Fresh research points to shifting priorities for retirees seeking income.
New York Life introduces clear income fixed deferred annuity with guaranteed lifetime withdrawal benefit. Income annuity leader broadens appeal by combining Income,
flexibility and security in one product.
NEW YORK, March 16, 2015—New York Life today announced the launch of its new Clear Income Fixed Annuity.1 This product is a fixed deferred annuity with a Guaranteed Lifetime Withdrawal Benefit that gives clients—primarily pre-retirees looking to lock in future income—a secure income that is guaranteed for life, and at the same time allows assets to grow while still maintaining control of their money.
Clear Income was designed based on market research that revealed that retirement-age consumers primarily want control of their money,
“Annuities that provide guaranteed lifetime income, along with flexibility and liquidity, are fast becoming an essential part of a retirement income plan. In fact, the market now exceeds $100 billion. Yet, some clients are staying on the sideline, as our latest research suggests, waiting for an annuity that provides maximum flexibility,
The market research2 examined how important certain product attributes are to retirees. Here are the top five most important attributes by percent of respondents:
- Control of money, 76 percent
- Safety of principal, 73 percent
- Keeps pace with inflation, 72 percent
- Easy access to my money, 67 percent
- Income payments cannot be outlived, 55 percent
High growth potential ranked eighth with only 36 percent indicating that this was important.
“As the leading income annuity provider in the industry, we are proud to offer a product that provides more guaranteed income than most other annuity options for meeting these self-reported retirement goals, and broadens the appeal of retirement income benefits for a wider audience,” said Mr. Cruz. “When the goal is to maximize future income in retirement while maintaining flexibility, we believe the choice is clear with our new fixed deferred annuity.”
The core audience for the New York Life Clear Income Fixed Annuity is a pre-retiree in the age range of 55-65, who plans to retire in 5-10 years and is seeking ways to efficiently generate a guaranteed income in retirement. It offers the following features:
Income—Clients purchase the product with a single premium that guarantees “pension-like” income beginning at a date of their choosing and continuing for as long as the client lives. The longer the client waits to receive income, the higher the future income will be. For example, a
Flexibility—Clients are in control of their money.This means they always have access to the cash value of their account, and they also have the freedom to start receiving income whenever they are ready.3
Security—Clients have confidence knowing that their principal is protected and growth of their money is guaranteed and not subjected to the ups and downs of the market. The product also offers a return of premium after two years4 and a guaranteed death benefit for heirs even after income payments have begun.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States5 and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).6 Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments7 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s website at www.newyorklife.com for more information.