In an Immediate Annuity you are not able to withdraw from it at all. It pays you a set yearly income. Although sometimes there can be surrender features that give you a portion of your funds back.
A Deferred Annuity usually allows for 10% surrender charge free withdrawals during the surrender period.
Some Annuities allow 5% or 20% withdrawals during the surrender period. Others allow for just the earned interest to be withdrawn. But the industry norm is 10%.
After the Surrender Period is over you are usually able to withdraw however much you want to.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Annuities have two phases. In the accumulation phase most annuities can be surrendered at any time. There are built in surrender charges that decline the longer the annuity is in force. If the annuity is actually paying a life time income it cannot be surrendered in most cases.
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In an Immediate Annuity you are not able to withdraw from it at all. It pays you a set yearly income. Although sometimes there can be surrender features that give you a portion of your funds back.
A Deferred Annuity usually allows for 10% surrender charge free withdrawals during the surrender period.
Some Annuities allow 5% or 20% withdrawals during the surrender period. Others allow for just the earned interest to be withdrawn. But the industry norm is 10%.
After the Surrender Period is over you are usually able to withdraw however much you want to.