What is guaranteed lifetime income?

Our Lifetime Income Annuity* is an immediate income annuity that provides 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. Without guarantees, you are probably concerned that your income sources may not last as long as you do.

Our Lifetime Income Annuity provides that assurance. By promising to pay you a stream of income for as long as you live–no matter how long that is— these fixed annuities help ensure that the fruits of your financial efforts will continue to sustain you throughout your retirement.

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 26 years, and there’s only about a 90% confidence rate that your nest egg will last that long.¹ While payout rates vary based on age, gender, interest rates, and other factors, our Lifetime Income Annuity typically offer a 7% payout 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 New York Life's Lifetime Income Annuity in your retirement income portfolio. Our Lifetime Income Annuity offers 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 Lifetime Income Annuity, 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 consider investing 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 also consider using 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 New York Life's Lifetime Income Annuity can have on your retirement.

*Issued by New York Life Insurance and Annuity Corporation, a wholly owned subsidiary of New York Life Insurance Company. Guarantee is based on the claims paying ability of the issuer.

1 Source: Internal New York Life Analysis. Systematic withdrawal plan rates, and associated portfolio duration, based on hypothetical allocation between equities and bonds; 125 basis point annual fund management expense. Based on a simulation of 1,000 scenarios each of correlated equity and bond returns using and economic scenario generator. Correlations estimated using historical monthly S&P500® Index and Lehman U.S. Aggregate Index returns over the past 20 years. Past performance is not indicative of future results. The S&P500® Index is an unmanaged index and is widely regarded as the standard for measuring Large Cap U.S. stock market performance. Equity and bond returns are assumed to be normally distributed. The model is intended to be an indicator of potential returns at various confidence levels and is not designed to be a forecast of future investment performance.

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 which include both interest and return of principal. These figures are effective as of 5/12/10. Based on a no refund life-only annuity policy purchased with $100,000. For other income plans and premiums less than $100,000, the payout rates will be lower. Payouts are subject to change and exclude state premium taxes.

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.

*In most jurisdictions, the policy form numbers are as follows: Life Only - 203-169, Primary & Secondary Joint Life - 203-170, Life with Percent of Premium Death Benefit - 203-171, Life with Cash Refund - 203-172, Life with Guaranteed Period - 203-173, Primary & Secondary Joint Life with Guaranteed Period - 203-174. State variations may apply.

**In Oregon, the form number for Life Only is 203-169-OR (add OR to the general numbers for each policy form needed).