A deferred income annuity provides you with a worry-free stream of income, which starts at a later date and lasts for life. The income you accumulate, by paying an affordable monthly premium, is often used to supplement Social Security and other retirement savings.
Deferred income annuities let you create a pension-like income stream that you can depend on in the future. These are particularly valuable in retirement because of the steady payouts, which can help people maintain their lifestyle after they stop working.
The longer you defer your payouts, the more guaranteed income you generate down the road for when you’re ready to enjoy retirement.
The non-dividend-eligible version offers a higher initial guaranteed income amount.
The dividend-eligible version offers guaranteed income along with the opportunity for more income through dividends. Dividends are not guaranteed, but these policies have the potential to provide more total income over time than non-dividend-eligible deferred income annuities.
In a deferred annuity, earnings accumulate on a tax-deferred basis, so you don’t pay any taxes on the interest earnings until you withdraw them from the annuity.4
When a deferred annuity is annuitized, a portion of it is considered a return of your initial premium, and is not taxable, but another portion is considered the "gain," which is taxable. This type of treatment often allows individuals to spread out their taxable gain over multiple years. The ratio changes over time, and a bigger portion of the income becomes taxable as the portion of your initial investment diminishes.
1 All guarantees are backed by the claims-paying ability of NYLIAC. Products available in approved jurisdictions.
2 Taxes and other restrictions may apply.
3 This contract is irrevocable, it 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 that 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 start date. The deferred income annuity dividend-paying version is not available in New York.
4 Withdrawals may be subject to regular income tax, and if made prior to age 59 ½, may be subject to a 10% IRS penalty. In addition, surrender charges may apply.
All guarantees are backed by the claims-paying ability of the issuer. The New York Life Clear Income Fixed Annuity is issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Company, 51 Madison Avenue, New York, NY 10010. All guarantees are dependent on the claims-paying ability of NYLIAC. Available in jurisdictions where approved; not available in New York. Policy form numbers are ICC14-P010 (book value) and ICC14-P120 (MVA). State variations may apply.
Future Mutual Income Annuity is issued by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.; All guarantees are dependent on the claims-paying ability of the issuer. Available in jurisdictions where approved. The policy form number is 215-P200. State variations may apply. SMRU1893283