Income annuities aren’t just a check - they can be an important part of your retirement plan. Here are seven different ways that income annuities can be used:
1. They add certainty to retirement income
Instead of relying on Required Minimum Distributions (RMDs) for income, which can be difficult to calculate and can vary over time, an income stream from an income annuity is level, guaranteed, and can satisfy RMDs for the funds in an income annuity.
2. Owners can retire sooner
A deferred income annuity could help pre-retirees retire sooner, without adding additional risk of running out of money in retirement.
3. Maximize Social Security
For people who want to defer Social Security to maximize their benefit, an income annuity is a useful tool to bridge the income gap between retirement and when Social Security benefits begin.
4. Owners can leave a legacy
With a joint life income annuity, an individual can receive lifetime income for the rest of his or her lifetime, plus the lifetime of a child or grandchild to create a multi-generational income stream.
5. Owners can complement a Variable Annuity
A standard variable annuity (without the benefit rider) could be used for potential market upside and a deferred income annuity for future guaranteed lifetime income.
6. Owners can purchase a stream of lifetime income over time
Through a laddering strategy, an individual can purchase lifetime income based on their schedules and their objectives.
7. Supplement long-term care costs
A guaranteed stream of income from an income annuity may be a way to provide for long-term care costs. This can help relive concerns about unknown events.
Speak with a financial professional today to see if any of these solutions are right for you and your retirement plan.
This material is general in nature and is being provided for informational purposes only. It was not prepared, and is not intended, to address the needs, circumstances and/or objectives of any specific individual or group of individuals. New York Life and its affiliates are not making a recommendation to purchase any specific products. For advice regarding your personal circumstances, you should consult with your own independent financial and tax advisors.
Annuity products are issued by New York Life Insurance and Annuity Corporation, a wholly owned subsidiary of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. Products are available in jurisdictions where approved. Guarantees are based on the claims-paying ability of the issuer
Annuities | Not FDIC/NCUA Insured | Not a Deposit | May Lose Value | No Bank Guarantee | Not Insured by Any Federal Government Agency