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Vanguard - annuities through Vanguard - deferred fixed annuities

How deferred fixed annuities work

A deferred fixed annuity involves a contract between you and an insurance provider. In exchange for your payment, the insurance company guarantees you a fixed interest rate over a period of time that you choose, in addition to guaranteeing your principal.*

Frequently asked questions about deferred fixed annuities »

Benefits of deferred fixed annuities

When you place your savings into a deferred fixed annuity, you can:

  • Potentially build a bigger retirement nest egg because you get to defer taxes until you withdraw your money.
  • Convert your money into a stream of lifetime income to help cover your expenses once you retire.

A deferred fixed annuity also can help you manage your finances in retirement. A steady return lets you know how much you have available to spend, and you're able to withdraw more than just the interest.**

Before you buy, check the issuing company's credit ratings to determine its financial stability. Also, check on withdrawal penalties—otherwise known as surrender charges—to see how much you'll be charged if you take your money out earlier than expected.


See current interest rates

You can check current interest rates from multiple well-known insurance companies in just minutes through Vanguard Annuity Access™ in collaboration with Income Solutions®.

Current highest 5-year interest rate available:


(as of 04/15/2014)

Rate is subject to change without notice. May not be available in all states.

Vanguard clients with online account access can go directly to Income Solutions to see rates. (You'll need to be logged on to vanguard.com.)

All others can call 800-357-4720 to talk to a licensed specialist at Vanguard. We'd be happy to help you.


Why buy through Vanguard Annuity Access

Competitive interest rates
Enjoy interest rates that are normally available only to large institutions.
Excellent service
Get unbiased assistance from noncommissioned, licensed specialists at Vanguard. (Once you've purchased your annuity, you'll work directly with the insurance company you chose.)
Instant quotes
Avoid the wait by visiting Income Solutions online or calling one of our specialists.
Compare rates from well-known insurance companies that offer a variety of payment terms.

* Product guarantees are subject to the claims-paying ability of the issuing insurance company.

The underlying risks, financial obligations, and support functions associated with the products are the responsibility of the issuing insurance company. The issuing insurance company is responsible for its own financial condition and contractual obligations.


** Withdrawals in excess of 10% of the accumulation value of the annuity may be subject to a surrender charge. Withdrawals before age 59½ can be subject to ordinary income tax and a 10% federal penalty tax.

Vanguard Annuity Access is offered in collaboration with Hueler Investment Services, Inc., through the Income Solutions platform. Income Solutions is a registered trademark of Hueler Investment Services, Inc., and used under license. United States Patent No. 7,653,560. Vanguard Annuity Access is provided by Vanguard Marketing Corporation, d/b/a VMC Insurance Services in California.


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