Flexible premium annuities accept multiple contributions over time, allowing you to build your retirement savings gradually rather than committing a large sum all at once. This structure works well for people still accumulating wealth.
How flexible premium annuities work:
- Make an initial premium to open the contract
- Add additional premiums as funds become available
- Subject to minimum and maximum contribution limits
- May have a specific period during which additional premiums are accepted
Benefits of flexible premium:
- Dollar-cost averaging potential
- Build savings over time as income allows
- Adapt contributions to changing financial circumstances
- Lower barrier to entry than single premium products
Typical contribution rules:
- Initial minimum: $1,000 to $10,000
- Subsequent minimum: $50 to $500
- Maximum annual additions may apply
- Premium "window" may close after a certain period
Who benefits from flexible premium:
- Working professionals still accumulating retirement savings
- Those who receive periodic bonuses or commissions
- People who want to test an annuity before committing more
- Savers with irregular income patterns
For Central Florida residents who are still working and want to build annuity savings alongside other retirement accounts, flexible premium annuities offer the adaptability to contribute as your budget allows.
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