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Personal Pension Product Details

To download a printable PDF version of the Personal Pension Fact Sheet click here. (PDF, 110KB)

Personal Pension: A Guaranteed Lifetime Income

Previous generations relied on their employers to provide them with guaranteed lifetime income when they retired, usually based on years of service. And many people of these generations worked for one company for 20 or 30 years, so dollars added up. But let’s face it– how many people do you know who have worked for the same company since they graduated from high school or college?

Also, if you’re like many Americans today, your employer may not offer a traditional pension like the one your parents received. If you are fortunate enough to have a traditional pension, it may not be enough to meet your retirement goals. And if you are a stay–at–home spouse or self–employed, you may not have access to a company retirement plan of any kind.

So, where do you turn when looking for a source of guaranteed lifetime income? Why not to a company people have been counting on for generations?

A "Personal Pension" That Offers You Guaranteed Lifetime Income
New York Life Insurance and Annuity Corporation (NYLIAC)1 offers an innovative solution to your retirement income needs. Personal Pension is a deferred income annuity that enables you to purchase guaranteed lifetime income for the future. You can purchase Personal Pension with a one–time lump sum or through regularly scheduled payments. In time (generally after you retire), you’ll receive guaranteed income that will last for the rest of your life.

No matter what your circumstances, your Personal Pension is easily established. You choose how to pay, how much to fund beyond a minimum amount, and when to receive the money. Our role?

We guarantee that as long as you live, the income will keep coming. It’s a pension for a new generation of retirees–a generation that can take control of their retirement income.

Personal Pension– What Can It Do for You?
This deferred income annuity:

  • Provides a stream of monthly income payments and is guaranteed to last as long as you live, no matter how long that is. It’s like receiving a paycheck for life.
  • Offers a death benefit to your beneficiaries, as long as all scheduled premium payments have been paid, and total income payments received is less than the amount paid into the Personal Pension.
  • Offers an option to have the dollar amount of each income payment increase annually to help keep pace with inflation.

How It Works
You can purchase the Personal Pension at any time, up to age 70. You can start receiving your income 10 years from the date the policy is issued, beginning as early as age 55. Once you begin receiving your monthly income, those payments will continue for the rest of your life.

Inflation Protection? We’ve Got It
If you are at least 59½ at the time of your first income payment, you may elect to have your monthly income payment amount increased each year by either 3% or 5% to help keep pace with inflation. If you choose this option, the income you receive will increase after one year, and continue to increase each year for as long as you live.

Choose Your Payment Plan
You have two payment-plan options. You may pay it all up front in one single sum—or you can make regular, fixed payments on an annual or monthly basis. If you choose the latter method, you may pay into the Personal Pension for up to 30 years. Once you start receiving income payments, you cannot put any more money into your policy.

The money you contribute to your Personal Pension must be at least:

Monthly Schedule: $100 per month
Annual Schedule: $1,000 per year
Single Sum: $10,000

The total payment amount for monthly and annual plans must be at least $10,000 before income payments begin.

If you are purchasing Personal Pension with regularly scheduled payments, those payments must be the same amount each time. You cannot increase or decrease that amount for the duration of the pension.

  • If you elect to pay on a monthly basis, a fixed amount will automatically be withdrawn from your identified bank checking account each month.
  • If you elect to pay annually, we will send you a bill one month before the annual payment is due.2
  • If you have not made all your scheduled payments as selected at issue, your future income will be reduced accordingly.

Calculations– How We Keep Paying You

Single–Sum Payment Plan. When you purchase your Personal Pension using a single lump sum of cash, your future income payments will be calculated based on what you’ve paid, your age, the interest rate3 at the time we receive your payment, as well as other factors.

Scheduled Payments Plan. If you purchase your Personal Pension with scheduled annual or monthly payments, the amount of future income you receive will be based on the amounts of money deposited, your age at the time of each deposit, the interest crediting rate3 at the time we received each payment from you, as well as other factors . For either payment plan approach, we will begin paying you on the date you’ve elected to start receiving income—and that income will continue for the rest of your life.

Protection for Your Beneficiaries
Your Personal Pension guarantees you lifetime income when you retire, just like a traditional pension would. But your Personal Pension has a valuable extra. It also provides a cash benefit for your beneficiaries in the event of your premature death.

  • If you pass away before you’ve started receiving income, and you have made all scheduled payments, your beneficiaries receive a death benefit based on the amount of money you paid into the Personal Pension.4
  • If you pass away after your income payments have begun, your beneficiaries will receive the difference between the total amount you had paid into the policy and the total amount of income you had received. In other words, once your payments begin, you and your heirs are guaranteed to “get your money back.” (If you pass away after the total income payments you received equals or exceeds the amount you paid into your Personal Pension, your beneficiaries would not be entitled to any payment.)
  • If you elect to pay for your Personal Pension with annual or monthly payments, and you don’t make all your scheduled payments, then no death benefit is payable.

New York Life: The Company You Keep®
Although you may not be able to rely on a company pension the way previous generations could, there is still something you can rely on–New York Life.

After all, when you purchase a financial product meant to provide you with guaranteed income for life, you want that product to be backed by a company that will be around 30 and 40 years from now—and beyond. New York Life has already been in the business of paying lifetime income for over 100 years and our financial strength positions us well to be paying lifetime income for a very long time in the future.

Since 1845, New York Life Insurance Company, the parent company of New York Life Insurance and Annuity Corporation (NYLIAC), has been providing quality insurance products to individuals, families, and businesses. Our financial strength is affirmed by the four major independent ratings agencies, which consistently award New York Life and NYLIAC high ratings:

A++ A.M. Best
AA+ Standard & Poor’s
Aaa Moody’s
AAA Fitch

Source: Third-Party Rating Reports (as of 2/16/05)

For over 160 years, New York Life Insurance Company has conducted its business around the central values of financial strength, integrity, and humanity– and have remained committed to being a mutual company, owned solely by our policyholders. This means that, regardless of the economy, we are not focused on stockholders, because we have none. Our focus is fixed on just one objective: meeting your needs, now and far into the future. That’s how we are able to keep the promises we make to you.

Talk to your New York Life agent today and find out why New York Life is The Company You Keep®.

1 New York Life Insurance and Annuity Corporation (NYLIAC) (A Delaware Corporation) is a wholly owned subsidiary of New York Life Insurance Company.

2 If your payment exceeds the “amount billed for,” the extra money will be refunded to you and will not be applied toward the policy. If your payment is less than the “amount billed for,” the entire money will be applied to a “personal defined benefit suspense account,“ and we will write to you asking for the difference. Once we receive the difference, we will apply the whole amount of the payment toward the policy.

3The interest crediting rate is guaranteed to be at least 3%.

4 We will pay to the beneficiary(ies) a death benefit, which is an amount equal to 87.5% of the net payments, accumulated at 3% interest, less an annual fee of $50. The value will never be less than the minimum value required by the state in which the policy is issued.

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