Annuities

Annuities can be used for a variety of purposes and they can fit well into almost any retirement plan. No matter what’s currently in your plan or portfolio, chances are that an annuity can help you achieve your financial goals.

What is an annuity?

Annuities: You’ve heard of them, but what exactly are they? An annuity is an investment tool that could provide you with secure retirement savings. You can start receiving money from your annuity immediately or you can sock it away on a tax-deferred basis for decades before you start getting the benefits.

There are several different types of annuities. Immediate annuities are a popular choice for soon-to-be retirees, while deferred annuities are more popular with those who want to let their investment grow over time. A fixed-rate annuity offers guaranteed interest rates, tax deferrals and the option to have a guaranteed stream of income for life.[1]

Here are some more basics about annuities:

  • An annuity can be used to fund retirement plans like Traditional, Roth, SEP and SIMPLE IRAs.
  • An IRA annuity can be used for rolling over funds from an employer’s retirement plan, such as a 401(k), when changing jobs.

Benefits of an Erie Family Life annuity

Erie Family Life[2] offers you options and benefits such as:

  • No contract fees – every dollar you put in works for you and earns interest.
  • Guaranteed rates.
  • Retirement income you cannot outlive.

The annuity portfolio plans from Erie Family Life include:

  • Flexible Premium Deferred Annuity (FPDA) – The FPDA allows you to design a savings plan where you contribute toward retirement as you have funds available.
  • Single Premium Deferred Annuity (SPDA) – If you have $10,000 or more to invest, the SPDA is an excellent choice. You may choose a guaranteed period of 3, 5 or 7 years. Depending on the amount of your deposit, bonus rates are available.
  • Single Premium Immediate Annuity (SPIA) – The SPIA is ideal if you need an immediate source of income from money you’ve already saved or have on hand. Income options can be set up for a specific period of years or over the course of your lifetime.

With Erie Family Life, you can tailor a plan to meet your needs taking into consideration your circumstances, how much time until you retire and the amount you want to save. You can set your retirement income to be distributed for a specific number of years, over your lifetime or receive interest-only payments. Your ERIE agent can help you determine the best option for you and review the current interest rates below.

Erie Family Life Declared Interest Rate for Annuities

Deferred Annuities

Current interest rates, effective September 1, 2025:

  • Flexible premium annuity – 3.75%[3][4][5]
  • Single premium annuity – see chart below

First Year Interest Rate & Renewal Interest Rate for Balance of Guarantee Period

single Premium

3 year

5 year

7 year

single Premium
$10,000 Minimum

3 year

3.45%

5 year

3.75%

7 year

4.10%

Notes:

  1. New Flexible Premium Deferred Annuity Premiums are guaranteed the current rate for one year from the date of premium payment.
  2. The minimum guaranteed interest rate of 1.00% applies to new issue contracts as of April 15, 2024.

Annuity Payouts

Current interest rate, depending on length and type of contract and state of issue: 2.00 to 3.30 percent. 

Notes:

  1. Periodic rate changes do not affect life contingent payouts.
  2. Rate adjustments may affect non-life contingent payouts (interest only payments, payments for a fixed period, etc.).

For more information on retirement planning options from Erie Family Life or to schedule an appointment, contact your local ERIE agent today. You may find it helpful to have a conversation with an agent about how annuities can help you live the life that you want in retirement.[1]

  1. 1. 
    This web page is not intended as estate planning or tax advice. Please consult a qualified professional advisor.
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  2. 2. 
    ERIE® life insurance products and services are provided by Erie Family Life Insurance Company, a member of Erie Insurance Group, and are not available in New York. See individual policies for specific coverage details. Certain terms and limitations may apply. Refer to our disclaimer for additional information.
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  3. 3. 
    This product is not available in New York.
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  4. 4. 
    These rates are guaranteed on initial deposits for one year from the date of deposit, after which they are subject to change.
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  5. 5. 
    These rates payable on new deposits are subject to change at any time.
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