AIG Life & Retirement Introduces 5-Year Index Annuity For New York
AIG Life & Retirement, a leading provider of annuities, today announced the launch of Power Index 5 NY, a 5-year index annuity developed exclusively for New York and the latest addition to The Power Series of Index Annuities.
Power Index 5 NY is issued by The United States Life Insurance Company in the City of New York (US Life), a member company of American International Group, Inc.
With inflation rising at its fastest pace in 40 years, consumers may be looking for a retirement product that guarantees growth to help offset increasing costs. Power Index 5 NY combines tax-deferred growth potential and protection guarantees backed by the claims-paying ability of US Life.
The new index annuity is guaranteed to increase in value—either by capturing the upside potential of three leading equity market indices or by locking in a fixed growth rate even when the market is flat or down. Consumers also have more flexibility because withdrawal fees end after five years, allowing them to access their money should their needs or situation change.
“We are committed to providing New York residents with more options for tailoring retirement solutions to meet their needs,” said Bryan Pinsky, President of Individual Retirement at AIG Life & Retirement. “In 2020, we introduced the first index annuity for New York with a guaranteed lifetime income benefit. Now we’re proud to continue that legacy with an index annuity that blends enhanced flexibility, guaranteed growth and upside potential to help New Yorkers build more assets for retirement.”
The new 5-year index annuity gives consumers the opportunity to grow their assets with interest earned based on the performance of three premier equity indices—the S&P 500®, Russell 2000® and MSCI EAFE.1 Power Index 5 NY does not directly invest in these indices, there is no market risk to principal, and the account balance will never decline due to market fluctuations.
Power Index 5 NY has been designed to provide growth and protect principal. The product includes a Minimum Accumulation Value (MAV) that is separate from the account balance and increases by 1% per year, regardless of index performance. Should index returns remain flat or down, Power Index 5 NY locks in the guaranteed growth from the MAV after 5 years and then every year thereafter. If interest earned through the performance of the equity market indices is greater than the MAV, consumers will benefit from this upside potential.
“Index annuities like Power Index 5 NY can protect assets from interest rate risk and market fluctuations, while providing the opportunity to generate more income,” said Pinsky. “We are working with many financial professionals who are using index annuities to look beyond traditional fixed income assets to help generate growth and income for their clients.”
This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.
Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Contract value can be reduced for withdrawals and, if applicable, withdrawal charges. Index annuities may not be appropriate for all individuals.
There is no guarantee that the growth potential of an index annuity will keep pace with inflation or rising costs in retirement. In addition, no interest will be credited in flat or down markets.
Withdrawals may be subject to federal and/or state income taxes. An additional 10% federal tax may apply if individuals make withdrawals or surrender their annuity before age 59½. Individuals should consult their tax advisor regarding their specific situation. Withdrawals may also be subject to a withdrawal charge that begins at 8% and declines to 0% after five years. State variations apply. See the Owner Acknowledgment and Disclosure Statement for more information.
1 Interest earned in Power Index 5 NY is calculated using index performance over a specific term subject to an index rate cap. The index rate cap is the maximum percentage of index performance that can be credited as interest for an index term. The S&P 500, Russell 2000® and MSCI EAFE are price return indices and do not include the impact of dividends. No index interest is earned in flat or down markets.