This year also marks the third anniversary of paying dividends on participating Mutual Income Annuities
. Income annuities
have grown to become a core retirement solution for millions of Americans.
Symetra Life Insurance Company has said that it has entered into a reinsurance agreement with Resolution Re under which the financial responsibility for all of Symetra's structured settlement annuity contracts and a smaller block of income annuities
will be transferred to Resolution Re.
Such contracts have been called immediate annuities, although they now may be labeled income annuities
or payout annuities because those labels may be more appealing to consumers.
* QLACS, which are income annuities
that start on or before age 85 to protect against running out of money if a participant lives longer than he expected;
In 2016, fixed immediate income annuities
grew 1 percent to $9.2 billion.
These plans can now purchase deferred income annuities
where an annuitized payout can start as late as age 85.
The different types of deferred annuities and income annuities
are also described.
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.
Indexed annuities, single-premium immediate annuities (SPIAs) and deferred income annuities
(DIAs) are the strongest contenders in the fixed market, according to IRI.
The emergence of deferred income annuities
over the past few years is a perfect example.
The Department of the Treasury and the Internal Revenue Service (IRS) have issued guidance designed to expand the use of income annuities
in 401(k) plans.