Fixed vs Indexed vs Variable Annuities: What’s the Difference?

Fixed annuities generally focus on stability and predictable interest crediting.

Fixed indexed annuities typically provide principal protection while linking growth potential to market indexes subject to caps, spreads, participation rates, and limitations.

Variable annuities involve market exposure and may include additional investment risk, fees, and complexity.

Each annuity type has different tradeoffs involving growth potential, protection, liquidity, fees, and income features.

Consumers should understand these differences before making retirement planning decisions.