New York Life Launches Its Guaranteed Future Income Annuity New Flexible Deferred Income Annuity Allows Consumers To Build Their Future Retirement Income Stream at Their Own Pace NEW YORK, N.Y., July 11, 2011 - New York Life Insurance Company today announced the launch of its Guaranteed Future Income Annuity1, a deferred income annuity which offers consumers an opportunity to create their own pension-like retirement income at a time when employer-sponsored defined benefit plans are dwindling. The flexible premium product gives Americans a way to allocate a portion of their retirement savings to a future guaranteed income stream that they cant outlive. The product allows a policyholder to make an initial premium payment of at least $10,000 and set an income start date in the future, at which time they will begin receiving guaranteed income payments for the rest of their life. Between the initial premium date and the income start date, the policyholder can continue to make premium payments in smaller increments, and can defer or accelerate their income start date as personal needs change.2 The product meets several needs: 1.For working Americans, it can it can help build a pension-like guaranteed income payout for the future. For example, a 54-year-old man without a pension can invest $10,000 per year for ten years. Starting at age 65, he will receive $9,500 per year for life. This income strategy, although not a replacement for a pension, can generate an income amount that is comparable to the 2005 average private sector pension which pays about $7,700 per year.4 2.For people nearing retirement, it can efficiently convert assets into future income. For example, a 57-year-old male, who is approaching retirement might typically move a portion of his portfolio into a five- year CD as a fixed income investment to prepare for the transition from accumulating savings to generating retirement income. In todays environment, a five-year CD may yield around 1.68%.5 Alternatively, by investing in the Guaranteed Future Income Annuity, a 57-year-old man could guarantee an 11.3% lifetime annual payout rate at age 66.6 3.For a retiree, it can increase spending power in early retirement by providing the certainty of a guaranteed income that will start at a pre-determined advanced age, protecting his or her retirement needs beyond average life expectancy. For example, a 65-year-old man who invests $100,000 (non-qualified) will receive a guaranteed $65,500 per year payment starting at age 85.7 With this longevity insurance in place, the policyholder can enjoy and spend down his savings knowing that a secure income stream will begin at age 85. With the continued decline of traditional pension plans and concerns about Social Security, many Americans are facing a retirement income gap. Like a pension, the Guaranteed Future Income Annuity ensures that retirement income will be guaranteed for life - not just a bet on future returns that may or may not work out, said Chris Blunt, executive vice president in charge of Retirement Income Security, New York Life Insurance Company. New York Life, as a mutual company, is owned by our policyholders and built around a 166-year commitment to making good on long-term promises and being there for our clients. We believe this product is a sound solution for those seeking the attributes of guaranteed income similar to the pensions that their parents once relied on. And our guarantee is backed by the highest possible ratings from all four of the major credit rating agencies. Flexibility To Meet Individual Needs The product offers the following features and benefits that allow policyholders to customize their policy to meet their individual needs: •The ability to make subsequent premium payments during the deferral period, which is the time between the initial investment and two years prior to the income start date. •The income start date can be adjusted for any reason - accelerated or deferred one time.8 Policyholders can customize their payment stream to include another annuitant9, inflation protection, and legacy options including a cash refund feature that provides beneficiaries with the difference between the premium payment(s) and any income received. •Many boomers have spent a lifetime taking care of their families, and now its their turn to focus on their future by taking control of their retirement. Theyre accumulating assets, but they dont need assets in retirement - they need income. We believe the Guaranteed Future Income Annuity can meet a fundamental need by helping boomers accumulate a guaranteed lifetime income that they cant outlive, said Matt Grove, vice president in charge of New York Lifes Guaranteed Lifetime Income business. Were excited to help people take the guesswork out of retirement income. New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States10 and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Lifes family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments11 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds. Please visit New York Lifes Web site at newyorklife for more information.
Posted on: Mon, 14 Jul 2014 10:36:51 +0000
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