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Annuity statements tell you how your retirement accounts are performing. They show how your money is performing, how much your savings have grown, and what you might expect to earn in a certain timeframe. By reading and analyzing your annuity statement, you can make more intelligent choices about your future savings.
Whether you’re a new or seasoned investor, read on to better understand your annuity statement’s information.
An annuity statement is a document from an insurance company or financial institution showing your annuity contract's current status and performance. It provides an overview of your account, including details about your account's value, contributions, withdrawals, and any changes. You will receive a statement once a year if you have a fixed annuity and quarterly if your annuity is variable or fixed-indexed.
It’s critical to know how to read an annuity statement so you can monitor your financial future. This account breakdown helps you plan savings by revealing whether you have enough to cover your expenses.
By reviewing these statements regularly, you can:
Note: The terms annuity report, statement of annuity paid, and annuity statement may sound similar, but they refer to different documents. Here’s how to use them:
Reading an annuity statement is quite simple when you break it down into its primary parts. Here are the nine essential components of an annuity statement, what they indicate, and how to interpret them.
This section lists your personal details and annuity contract basics. It includes your name, address, contact information, and a unique contract number. The insurance company uses this information to track your account and link all communication and transactions to the right person.
This section outlines your account's original terms and conditions. It shows when you bought the annuity, how long the contract lasts, and the main terms, such as interest rates and interest crediting options.
The financial summary displays your invested contribution amount, earned or lost interest, and current account total. This information helps you understand how your annuity is performing.
The surrender value shows how much money you’d receive if you canceled your contract early. It's usually less than your account’s total value due to early withdrawal fees or penalties. This section helps you understand the financial consequences of ending your annuity before the agreed-upon time.
This balance tells you exactly how much this account or contract is worth. It includes all the money you've put in and any changes in value.
Some annuity types have a benefit base, which is a guaranteed minimum value, regardless of market performance. It’s a safety net that ensures your baseline amount for future income, even if your interest credited doesn't perform well.
If you've added extra features to your annuity, the income rider summary explains how those additions work. Income riders can provide unique benefits like guaranteed lifetime income and risk management. The summary shows how these extra features support your policy and what they might mean for your payouts.
This section breaks down the costs associated with your annuity, which can include administrative fees, early withdrawal charges, and penalties. These statements help you understand how fees impact your overall return. When you work with Gainbridge®, you can avoid the middleman and enjoy no hidden fees.
This date marks when your annuity matures — meaning when you can or must start receiving payouts from your annuity. Knowing this date helps you effectively plan out your financial resources.
Making sense of your annuity statement can be challenging, whether you’ve read several of them or you’re looking at your very first. Here are some helpful tips to keep handy whenever you receive a statement.
Closely review the allocations on your annuity statement. Understanding your allocations and their performance will indicate how well your annuity is working toward your financial goals.
Check over your annuity fees, as administrative and one-off fees could be more than you anticipate. Unreasonable costs may influence the value of your account, which might mean you need to adjust your savings strategy. With Gainbridge®, you’ll never see surprising charges or fees.
The surrender value tells you how much money you’ll receive if you cash your annuity out early. Knowing this value gives you peace of mind and flexibility, especially when unexpected expenses arise.
Keep your own records and compare them with your statement. Review your contributions, withdrawals, and transactions so you can spot errors. Identifying mistakes can save you from financial problems later.
It's normal for the value of variable or indexed annuities to fluctuate with market changes. Avoid making quick decisions based on short-term dips in value. Instead, focus on your account’s long-term performance and how it fits into your savings strategy.
Gainbridge®’s SteadyPace™ is a valuable option for those looking to protect their financial future, offering a guaranteed 5.50% APY1 that can help your money work harder for you. Gainbridge® also removes the middleman, so there are no hidden commission, admin, or maintenance fees.
All guarantees are based on the financial strength and claims paying ability of the issuing insurance company. SteadyPace™ is issued by Gainbridge Life Insurance Company (Zionsville, Indiana). Plan with Gainbridge®’s SteadyPace™ and enjoy more financial peace of mind.
This statement gives you an overview of your annuity’s performance over the past 12 months. It helps you track your annuity’s growth and understand the account’s financial health.
Contact your insurance company’s customer service via phone or their website to request a statement. Alternatively, log into your online account and look for the Statements or Documents section to download your latest statement. If nothing else works, you can visit a company location and request a copy.
No, annuity providers don’t typically issue monthly statements. Once you’re receiving payouts from your provider, they might send you a monthly payment confirmation. And a statement of annuity paid will give you a breakdown of all the payments you received, should you need it for tax purposes.
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1 Annual percentage yield (APY) rates are subject to change at any time, and the rate shown may no longer be current.
This communication is for informational purposes only. It is not intended to provide, and should not be interpreted as individualized investment, legal or tax advice.
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