New York Life Addresses Two Retirement Income Trends: Flexibility and Access to More Income
New Income Annuity Expands Dividend Opportunity to Income Annuity Clients, Offering Higher Payout Potential
QLAC Offering Answers Government’s Call to Expand Deferred Income Annuity Options for Rollover Clients
“New York Life’s agents represent the market leader in income annuities*, and they have worked with hundreds of thousands of Americans as they prepare to turn their hard earned retirement savings into income. Through that work, we’ve learned that retirement is unique to each individual, but guaranteed retirement income is something they all value. With the launch of New York Life Mutual Income Annuities** and the availability of our deferred income annuities as Qualifying Longevity Annuity Contracts (QLACs), we are giving pre-retirees and retirees the guarantees they want and the ability to customize retirement income to meet their needs,” said
Mutual Income Offers Growth in Retirement Income
Mutual Income works much like a traditional income annuity, where income can begin immediately or be deferred until a future start date of the client’s choosing. As with other income annuities, a client invests a lump sum with an insurer, and receives an income stream that’s guaranteed for life. But unlike traditional income annuities, the total income amount is not capped at the guarantee. As policy owners,
“With the launch of Mutual Income,
“Dividends can also offer a means of inflation protection,”
QLAC Offers Flexibility with Retirement Income
Approximately 70% of purchasers of New York Life’s deferred income annuity are using tax qualified retirement savings they already have in IRAs or 401(k)s -- but until now, an individual’s ability to decide when to start income has been limited by Required Minimum Distribution (RMD) rules, which generally require retirees to begin withdrawing from their qualified accounts by age 70½.
“We believe the purchase pattern that we see in our non-qualified sales indicates that there will be even more interest in deferred income annuities now that the income start date is permitted beyond the age of 70½. When pre-retirees have no restrictions around the income start date, they are using the flexibility that deferred income annuities afford to create retirement income tailored to their specific needs,” added
*
**New York Life Guaranteed Mutual Income and Future Mutual Income Annuities are issued by
***Dividends are not guaranteed.
****Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/15/15. For methodology, please see http://fortune.com/fortune500/.
*****Individual independent rating agency commentary as of 8/11/15.
******New York Life Investments is a service mark used by
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