How many annuities can I have? Is it a good idea to have multiple annuities?

Retirement planning often involves balancing security with flexibility. One way investors may pursue this balance is with fixed annuities, which can provide guaranteed income. Fortunately, there isn’t a limit on how many annuities you can have.

A multiple annuity strategy can be a good idea when it’s part of a long-term plan. Owning several can diversify income streams, spread carrier risk, and combine product features. But managing multiple contracts adds complexity and may increase costs.

Read on to learn more about the pros and cons of investing in multiple annuities. We’ll also show you how Gainbridge’s SteadyPace™ and FastBreak™ annuities can offer strategic diversification with no hidden fees or commissions.

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How many annuities can you have?

As with pensions, there’s no legal limit on annuity ownership. You can purchase as many different types — such as fixed, immediate, or deferred annuities — as your budget or financial plan will allow. Carriers may limit the total amount of your overall portfolio that is tied up in annuities.

Most insurance companies have minimum premiums for new contracts. For example, single premium immediate annuities (SPIAs) typically require $25,000 to $50,000 to start a contract. Deferred annuities may have higher or lower minimums depending on the insurer and annuity type.

Different surrender periods and other fees can add cost and complexity across multiple annuity contracts. Tracking renewals, payouts, and riders on several products can become a record-keeping headache.

Digital-first annuities, such as those offered by Gainbridge, aim to simplify management by removing hidden fees and providing online access. These features can reduce administrative burden compared to traditional contracts.

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Pros of having multiple annuities

Owning more than one annuity can diversify your portfolio and strengthen your retirement plan. Here are the potential advantages.

Diversification by company/type, laddering rates

Holding annuities across multiple insurers can spread carrier risk — the chance that the insurance company issuing your annuity becomes financially unable to meet its payment obligations.

Mixing different types of annuities can also diversify your investment portfolio during the growth phase and your guaranteed income during retirement. Staggering annuity contracts — similar to a CD ladder strategy — gives you the opportunity to lock in higher interest rates in a rising rate environment.

Matching features

Different types of annuities can provide different benefits. For example, Gainbridge SteadyPace™ is a multi-year guaranteed annuity (MYGA) that comes with tax deferral. You don’t pay taxes on your earnings until you withdraw your money. Gainbridge FastBreak™ taxes interest annually, but lets you withdraw a portion of your account each year without IRS early withdrawal penalties.* Using multiple annuities can address different goals—.

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Cons of having multiple annuities

Owning multiple annuities can come with the following challenges.

Multiple surrender charges

Each annuity contract has its own surrender period. If you withdraw money from an annuity before the end of its lock-up period, you’ll face a penalty. When you’re managing multiple annuities, you’re managing multiple lock-up timelines. So a withdrawal from the wrong contract at the wrong time can result in unexpected fees.

Stacking fees

Fee-heavy annuity contracts have admin charges and rider costs, which can add up fast. This can potentially reduce your retirement income. Gainbridge annuities avoid this by offering no hidden fees or commissions.

Management complexity

More annuities means more moving portfolio parts to keep tabs on. Tracking maturity dates, reviewing statements and disclosures, and forecasting payout schedules require careful organization. Without a plan, the administrative burden can outweigh the benefits of diversification.

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Why might someone choose to have multiple annuities?

To answer this, start by asking yourself: Why would I own more than one annuity? The decision depends on your financial goals and long-term retirement plan.

Here are three hypothetical scenarios where an investor might hold multiple annuities.

Conservative retiree seeking guaranteed income: 1 to 3 annuities

A conservative retiree may already have reliable income sources — like Social Security, a pension, and IRA withdrawals. For this type of investor, one fixed annuity offers predictable supplemental payments. Adding a second or third fixed annuity can help stagger income start dates, fortify guaranteed income in retirement, and spread carrier risk without overcomplicating your financial plan.

Investor wanting diversification and inflation protection: 2 to 4 annuities

Some investors want a guaranteed income stream in retirement, but need an investment strategy to hedge inflation and interest rate risk. Owning more than one annuity lets them blend different contract structures in one portfolio. For example, with Gainbridge, an investor might use a long-term MYGA for locked-in growth while adding a shorter-term annuity that typically earns more than a high-yield savings account or CD. Depending on the annuity type, when it matures, they can access the funds or choose to renew the annuity if it fits their goals.

Large estate/legacy planning client: multiple annuities

Multiple contracts can simplify estate planning. It can be less messy to assign specific beneficiaries to specific annuity contracts rather than splitting one annuity among multiple beneficiaries. For example, you can structure one annuity to provide an immediate income stream to a surviving spouse and another meant to grow assets for your children or placement in a trust.

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A checklist for multiple annuity holders

If you’re considering investing in more than one annuity, consider using the following list to help guide your decisions. Each step can help ensure contracts serve a clear purpose and fit within your financial plan. Everyone’s needs are unique so your situation may look different from this list. Always ensure your decisions align with your goals and needs.

• Identify the specific need: Why do you want to own more than one annuity? Do you want predictable growth or a tax-deferred strategy? Just like with buying a stock, there needs to be a logical reason, not just because you can.
• Check available capital: Ensure that adding another annuity won’t strain your cash reserves. Avoid tying money up in long-term contracts before you’re able to maintain an emergency fund and liquidity buffer.
• Request a side-by-side quote: Compare product features, surrender schedules, and rider costs across all annuities you’re evaluating. Ask about hidden fees and commissions before you sign an annuity contract.
• Calculate incremental guaranteed income: Determine how much additional income your annuities actually provide after fees and expenses.
• Confirm company financial strength ratings: Review insurance carrier ratings from credit agencies such as AM Best and S&P Global.
• Compare alternatives: For some investors, other options make sense. For example, if you want immediate access to all of your near- or mid-term savings, a high-yield savings account might be the better choice. Investors who seek capital appreciation alongside the potential for recurring income might consider a dividend stock portfolio.
• Consult a tax or financial advisor: It’s always prudent to check with a professional to verify the implications of adding a second annuity.
• Run withdrawal scenarios: Ask which contract has the shortest surrender period? How much of your balance can you access annually without penalty? If you needed to withdraw annuity money early, how much would it cost you taxes and penalties?

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Deciding if multiple annuities fit your retirement income plan

Owning more than one annuity can strengthen your retirement portfolio when each serves a defined role. They may help structure income, hedge against inflation, or simplify estate planning. Retirees should assess owning multiple annuities in conjunction with their other assets and income streams, such as Social Security, pensions, and IRAs.

Gainbridge makes comparison easy. Our digital-first platform gives you a side-by-side comparison of our annuities to help show you how they can fit your financial needs and goals.

Explore Gainbridge today to learn how our annuities can help you combine predictable growth with a guaranteed income stream in retirement.

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This article is intended for informational purposes only. It is not intended to provide, and should not be interpreted as, individualized investment, legal, or tax advice. For advice concerning your own situation please contact the appropriate professional. The GainbridgeⓇ digital platform provides informational and educational resources intended only for self-directed purposes. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. CDs are deposit accounts offered by banks and credit unions, insured by the FDIC or NCUA. Annuities are an insurance product offered by an insurance company and are not FDIC or NCUA insured.

* Withdrawals of taxable amounts are subject to ordinary income tax and if made before age 59½, may be subject to a 10% federal income tax penalty. Distributions of taxable amounts from a nonqualified annuity may also be subject to an additional 3.8% federal tax on net investment income. Under current law, a nonqualified annuity that is owned by an individual is generally entitled to tax deferral. IRAs and qualified plans—such as 401(k)s and 403(b)s— are already tax-deferred. Therefore, a deferred annuity should only be used to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These include lifetime income, death benefit options, and the ability to transfer among investment options without sales or withdrawal charges. FastBreak™ annuity is not a tax-deferred annuity. Because this annuity is not tax-deferred, you will not pay a 10% federal excise tax on any interest you withdraw before you reach age 59 ½. Withdrawals above the 10% free withdrawal amount are subject to a withdrawal charge and/or market value adjustment. SteadyPace™ & FastBreak™ are issued by Gainbridge Life Insurance Company, a Delaware-domiciled insurance company with its principal office in Zionsville, Indiana and is licensed and authorized to do business in 49 states (all states except New York) and the District of Columbia. Products and/or features may not be available in all states. Please visit gainbridge.com for current rates, full product disclosure and disclaimers and additional information.

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