According to the U.S. Department of Treasury, Social Security currently covers about 38%¹ of the income you'll need for retirement. That means you'll have to come up with the other 62%, either through an employer-sponsored pension program, personal savings or both. To help prepare for this future need, many people purchase annuities as a source of retirement income.

Great American Life offers several types of annuities. With single premium annuities, you make only one purchase payment. That money then grows tax-deferred until you are ready to begin receiving income payments. These annuities are especially useful if you receive an inheritance or a lump sum of money from a retirement plan.

With flexible premium annuities, you make a series of payments over time—usually as much as you wish whenever you wish, within certain limits. As a rule, the more money you put in and the sooner you begin, the more the annuity can earn for you.

Why purchase a fixed annuity?

An annuity is a method of accumulating money for retirement or other long-term needs. It features tax-deferred growth, guaranteed minimum interest rates, protection for your family that can avoid probate and the opportunity to establish a lifetime income.

How does an annuity work?

· You make a contribution (known as a premium or purchase payment);
· Interest accumulates on a tax-deferred basis;
· The annuity grows; and
· At maturity, you withdraw your funds through a distribution method that best meets your needs.

With other savings alternatives, interest earnings are taxable each year. But at the present time with an annuity, you pay no taxes on your earnings until you begin withdrawing funds…so your money grows faster. What's more, in addition to earning interest on your premium, the earnings on your premium earn interest. Plus, the money you don't pay in current taxes earns interest for you over the years.

These features work to your advantage when building a secure nest egg. And, the sooner you get started, the more prepared you'll be for those golden years!

To determine the annuity or combination of annuities that best fits your needs, and for complete details of coverage including limitations, reductions or changes, contact your Great American Life agent. He or she will be pleased to assist you. If you are in need of an agent, feel free to e-mail us.

Products not available in all states.

¹Source: March 2000 Income Supplement, Current Population Survey, U.S. Census Bureau.