Not every conservative savings product is the same. Fixed annuities offer many of the same features that make other conservative products so popular. In addition, fixed annuities offer other unique features that may be beneficial to you.

Your financial professional can help you choose the product that best suits your needs.

What is a fixed annuity?A fixed annuity is a conservative retirement product designed to accumulate assets and provide an income stream during retirement.

To help give you a better idea of what a fixed annuity is and if it is right for you, let’s compare fixed annuities to another popular conservative savings product, Certificates of Deposit or CDs. Keep in mind that both of the options are high-quality products, therefore, the “better” choice depends on your own situation and financial goals.

Growth, income and stability

NOT A BANK OR CREDIT UNION DEPOSIT OR OBLIGATION • NOT FDIC OR NCUA INSURED

• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED

BY ANY BANK OR CREDIT UNION

1 Liquidated earnings are subject to ordinary income tax and may be subject to a surrender charge. If taken prior to age 59½, an additional 10% federal income tax may apply.

2 Guarantees are based on the claims-paying ability of the insurer.

Fixed annuities CDs

Guaranteed interest1

Yes Yes

FDIC-insured No

• Backed by the claim-paying ability of the insurer that issues the fixed annuity

Yes

• Generally backed by banks• Insured up to $250,000 by the Federal Deposit

Insurance Corporation (FDIC) or National Credit Union Administration (NCUA)

Free withdrawals

Generally, yes*

• Many allow withdrawals of a certain percentage of contract value each year, typically around 10% or accumulated interest, free of any annuity surrender charges

• Tax penalties may apply.1 • Excess withdrawals are typically subject to surrender charges

or adjustments • Surrender charges generally decline each contract year and

expire at the end of a specified number of years

Generally, no

• Generally charge a penalty if funds are withdrawn prior to maturity

• Some CDs may offer the ability to take interest

Choice of accumulation period

Yes

• Accumulation periods typically range between 1 and 10 years • Some fixed annuities do not limit the accumulation period,

which allows the contract owner the flexibility to keep the assets accumulating until needed

Yes

• May offer greater choice of accumulation periods ranging from 90 days to multiple year durations

Provide income

Yes

• Can be used for both savings and income goals• Most offer a variety of ways to receive income • May offer lifetime income options2

• Generally, no• Primarily a savings product• Some CDs may allow the systematic withdrawal of

interest and may be used as income upon maturity• Cannot guarantee income for life

Tax deferral Yes

• Earnings are tax deferred until they are withdrawn, allowing your money to take full advantage of compounding interest

• Liquidated earnings are subject to ordinary income tax and may be subject to a surrender charge

• Annuities do not provide any additional tax advantage when used to fund a qualified plan

No

• Earned interest is taxable for the current year on an annual basis

K E Y B E N E F I T S O F F I X E D A N N U I T I E S A N D C D s

This hypothetical example is intended to illustrate the advantages of tax deferral. It does not represent the performance of any particular product. Surrender charges are not included and had they been, results would be lower. Please consider your personal retirement income horizon and income tax bracket, both current and anticipated, when making your financial decision as they may have an additional impact on the results of the comparison.Please note that withdrawals from a tax-deferred annuity are subject to taxation and, if taken prior to age 59½, an additional 10% federal income tax may apply.

$0

$100,000

$200,000

$300,000

$400,000

$500,000

10 Years 20 Years 30 Years

$162

,889

$145

,280

$142

,429

$265

,330

$219

,037

$202

,859

$432

,194

$339

,180

$288

,930

• Fixed annuity (before taxes are payable)

• Fixed annuity (after taxes @ 28%)

• Certificate of Deposit (CD)

TA X - D E F E R R E D V S . C U R R E N T LY TA X A B L E

Assumptions: Tax-deferred and currently taxable comparison

Assumed initial purchase payment: $100,000

Assumed annual rate of return: 5%

Assumed tax rate: 28%

AN7231 820 CRN202207-217829

This material does not constitute a recommendation to engage in or refrain from a particular course of action. The information within has not been tailored for any individual.The information provided is not written or intended as specific tax or legal advice. MassMutual, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.Annuity products are issued by Massachusetts Mutual Life Insurance Company (MassMutual) and C.M. Life Insurance Company. C.M. Life Insurance Company, Enfield, CT 06082, is non-admitted in New York and is a subsidiary of MassMutual, Springfield, MA 01111-0001.

Massachusetts Mutual Life Insurance Company

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