Jennifer Schell Headshot
  • Written By
    Jennifer Schell

    Jennifer Schell

    Financial Writer

    Jennifer Schell joined Annuity.org in 2022. She is a professional writer with more than three years of experience creating content for a variety of industries ranging from travel to tax accounting. She combines her strong writing skills and her passion for educating others to write engaging and informative financial content for Annuity.org.

    Read More
  • Edited By
    Savannah Hanson
    Savannah Hanson, financial editor for Annuity.org

    Savannah Hanson

    Senior Financial Editor

    Savannah Hanson is an accomplished writer, editor and content marketer. She joined Annuity.org as a financial editor in 2021 and uses her passion for educating readers on complex topics to guide visitors toward the path of financial literacy.

    Read More
  • Financially Reviewed By
    Rubina K. Hossain, CFP®
    Rubina K. Hossain

    Rubina K. Hossain, CFP®

    Certified Financial Planner™ Professional

    Certified Financial Planner Rubina K. Hossain is chair of the CFP Board's Council of Examinations and past president of the Financial Planning Association. She specializes in preparing and presenting sound holistic financial plans to ensure her clients achieve their goals.

    Read More
  • Updated: December 19, 2022
  • 3 min read time
  • This page features 2 Cited Research Articles
Fact Checked
Fact Checked

Annuity.org partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

Cite Us
How to Cite Annuity.org's Article

APA Schell, J. (2022, December 19). Annuity Statement. Annuity.org. Retrieved January 30, 2023, from https://www.annuity.org/annuities/how-they-work/statement/

MLA Schell, Jennifer. "Annuity Statement." Annuity.org, 19 Dec 2022, https://www.annuity.org/annuities/how-they-work/statement/.

Chicago Schell, Jennifer. "Annuity Statement." Annuity.org. Last modified December 19, 2022. https://www.annuity.org/annuities/how-they-work/statement/.

Why Trust Annuity.org
Why You Can Trust Annuity.org
Annuity.org has provided reliable, accurate financial information to consumers since 2013. We adhere to ethical journalism practices, including presenting honest, unbiased information that follows Associated Press style guidelines and reporting facts from reliable, attributed sources. Our objective is to deliver the most comprehensive explanation of annuities and financial literacy topics using plain, straightforward language.

Our Partnerships, Vision and Goals

We pride ourselves on partnering with professionals like those from Senior Market Sales (SMS) — a market leader with over 30 years of experience in the insurance industry — who offer personalized retirement solutions for consumers across the country. Our relationships with partners including SMS and Insuractive, the company’s consumer-facing branch, allow us to facilitate the sale of annuities and other retirement-oriented financial products to consumers who are looking to purchase safe and reliable solutions to fill gaps in their retirement income. We are compensated when we produce legitimate inquiries, and that compensation helps make Annuity.org an even stronger resource for our audience. We may also, at times, sell lead data to partners in our network in order to best connect consumers to the information they request. Readers are in no way obligated to use our partners’ services to access the free resources on Annuity.org.

Annuity.org carefully selects partners who share a common goal of educating consumers and helping them select the most appropriate product for their unique financial and lifestyle goals. Our network of advisors will never recommend products that are not right for the consumer, nor will Annuity.org. Additionally, Annuity.org operates independently of its partners and has complete editorial control over the information we publish.

Our vision is to provide users with the highest quality information possible about their financial options and empower them to make informed decisions based on their unique needs.

What Is an Annuity Statement?

An annuity statement gives the annuity owner an update of the cash value and, in the case of variable and indexed annuities, the investment value of their annuity.

Annuity statements also confirm any activity that has occurred related to the annuity, such as index values or rate cap details. When you purchase an annuity, you’ll receive these statements at regular intervals — usually once per year for fixed annuities or once per quarter for variable annuities.

How To Read an Annuity Statement

To help give you an idea of what your annuity statement might look like, consider an example:

Example of an Annuity Statement
Expand
Common Parts of an Annuity Statement
A: Identification Information
A typical annuity statement will have identification information towards the top of the page. These details include the annuity owner’s name, address and account number. The statement should also have contact information for the annuity provider.
B: Overview of Contract
The statement will have an overview of the contract terms, like the names of the annuity owner and annuitant, if not the same person. This section also contains specific details of the annuity contract, including the product type, tax qualification status and effective date.
C: Financial Information
An overview of the financial information available for the statement period will also be provided. This section briefly breaks down how the value of your annuity changed over the statement period. If you have an indexed annuity, the financial activity overview will include details on index values and rate caps.

If you own a traditional fixed annuity, there won’t be much to report in this section. The statement will tell you how much interest your annuity earned in the previous statement period and what the interest rate will be for the next period.

D: Transaction History
A statement for a variable annuity might have an additional section for transaction history. This section will tell you about any purchases or sales of mutual fund units and any dividends you may have earned from those mutual funds.
E: Surrender Value
No matter which type of annuity you have, your statement should include the surrender value of your annuity. This value represents the amount of money you would receive if you canceled the annuity contract as of the statement date.

Because annuities work by letting a lump-sum premium grow over time to be converted into a stream of income years later, the surrender value will always be less than what you would earn from receiving payments from a mature annuity in its distribution stage.

Interested in Buying an Annuity?
Learn about the different types of annuities and find out which one is right for you.
Request Your Free Quote

Annuity Statement Tax Implications

One advantage of annuities is that they allow for tax-free growth on your investments — you don’t pay taxes on the annuity until you withdraw funds or begin receiving payments. If you have a fixed annuity, there won’t be any tax implications to look out for when you review your statement.

If you have a variable annuity, it’s important to note how much of your annuity’s value is your original contribution and how much is the gains generated from the annuity’s investments. This information should be available in the financial details of your statement.

Because of the tax laws surrounding withdrawing funds from an annuity, your original contribution to fund the annuity is not taxable should you choose to withdraw it. However, any gains your variable annuity earned are taxable. Understanding the composition of your annuity’s value can help you anticipate the tax implications of withdrawing funds.

Please seek the advice of a qualified professional before making financial decisions.
Last Modified: December 19, 2022
Written By
Jennifer Schell Headshot
Jennifer Schell Financial Writer
  • National Merit Scholar
  • Bachelor’s degree in English – creative writing from UCF
  • Over three years of experience in content writing and marketing strategy
View Bio
Edited By
Savannah Hanson, financial editor for Annuity.org
Savannah Hanson Senior Financial Editor
View Bio
Financially Reviewed By
Rubina K. Hossain
Rubina K. Hossain, CFP® Certified Financial Planner™ Professional
View Bio

2 Cited Research Articles

Annuity.org writers adhere to strict sourcing guidelines and use only credible sources of information, including authoritative financial publications, academic organizations, peer-reviewed journals, highly regarded nonprofit organizations, government reports, court records and interviews with qualified experts. You can read more about our commitment to accuracy, fairness and transparency in our editorial guidelines.

  1. Lincoln Financial Group. (n.d.) Quarterly Statement. Retrieved from https://www.lfg.com/ss/Satellite?c=Page&childpagename=LFG%2FPage%2FE1DetailPage&cid=1429640773449&pagename=LFGWrapper&rendermode=preview%3Faudience_page_id
  2. The Standard. (n.d.) A Detailed Map of An Index Annuity Statement. Retrieved from https://www.standard.com/annuities/tutorial/iga-statement.pdf