Annuities and Retirement for Federal and Government Employees

The government offers a few different retirement plans for federal and government employees, but most of those plans come with too many restrictions, and most people don’t qualify for the tax-deferred status. There are other retirement plans that offer more flexibility and can guarantee a lifetime tax deferred income.

An annuity is a great way to ensure that you’ll have an income during your retirement; you’ll never have to worry about running out of money. Annuities also have zero market risk, which means that you’ll earn interest without losing money when the market is down. You can also choose whether you’d like to make one lump sum deposit or make payments over time. Unlike some other plans, annuities do not have annual fees and you’re guaranteed a tax-deferred income for the rest of your life. There are also no penalties for annual withdrawals like 401(k)s or other retirement plans. One of the greatest benefits of annuities is that there is no contribution limit – you can put as much money as you’d like into your annuity; most other retirement plans limit how much you can contribute. Because annuities are offered by life insurance companies, you can also have a death benefit with your annuity. This means that if you pass away, your beneficiaries will receive money from your annuity without going through the lengthy and costly probate process.

Federal Advantage Benefit Company offers annuities for government and federal employees. If you’d like to learn more, visit our annuities page. You can also fill out the form to the right, or call us at 888-340-7187 to have a certified agent contact you.

Check out some of our other blogs

• 14,000 Make Thrift Savings Plan Hardship Withdrawals

• FEGLI Option C is Not Best Option for Children's Coverage

• You Could Access Your Retirement Savings Sooner Than You Thought