Our Guaranteed Lifetime Income products are income annuities that provide a 100% guarantee that your retirement income will last as long as you live, no matter how long that is and no matter how the financial markets perform.

Hopefully, you’ve had the opportunity to save money toward retirement and grow a comfortable nest egg to help ensure yourself a rich and rewarding life in retirement.

But, like many, you may be hesitant to spend down your nest egg, because you do not know for how long you’ll need that money to last. With fewer and fewer guarantees, you want to know that your income sources will last as long as you do.

Our Guaranteed Lifetime Income products provide that assurance. By promising to pay you a stream of income for as long as you live–no matter how long that is— these annuities help ensure that the fruits of your financial efforts will continue to sustain you throughout your retirement. Only a life insurance company can promise you guaranteed lifetime income.

If you are a 65–year–old male and are planning on spending down your nest egg, you could withdraw approximately 4% a year if you wanted your portfolio to last around 30 years—and there’s only about a 90% probability that your nest egg will last that long.¹ While payout rates vary based on age, gender, interest rates, and other factors, our Guaranteed Lifetime Income products typically offer a 5%–6% payment rate based on payments that include an annual 3% inflation adjustment—a payout rate that is 25%–50% higher than the 4% you would receive spending down your nest egg.² And because our payments come with a 100% guarantee to last for the rest of your life, it makes good financial sense to include Guaranteed Lifetime Income products in your retirement income portfolio.

Some of our Guaranteed Lifetime Income products offer innovative features such as inflation protection, emergency access to your money, and legacy options.³ We also have customizable solutions designed for retirees, as well as for people still in their working years.

Live as Well Tomorrow, With a Guaranteed Lifetime Income Stream

Not only can guaranteed lifetime income help provide peace of mind in retirement, it also can help you optimize your income in retirement and plan the best use of your assets, so that you can live well.

For instance, by purchasing a Guaranteed Lifetime Income product, you can help ensure that certain expenses will always be covered. You can earmark this lifetime income to cover rent, medical bills, insurance costs, trips to visit family–in short, anything that you know will be a regular expense for the rest of your life.

By knowing that guaranteed lifetime income will cover your regular expenses, no matter how long you live, you can spend other assets with confidence. You can also invest your other assets more aggressively, if you wish. And because your need for discretionary income may decrease as you grow older and are less likely to be active,⁴ you can use those assets to more fully enjoy the more active early years of retirement.

That's why whether you are already retired or are approaching retirement, you should think about the emotional and economic benefits that Guaranteed Lifetime Income products can have on your retirement.

New York Life's Guaranteed Lifetime Income products are issued by New York Life Insurance and Annuity Corporation, a wholly owned subsidiary of New York Life Insurance Company. In New York, the issuer is New York Life Insurance Company. Guarantee is based on the claims paying ability of the issuer.

¹ Source: New York Life Investment Management. A hypothetical untaxed portfolio of 50% equity and 50% fixed income would last 27.5 years at an 89.5% confidence level, if withdrawals were taken at an inflation adjusted 4% a year. The historical annual date, from 1926 trough 2005, is from Ibbotson Associates. Equity returns were modeled using the S&P 500. Fixed income returns were modeled using the Ibbotson Long–Term Corporate Bond Index. Inflation readings were taken from Ibbotson inflation data. The confidence level was derived by taking a Monte Carlo simulation of 10,000 trials with random returns drawn monthly from the Ibbotson data. The model assumed an annual fee of 125 basis points.

² The estimated payout rate above is based upon a male aged 65 and includes an inflation adjustment to the payout of 3% a year. Payout rates are based on annual payments that include principal and interest.

³ Some features are not available on tax–qualified policies, and some are not available in all jurisdictions. Certain limitations and exceptions may apply.

⁴ Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, 2002.

00326759 CV

 Rate This
Rating: 0/0 (0 votes cast)

 Be the first to Comment