What Does This Article Cover? How can I guarantee a lifetime income for my spouse and me? Is there an annuity that allows cash withdrawals? Is there an annuity that helps offset the effects of inflation?

When it comes to retirement planning, one of the tools growing in popularity is an immediate annuity. Immediate annuities can provide retirees with an income they can't outlive, a real security blanket as people live longer and longer. New York Life's Lifetime Income Annuity, issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation) also provides solutions to other retirement issues people face as they move from accumulating retirement savings to devising a retirement income strategy.

As Baby Boomers approach retirement, one thing is apparent: Their retirement will be far more complex than their parents' retirements were. Not only must they be concerned about accumulating enough money to retire comfortably, but they must also think about how to make that money last a longer time, perhaps as long as 30–40 years. However, according to the 2003 Retirement Confidence Survey issued by the Employee Benefits Research Institute, 41 percent of respondents said they are not familiar with the term "retirement income planning." Indeed, most people seem confused about the difference between accumulating retirement savings and creating an income plan. When asked about their primary source of retirement income, 63 percent responded with asset accumulation vehicles such as 401(k) plans, company pensions, and mutual funds, rather than products like annuities that provide monthly distributions.

Once Boomers realize they need to make the transition from savings accumulation to savings disbursement, and devise a retirement income strategy for the money they have been faithfully socking away, a number of key issues arise:

• First and foremost they want a plan that will enable them to maximize the monthly income they receive from their savings and enjoy retirement for as long as they live.
• They want to protect themselves against the cost of inflation.
• They want to be sure they will not lose all their money if they die too soon. (If they have heirs, however, they might want a plan that balances their income needs with one that will also enable them to pass on their assets should they die prematurely.)
• And, in case of emergencies, people also need to have ready access to their money without being subject to penalties and fees.

With this annuity, New York Life continues to create innovative financial products that meet the changing needs of its policyowners and prospects.

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