Both fixed and indexed annuities protect your principal and offer tax-deferred growth. Learn the key differences to make the right choice for your retirement.
Last updated: January 2026 | Written by licensed CT insurance professionals
Fixed Annuity
Guaranteed interest rate for a set period. Simple, predictable, and safe.
Indexed Annuity
Interest linked to market index with principal protection. Growth potential without market risk.
Side-by-Side Comparison
Understanding Indexed Annuity Terms
Participation Rate
Percentage of index gain credited to your account. 80% participation means you get 80% of the index return.
Cap Rate
Maximum interest credited regardless of index performance. A 6% cap limits your gain to 6% even if the index rises 15%.
Floor
Minimum interest credited, typically 0%. Your principal is protected even when the index loses value.
Not Sure Which Annuity Is Right for You?
Get a personalized annuity comparison from a licensed Connecticut broker. We’ll help you find the best fit for your retirement goals.
Related Annuity Resources
Complete Connecticut annuities overview
Understanding annuity withdrawal penalties
Detailed fixed annuity information
Detailed indexed annuity information
Content reviewed by Antonucci, Joseph, CT Licensed Insurance Producer #2165849
Annuity comparisons are for educational purposes. Actual rates, caps, and participation rates vary by carrier and product. Consult a licensed advisor for personalized recommendations.
| Feature | ||
|---|---|---|
| Interest Rate | ||
| Return Potential | ||
| Principal Protection | ||
| Market Risk | ||
| Complexity | ||
| Fees | ||
| Best For |