Offering Helps Meet the Growing Need for Guaranteed Income for Millions of AARP Members
NEW YORK, NY and TEWKSBURY, MA, January 31, 2007 — AARP Financial, a subsidiary of AARP Services, Inc., and New York Life Insurance Company today announced the introduction of the AARP Lifetime Income Program for AARP members, designed to generate a more secure stream of retirement income. The AARP Lifetime Income Program offers fixed immediate annuities, issued by New York Life Insurance and Annuity Corporation, a New York Life company, that provide guaranteed income for life to AARP members between the ages of 50 and 85.
"As traditional sources of retirement income, such as pensions, become less and less available, AARP members — like all Americans in or near retirement — are increasingly concerned about how best to address their income need and safeguard their financial security," said Larry C. Renfro, President of AARP Financial. "Mindful they run the risk of outliving their assets without ongoing income, many AARP members have expressed interest in the potential of annuities to help fill their income gap."
Recent New York Life research documents the growing retirement income need. More than half (58%) of pre–retirees surveyed by New York Life thought it important at or near retirement to supplement the income they will receive from Social Security or pensions by purchasing a product like an income annuity that provides guaranteed retirement income.
"This offering is part of AARP Financial's commitment to provide members with a comprehensive suite of low cost, life–long financial and investment solutions. AARP members can rest assured that products offered through AARP Financial are thoroughly examined to assure they provide excellent value from some of America's most respected brands," said Mr. Renfro. "The new AARP Lifetime Income Program from New York Life will help AARP members effectively address one of retirement's most urgent financial needs."
"We are eager to build on the excellent relationship we have had with AARP since our selection in 1994 to offer life insurance to its members," said Robert Smith, Senior Vice President of New York Life. "The cultural fit between our two organizations is outstanding. AARP has a superior reputation of matching the needs of its members with value–added services. New York Life has a similar reputation with its policyholders and has always been committed to bringing the highest quality products and services to the marketplace."
After a successful pilot test in the second half of 2006, the AARP Lifetime Income Program is now available to most of AARP's 37 million members. New York Life will handle the AARP Lifetime Income Program from its dedicated service center in Tampa, Florida, the same facility that has provided life insurance products and service to AARP members since 1994.
These lifetime income annuities provide a stream of guaranteed income payments for life, no matter how long the annuitant lives. The annuitant decides the amount of income they wish to guarantee and purchases an annuity in the amount required to establish that stream of income. The insurer does the rest, delivering a monthly paycheck for the remainder of the annuitant's life. This guarantee is backed by the claims paying ability of New York Life and Annuity Corporation.
The AARP Lifetime Income Program sets a minimum premium of $5,000 to begin a lifetime stream of income, and sets no maximum premium for the plans. Since the single premium is locked in, each income payment an AARP member receives represents a return of premium and interest. Currently, a 65–year–old male can expect annual income payments in excess of 7 percent of premium guaranteed for life from a $100,000 Cash Refund annuity.
According to Brian Duffy, Senior Vice President of New York Life, the company will offer income annuities with product and service features designed to meet the needs of AARP members. "Our suite of annuity plans offer guaranteed monthly payments for life, the ability to access extra cash in an emergency, and premium protection features that ensure the total income an annuitant or their beneficiary receives will never be less than the initial premium amount paid," Duffy said.
Mr. Renfro said: "New York Life's triple–A rating and financial stability means we are working with one of the strongest life insurers around, a critical factor in AARP Financial's selection of a provider. Based on the success of the life insurance program, New York Life is a company AARP members can count on to deliver superior value and service."
For more information on the AARP Lifetime Income Program, and to speak with a dedicated Annuity Specialist, AARP members can call (800) 608–2188.
About AARP Financial
AARP Financial, founded in 2005, is a wholly owned subsidiary of AARP Services, Inc. Based in Tewksbury, Massachusetts, AARP Financial is dedicated to helping people prepare for a more secure financial future by offering products and services designed to meet their retirement needs. AARP Financial offers a carefully chosen array of investment products and guidance, including the AARP Funds, a group of five mutual funds, designed to meet the needs of investors at any life stage; auto and home insurance through The Hartford; credit cards through Chase; life insurance and lifetime income annuities through New York Life; and mobile home and motorcycle insurance through Foremost. Visit us at www.aarpfinancial.com for more information.
While AARP endorses the services provided by AARP Financial, AARP does not offer financial products or services itself, and it cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial is a registered investment adviser and a subsidiary of AARP.
About New York Life
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life's family of companies offers life insurance, annuities and long–term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.
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|AARP Financial And New York Life Introduce The AARP Lifetime Income Program|