New York Life and its subsidiaries remain the income annuity
leader according to an industry source.
Because income annuities produce the highest level of guaranteed income per dollar of assets, the average retiree would need to save about one-third more to replicate the power of the lifetime income annuity
Deferred income annuity
(DIA) sales fell 30 percent in the fourth quarter to $575 million.
BANKING AND CREDIT NEWS-July 19, 2016-Bankers Life launches guaranteed lifetime income annuity
M2 EQUITYBITES-July 19, 2016-Bankers Life launches guaranteed lifetime income annuity
You should suggest that the client consider "carving out" $125,000 and placing it into a QLAC IRA deferred income annuity
, which will start lifetime payments at age 85 with a guarantee of 15 years.
Now, however, some well-prepared clients have a new option in using deferred income annuities to double the otherwise available payouts late in life, when the risk of outliving savings is the greatest--by choosing a no-refund deferred income annuity
Low interest rates impacted single premium income annuity
(SPIA) sales in the second quarter.
In reality, however, this form of longevity insurance is only one type of deferred income annuity
, and many DIAs allow the client to choose to start receiving income within as little as 13 months-or as long as 45 years-after purchasing the contract.
If you can convert a portion of your assets into an income annuity
, you're essentially giving yourself a raise in retirement but still retaining the remainder of your assets for a rainy day or for your heirs or whatever you're planning on doing with your money.
Enter the latest hot product in the annuity world, the deferred income annuity
, or DIA.
Question 373 explains the basic treatment of a deferred income annuity
, and tells us that payments under the annuity contract can be deferred until some point in the future--and that no taxes are incurred until the contract owner begins to receive payments.