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Sales of New York Life's Guaranteed Future Income Annuity Now Exceed $500 M

Sales Reveal That Pre-Retirees are Using IRAs, 401(k)s to Fund This Future Stream of Income New Insight: Interesting Trend Emerges Around Income Start Date for Qualified Vs. Non-Qualified Money

NEW YORK, N.Y., June 28, 2012 — New York Life today announced that its new Guaranteed Future Income Annuity1(GFIA), a flexible way to generate a stream of lifetime income in the future, continues to far surpass sales expectations, with premiums exceeding $500 million since its July 2011 introduction.

“The value of this product for retirement income planning is undeniable and we are pleased it has been so well-received among pre-retirees. With almost a year of sales, we are able to see some interesting trends that prove to us that the GFIA is offering a ‘pension-like’ income solution to those heading toward retirement,” said Matt Grove, vice president in charge of the company’s annuity business.

The GFIA allows policyholders to set an income start date in the future, at which time they will begin receiving guaranteed income payments for the rest of their lives. Between the initial premium date and the income start date, they can continue to purchase more future income by making additional premium payments, and can defer or accelerate their income start date as their personal needs change.2

The core audience for the GFIA is pre-retirees between the ages of 55 and 65 who plan to retire in five to 10 years. Approximately 66% of purchasers are using tax qualified money to fund the GFIA, which is money they already have in IRAs or 401(k)s and had set aside for retirement funds. By purchasing the New York Life Guaranteed Future Income Annuity, these individuals have the potential to generate higher guaranteed income payments at retirement than they could achieve elsewhere, while reducing some market risk from their overall portfolio during the final years of their pre-retirement, when they can’t afford to endure the consequences of a market downturn.

In non-qualified accounts and Roth IRAs, 66% of GFIA purchasers elect an income start date prior to age 70.5, demonstrating that the product is primarily being used to create a stream of retirement income. However, 34% of non-qualified purchasers elect an income start date between the age of 70.5 and 85, indicating a desire to defer income to a more advanced age. In traditional IRAs, Required Minimum Distribution rules require all purchasers to elect an income start date prior to the age of 70.5.

“We believe the purchase pattern that we see in our non-qualified sales indicates that there would be even more interest in GFIA if an income start date were permitted beyond the age of 70.5 for qualified savings. It is important to note that when pre-retirees have no restrictions around income start date, they are using the flexibility that this product affords them to tailor the policy to meet their specific needs,” added Mr. Grove.

The GFIA is available from New York Life career agents and select investment firms nationwide. Sales of GFIA initially began through New York Life’s field force of 12,250 agents. Today, 35% of all the company’s guaranteed income annuity sales made by agents are of GFIA. The remaining 65% of guaranteed income annuity sales made by agents are of traditional single premium immediate annuities, where income starts immediately.

New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States3 and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).4 Headquartered in New York City, New York Life's family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments5 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life's Web site at for more information.

1Issued by New York Life Insurance and Annuity Corporation (NYLIAC) a wholly-owned subsidiary of New York Life. Available in jurisdictions where approved. Guarantees are subject to contract terms, exclusions and limitations, and the claims-paying ability of NYLIAC. This contract has no cash surrender value and no withdrawals are permitted prior to the income start date. Income payments are guaranteed at least as long as the annuitant is living, provided the annuitant is alive on the designated income start date. Contracts in which a Life Only payout option is selected do not provide a death benefit either prior to or after the designated income start date.

2The ability to move the income start date is not available for the Life Only option or in CT. The policy owner can accelerate the start of income payments to any date 13 months after the latest premium payment or defer income payments up to five additional years from the original income start date selected. Additional premiums can be made up until two years before the income start date.

3Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 21, 2012. See for methodology.

4Source: Third Party Ratings Reports as of 6/22/12.

5New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.