Independent Review of the Symetra Single Premium Fixed Deferred Annuity

What Will We Cover in this Annuity Review?

In this annuity review of the Symetra Single Premium Fixed Deferred Annuity, we will discuss the following information:

  • Product type
  • Fees
  • Current rates
  • Realistic long-term return expectations
  • How it is used
  • How it is most poorly used

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.

If you’ve been considering the purchase of an annuity because you want to ensure that you won’t run out of income in the future – especially if you live a nice, long life – then purchasing the Symetra Single Premium Fixed Deferred Annuity could be a way for you to achieve that goal.

That is because this annuity allows you to avoid the ups and downs of the market, while at the same time providing you with a guaranteed, fixed interest rate for a set period of time. Also, when the time comes to convert the annuity over into an income stream, that income can last throughout the remainder of your lifetime, regardless of how long that may be.

However, before you go out an purchase the Single Premium Fixed Deferred Annuity from Symetra – or any annuity, for that matter – it is essential that you first get a good understanding of the benefits it can provide, as well as any of the possible drawbacks. This is because even a fixed annuity can be quite difficult, and costly (due to surrender charges) to get out of once you are in.

Throughout the past decade or so, fixed annuities have become much more popular with people who are retired, as well as those who are approaching that time in their lives, as they can help to alleviate the concern about running out of money in retirement.

But, due in large part to this increased demand, many insurance carriers have been introducing new products – and unfortunately, this can make a product that is already somewhat confusing even more so. This can be the case for well-informed consumers, as well as many insurance and financial advisors!

With that in mind, unless the advisor that you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.

That’s where the Annuity Gator can come in!

Annuity and Retirement Income Planning Information You Can Trust

If you have not been to our website before, then please allow us to personally welcome you here to Annuity Gator. We make up a team of experienced annuity professionals who are focused on offering in-depth, and unbiased, annuity reviews.

We have been doing this for quite some time now, and far longer than our competitors. So because of this, over time we have come to be known as a highly trusted source of annuity information online.

While there are a number of very good websites on the Internet that are focused on offering their annuity products, there are some that will attempt to lure you in with some pretty bold claims like:

  • Lowest Fees
  • Highest income payouts
  • Guaranteed lifetime income
  • Top-rated companies

Sound familiar?

However, even though these claims might sound highly enticing, this makes it all the more important to know whether or not these claims are true. This is where our website can help. In fact, if you have come here in search of more in-depth details on the Symetra Single Premium Fixed Deferred Annuity, then you are definitely in the right place.

In fact, may we be so bold as to say that our website is the only place where you can find out all of the information – the good, the bad, and yes, even the ugly. Knowing the whole picture, though, can help you in determining whether this product will be right for you.

Just to be clear here, we want to state for the record that there can be a long list of benefits that can be attained when you purchase an annuity – provided that the product fits in with your overall financial needs and goals.

That being said, if you are ready to start the review, let’s go ahead and dive in!

Symetra Single Premium Fixed Deferred Annuity at a Glance

Product NameSingle Premium Fixed Deferred Annuity
IssuerSymetra
Type of ProductFixed Deferred Annuity
S&P RatingA
Phone Number(800) 796-3872
Websitehttps://www.symetra.com/

Opening Thoughts on the Symetra Single Premium Fixed Deferred Annuity

Symetra has been in the insurance and wealth protection business for more than 60 years. The company today holds in excess of $42 billion in assets and is highly rated by the insurer rating agencies for its strong financial footing, and its timely payment of policyholder claims.

The company serves over 2 million customers through a nationwide network of financial institutions, broker-dealers, independent agents, advisors, and benefits consultants. In addition to being a pioneer in the area of medical stop-loss insurance, Symetra is also a leader in the fixed deferred annuity arena, particularly through the banking channel.

With so much volatility and unpredictability in the stock market over the past several years, the demand for fixed annuities has grown quite a bit, particularly as a way for retirees (and those who are preparing for retirement in the near future) to keep assets safe, and to ensure that they have a stable and reliable income going forward.

Unfortunately, though, due to the historically low-interest rate environment that we’ve been stuck in for nearly a decade now, the return that has been offered by fixed annuities has been very low.

In fact, in many instances, the returns that are obtained on fixed annuities have not even been enough to outpace the inflation rate over time. Because of these low rates, your future purchasing power could be affected – especially if you plan to use the income from a fixed annuity as a primary source of your retirement income down the road.

Before we get into the gritty details, here are some necessary legal disclosures…

This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Symetra has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.

For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.

How Symetra Describes the Single Premium Fixed Deferred Annuity Product

According to Symetra, the Single Premium Fixed Deferred Annuity allows you to choose an interest rate guarantee of three, five, or seven years, depending on the product option that you choose.

For example, with the Symetra Custom 7, rates can be guaranteed for 3, 5, or 7 years, whereas with the Symetra Custom 5 fixed deferred annuity, interest rate guarantee periods are for either 3 or 5 years. Both of these options will allow minimum subsequent purchase payments of $1,000 during the first 12 months that you own the annuity.

As with other annuity products, the interest on your money inside of the Single Premium Fixed Deferred Annuity is able to grow on a tax-deferred basis. This means that there is no tax due on the gain until the time of withdrawal – which can essentially allow the funds to compound exponentially.

The fixed deferred annuity options from Symetra also offer some additional “bells and whistles,” such as a nursing home and a hospitalization waiver whereby surrender charges may be waived if you withdraw funds from the annuity and meet certain guidelines.

For more information on the Symetra Single Premium Fixed Deferred Annuity – both the Custom 7 and the Custom 5 options, you can take a look at the product fact sheet HERE.

How a Financial Advisor May “Pitch” the Symetra Single Premium Fixed Deferred Annuity Product

As you approach retirement, protection of your hard-earned principal will typically become more and more important – as well the assurance that you will have enough income in the future, regardless of how long you may need it.

Given that, it is likely that if you are being presented this annuity by an insurance or financial advisor, he or she will key in on these guarantees. Yet, while having these assurances can help you to sleep a bit better at night, the reality is that the interest rates today (and for the past decade or so) that are offered on fixed annuity products would have you hard pressed to meet, much less beat, inflation.

This, in turn, could put you in a bind in the future when it comes to ensuring that your income is keeping up with the rising cost of goods and services that you need to purchase. In fact, the guaranteed minimum interest rate of 1.0% on the Custom 7, and only .50% on the Custom 5 aren’t even as much as you could get by putting your money in a basic savings or money market account. (And if you went that route, your funds would be a lot more liquid, too).

Are There Any Fees on the Symetra Single Premium Fixed Deferred Annuity?

Along those lines of liquidity, you will also have to watch out for surrender charges if you withdraw more than 10% of your money from the Custom 7 or Custom 5 annuity during the time of the surrender period.

Each of these products has a surrender period as follows:

Custom 7 Surrender Charge Schedule

Contract Year12345678+
Charge %88776540

Custom 5 Surrender Charge Schedule

Contract Year123456+
Charge %777650

Independent Review of the Symetra Single Premium Fixed Deferred Annuity

The Annuity Gator’s End Take on the Symetra Single Premium Fixed Deferred Annuity

Where it works best:

This particular annuity will usually work the best for those who are looking for:

  • Guaranteed lifetime income
  • Safety of principal
  • Interest rate guarantee – at least for a certain period of time

Where it works the worst:

This annuity may not be an ideal fit if you:                                                 

  • Want access to most or all of your funds within the first several years (during the surrender charge period)
  • Are seeking a high rate of return on your money
  • Do not anticipate using the annuity for lifetime income

In order to know how to really compare the best annuity options for you, click here so that you can download our free annuity report.

In Summary

There are many criteria that should be considered before you commit long-term to a product like an annuity. In the case of the Symetra Single Premium Fixed Deferred Annuity, these include how long you want your rate guaranteed, any fees that could be charged (such as for a withdrawal), and how you will take your future income.

If you are still considering the purchase of this annuity, you can be assured that your principal will be safe and that you will be able to count on a guaranteed income stream in the future. However, even so, the Symetra Single Premium Fixed Deferred Annuity could still fall somewhat short, and quite frankly, there could very well be a better option out there for you.

The only way to truly know whether this annuity will perform well for you is to have it tested. We can do this for you and can provide you with the results – at no charge or obligation. If you are interested in taking a look at the potential performance of the Symetra Single Premium Fixed Deferred Annuity, based on your specific criteria, then please contact us here through our secure online form.

Do You Have Any Additional Questions Regarding the Symetra Single Premium Deferred Fixed Deferred Annuity? Did You Happen to Notice Any Mistakes?

While we understand that this review went a bit on the long side, our feeling is that we would much rather provide you with “too much” detail than not enough. That’s because knowing all that there is to know is really the only way to make a well-informed purchasing decision.

So, if you did find this annuity review to be beneficial, then please feel free to forward it on and share it with anyone else who you feel would also find it advantageous. Conversely, if this review caused you to be more confused about this (or any) annuity, please let us know that, as well.

Any other annuities you’d like to have us review?

No problem!

There are many annuities that are available on the market today – so if there is one (or more) that you did not find in our annuity review database, and you want to know more about it, then just simply let us know and our team of annuity “geeks” will get right on it.

Best,

The Annuity Gator

Independent Review of the Symetra Single Premium Fixed Deferred Annuity

 

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