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 Life
Settlements for Financial Professionals
What is Guaranteed Lifetime Income?
Our Guaranteed Lifetime Income
products are income annuities that provide 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.
With fewer and fewer guarantees, you want to know that your income
sources will last as long as you do.
Our Guaranteed Lifetime Income products provide that assurance. By
promising to pay you a stream of income for as long as you live�no
matter how long that is� these annuities help ensure that the fruits
of your financial efforts will continue to sustain you throughout
your retirement. Only a life insurance company can promise you
guaranteed lifetime income.
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 30 years�and there�s only about a 90%
probability that your nest egg will last that long.1 While payout
rates vary based on age, gender, interest rates, and other factors,
our Guaranteed Lifetime Income products typically offer a 5%�6%
payment 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 Guaranteed Lifetime Income
products in your retirement income portfolio.
Some of our Guaranteed Lifetime Income products offer 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 Guaranteed Lifetime Income product,
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 also invest 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 use 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 Guaranteed Lifetime Income products can have on your
retirement.
New York Life's Guaranteed Lifetime Income products are issued by
New York Life Insurance and Annuity Corporation, a wholly owned
subsidiary of New York Life Insurance Company. In New York, the
issuer is New York Life Insurance Company. Guarantee is based on the
claims paying ability of the issuer.
1 Source: New York Life Investment Management. A hypothetical
untaxed portfolio of 50% equity and 50% fixed income would last 27.5
years at an 89.5% confidence level, if withdrawals were taken at an
inflation adjusted 4% a year. The historical annual date, from 1926
trough 2005, is from Ibbotson Associates. Equity returns were
modeled using the S&P 500. Fixed income returns were modeled using
the Ibbotson Long�Term Corporate Bond Index. Inflation readings were
taken from Ibbotson inflation data. The confidence level was derived
by taking a Monte Carlo simulation of 10,000 trials with random
returns drawn monthly from the Ibbotson data. The model assumed an
annual fee of 125 basis points.
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 that include principal and
interest.
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.
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