Offered through The Northwestern Mutual Life Insurance Company

Annuities can be powerful retirement vehicles because they can accumulate value on a tax-deferred basis or can be a source of lifetime income for retirement, or the realization of other financial goals.

Annuities provide a regular stream of income, typically upon retirement. They can be shaped
and sized according to your needs and give you the option to begin receiving the income at a future date or immediately. You can fund your annuity gradually or all at once. Depending on the type of annuity, its value can be tied to a fixed interest rate or the performance of underlying investment funds.

You can arrange:

  • for the annuity to provide an income for a specific period of time or an entire lifetime.
  • for the income you receive paid from a fixed income plan or variable income plan that is tied to the performance of underlying investment funds.
  • to have the annuity provide income to you alone, to you and a significant other, to continue to whichever of you lives the longest, and even to another beneficiary beyond the lifetime of you and any significant other.

There are different types of annuities.

Deferred Annuity
A deferred annuity is a long-term investment designed to help you grow your assets and provide a steady income stream for your retirement. Basically, that means you invest your money now and hold off on using it until you're ready to retire. You get to invest on a tax-deferred basis, so you don't pay taxes on any accumulated earnings until you withdraw your money. And then, only your earnings are taxed as ordinary income.

Immediate Annuity
The primary benefits of an immediate annuity are the consistent and stable income it provides. You know that a check for a specific amount will be received on a regular basis and that the income will continue for as long as you have requested. An immediate annuity is sometimes referred to as an income annuity.

Both deferred and immediate annuities offer fixed or variable income options.

Northwestern Mutual Products at a Glance

Your initial purchase payment and optional subsequent payments grow tax-deferred over time. A variety of income options are available, depending on the contract of your choice.

Select™ Variable Annuity
The Select™ Variable Annuity offers a variety of investment choices, sound management and convenient customer services to help you achieve your financial goals.(1)(2)
Select Fixed Annuity* 
The Select Fixed Annuity is a Single Premium Retirement Annuity and provides a guarantee of principal and interest. When you are ready to receive income, a variety of options are available. Interest rates are guaranteed for one or three years.

Provides an immediate stream of income for a period of time from a single, lump sum premium payment.

Select Immediate Annuity 
The Select Immediate Annuity is a Single Premium Immediate Annuity that provides a variety of income options for situations where you would want to turn a single sum of money into a stream of income.
Variable Income Plan 
The Variable Income Plan is an income option of the Select Variable Annuity which offers a variety of investment choices and sound management.(1)(2)

Typical Costs

In choosing an annuity product that will best serve your needs, it is also important to take the costs into consideration. 

Fixed Annuities: Typically, there are no additional charges or fees because the expenses have been calculated into the interest rate the insurance company pays.
Variable Annuities: As is the case with all investment products, expenses and fees apply and vary from insurance company to insurance company. The most common are mortality and expense fees, portfolio fees, and contract fees.
Withdrawal charges typically apply in the early years of a deferred fixed or variable contract and are deducted from amounts you take out. The cost for any available optional benefits and riders included with the annuity would be added, in addition to the fees previously mentioned.


You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a contract and fund prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.

Additional Information:

  • Daily Unit Values - Deferred Annuities
  • Daily Unit Values - Income Plans
  • Performance History
  • Fund Information

*The Select Fixed Annuity was formerly known as The Single Premium Retirement Annuity (Revised 10/05).

(1) All securities are offered through Northwestern Mutual Investment Services LLC, (NMIS), Suite 300, 611 E. Wisconsin Avenue, Milwaukee, WI 53202, 1-866-664-7737. Member FINRA and SIPC. NMIS is wholly owned by Northwestern Mutual.

(2) The investment return and principal value of a variable fund will fluctuate so that the accumulation value at maturity or surrender may be more or less than the original cost.

Withdrawals for deferred annuities may be subject to ordinary income tax and may be subject to a 10% IRS early withdrawal penalty if taken before age 59 1/2.

Lifetime income is assured only if the insurance company backing your payment plan is sound. Northwestern Mutual has consistently received the highest ratings for financial strength. Ratings companies include A.M. Best Company (A++), April 2012, Moody's Investors Service (Aaa), October 2011, Standard & Poor's® (AA+), August 2011 and Fitch Ratings (AAA), August 2011. Third-party ratings are an indication of a company's relative financial strength, but are no reflection upon the performance or stability of amounts invested in a company's variable (non-fixed) funds.

The information contained on this Web site is for educational purposes and is not intended to be used as a basis for legal or tax advice. In specific cases, the parties involved must always seek out and rely upon the counsel of their own attorneys.

NMFR-ANN-001 (0408)