It's not that people don't want to save for retirement, it's because they can't afford to.
American General Life Companies has announced its new Future Income Achiever-annuity.
In a release, the Company said that the Future Income Achiever annuity is a delayed-income annuity that can provide a guaranteed income stream for the lifespan of the client. At the time of purchase, the client selects an income start date more than 12 months and up to 40 years in the future, at which time they will automatically begin to receive fixed guaranteed payments that can continue for the rest of their life. The annuity offers three death benefit options, as well as a medical underwriting option to further remove the uncertainty from retirement planning.
Clients can select from four different annual payment increase options for their annuity. Flat dollar or percentage increases (simple or compounded) can be selected between 1-5 percent. Alternatively, clients may choose a CPI-U option to receive an inflation-indexed stream of income that is guaranteed for life. Income payments are adjusted each year on January 1st to correspond with changes in the non-seasonally adjusted, CPI-U (All Urban Consumers) Index as reported by the U.S. Department of Labor.
"We are delighted to announce the availability of our Future Income Achiever annuity," said Bruce Abrams, President, Fixed Annuities. "Like other American General products, this annuity is designed to provide options for secure, long-term financial planning, ensuring that clients don't outlive their income. We are confident that the Future Income Achiever annuity will retire the uncertainty from retirement planning and uphold the high standard that has kept our company among the leading life insurance companies these many years."
American General said that this product offering is for a single premium deferred income annuity (SPDIA) for which income payments will commence more than 12 months after the annuity contract date. The Future Income Achiever Annuity is a non-participating fixed annuity available only on an individual annuity contract form. The product may be used by non-qualified plans, IRAs and accounts under 401(a), 401(k), 403(b), 457(b) plans, including Roth accounts.
The Future Income Achiever Annuity will be issued by American General Life Insurance Company (AGL) in 49 states. This product will have no cash values or guaranteed interest rates.
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