to make the most of your investment.
How the Voya Secure Index Five Annuity Works
- Principal Protection This annuity guarantees that your initial premium and any previously credited interest cannot be lost due to market downturns. This feature ensures your principal remains safe even during periods of market volatility.
- Interest-Crediting Strategies The Secure Index Five Annuity offers a variety of interest-crediting strategies, including:
- Fixed Rate Strategy: Provides a guaranteed interest rate declared annually.
- Point-to-Point Cap Index Strategy: Credits interest based on the annual percentage change in the S&P 500® Index up to a specified cap.
- Monthly Cap Index Strategy: Bases interest on the sum of monthly percentage changes in the S&P 500® Index, subject to a monthly cap.
- Performance Trigger Index Strategy: Credits a predetermined rate if the S&P 500® Index value at the end of the contract year is greater than or equal to its value at the beginning of the year.
- Withdrawal Options
- Penalty-Free Withdrawals: After the first contract year, you can withdraw up to 10% of your accumulation value each year without a surrender charge.
- Surrender Charges: Withdrawals exceeding the free withdrawal limit in the first five years are subject to surrender charges, which decrease annually and disappear after the sixth year.
- Additional Features
- Nursing Home and Terminal Illness Waivers: These waivers allow you to access your funds without surrender charges if you are confined to a nursing home or diagnosed with a terminal illness.
- Death Benefit: If you pass away, your beneficiaries will receive the full accumulation value, potentially avoiding probate.
- Tax Deferral: The annuity grows tax-deferred, meaning you won’t pay taxes on the interest until you make a withdrawal.
Your Options Moving Forward
Since the Voya Secure Index Five Annuity is no longer being sold, you may be considering whether to keep your current annuity or explore other options. Here are some potential steps you can take:
- Keep Your Annuity If your Secure Index Five Annuity is meeting your financial goals, you can continue to hold it. You’ll benefit from the principal protection, interest-crediting strategies, and tax-deferred growth.
- Review Your Annuity’s Performance It’s important to periodically review how your annuity is performing, including the interest rates, caps and spreads that are being applied to your chosen strategies. This helps ensure that your investment is aligned with your retirement goals.
- Consider Replacing Your Annuity If you’re not satisfied with your current annuity’s performance, or if your financial needs have changed, you may want to consider replacing it with a new annuity. Newer products may offer:
- Higher interest-crediting potential
- More flexible withdrawal options
- Enhanced income riders for lifetime income
How We Can Help
At The Annuity Expert, we specialize in helping individuals navigate their annuity options. Whether you want to:
- Review your current annuity to ensure it’s still the right fit for your financial plan
- Understand your withdrawal options and potential tax implications
- Explore new annuities that may offer better benefits or higher returns
- Replace your Secure Index Five Annuity with a more suitable product
Our team is here to provide personalized guidance and answer any questions you may have.
Contact Us
If you need help, have questions, or want to explore replacing your Voya Secure Index Five Annuity, contact us at The Annuity Expert. We offer free consultations and can help you compare annuities to find the best option for your needs.
Book a Call Today, and let us guide you toward a more secure financial future!
Book A Free Consultation
Get help from a licensed financial professional. This service is free of charge.
Let Us Answer Your Questions
Not quite ready for a meeting, but you have a question that needs answering? We’re happy to help. Leave an inquiry below, and one of our staff will respond via email.