How Annuities Can Strengthen Your Retirement Plan During Financial Wellness Month
January 20, 2026
January is Financial Wellness Month — a time to reflect on your financial habits and reset your goals for the year ahead. As Intuit notes, financial wellness isn’t about wealth; it’s about building habits that give you more control and clarity over time. Whether you're reviewing your budget, boosting your emergency savings, or reassessing your long-term plans, this month is an opportunity to take intentional steps toward greater financial stability.
One of the most crucial aspects of long-term wellness is a strong retirement strategy. Adding a nonqualified annuity can bring more predictability to that plan. Whether you’re approaching retirement or just thinking ahead, financial vehicles like annuities can help you feel more confident about what’s next.
What Is a Nonqualified Annuity and How Does It Work?
A nonqualified annuity is a type of annuity contract funded with after-tax dollars. Unlike qualified plans such as IRAs or 401(k) plans, there are no IRS contribution limits, allowing for more flexibility in how much you save.
The funds grow tax-deferred, meaning you won’t pay taxes until you begin withdrawing. When you do, earnings are taxed as ordinary income, but your initial principal is returned tax-free. That makes a nonqualified deferred annuity especially useful for those looking to manage when and how they receive income. It can help bridge income gaps before required minimum distributions (RMDs) kick in or provide a steady stream during retirement years.
Why Consider a Flexible Premium Deferred Annuity for Retirement?
A flexible premium deferred annuity (FPDA) gives you the freedom to contribute over time, rather than committing to a single lump sum. This approach supports long-term planning by accommodating varying income levels and changing financial priorities.
Many people are drawn to the stability that FPDAs provide. You can build your savings consistently and, later, convert that value into lifetime income — reducing the worry of outliving your resources. At 1891 Financial Life, our annuity portfolio includes FPDA options designed with your future in mind.
How Do Annuities Improve Retirement Security?
For those worried about market swings or whether their savings will last, annuities bring an added layer of reliability. One of their biggest advantages is the ability to deliver lifetime income — a consistent stream you can count on, month after month.
Consider two retirees with similar savings. One relies on a mix of investments and adjusts withdrawals based on market performance. The other uses an income option provided through an FPDA or a multi-year guaranteed annuity (MYGA) to supplement Social Security. With either option, income arrives on a predictable schedule, making it easier to cover regular expenses without second-guessing.
An FPDA lets you build savings gradually and turn them into income when the timing is right. MYGAs, on the other hand, offer a fixed interest rate for a set term. Both options help reduce financial uncertainty in retirement, giving you more control and confidence in the years ahead.
Make Financial Wellness Month Count With Smart Retirement Planning
Your retirement strategy should reflect your goals, values, and risk tolerance. Nonqualified annuities, including FPDAs and MYGAs, are not a one-size-fits-all solution, but they can play a vital role in creating a more stable and fulfilling future.
Financial Wellness Month is an ideal time to take stock of your plans. Whether you're preparing for retirement in five years or just beginning to map out your future, now is the time to ensure your strategies support a life of independence and peace of mind.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
FAQ About Annuities
How do annuities support retirement planning and financial wellness?
Annuities add security and structure to retirement plans by offering tax-deferred growth, flexible premium options, and the potential for lifetime income. Annuities reduce the risk of outliving your savings by complementing other income sources, such as Social Security or pensions.
What’s the difference between a qualified and a nonqualified annuity?
A qualified annuity is funded with pre-tax dollars through retirement accounts, such as IRAs, while a nonqualified annuity is funded with after-tax money and has no contribution limits. Withdrawals from nonqualified annuities are taxed on the earnings portion only.
Are multi-year guaranteed annuities (MYGAs) a good option right now?
MYGAs are ideal for individuals seeking predictability and safety. They lock in an interest rate for a specific term, which can help balance out riskier assets or serve as a stable income bridge during early retirement.
About 1891 Financial Life
Our culture is about looking out for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We take pride in giving back to the communities we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits, along with social, educational, and volunteer programs designed to respond to community needs. Our commitment to excellence has been recognized by Forbes, naming 1891 Financial Life among “The World’s Best Life Insurance Companies” in 2023 — and for the second time, as one of “America’s Best Life Insurance Companies,” ranking #1 in Term Life Insurance for 2026.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs, no matter what stage of life you’re in.