New York Life’s Deferred Income Annuity Sales Surpass $2 Billion as More Americans Look to Pre-Fund Their Retirement Income

20 Percent of Policyholders Use Multiple Premium Payments to Build Pension-Like Income

Company’s Milestone Sales Spur Other Insurers to Introduce Similar Offerings

NEW YORK--()--New York Life announced that its deferred income annuity, Guaranteed Future Income (GFI)1, a flexible way to generate guaranteed lifetime income in the future, has exceeded $2 billion in premiums since its July 2011 introduction. Twenty percent of GFI policyholders have contributed more than one premium payment, confirming that GFI helps satisfy pre-retirees’ desire to flexibly invest in their retirements early and over time. Most notably, the product has redefined the retirement income market as ten carriers have introduced similar products since the launch of GFI.

“New York Life continues to be the leading provider of guaranteed income in the industry.2 As pre-retirees plan for retirements that may last 20, 30, or even 40 years, there is growing recognition of the value of a guaranteed, sustainable approach to income. One of the most efficient ways to do that is with a deferred income annuity. This sales milestone is a reflection of the fact that pre-retirees want guarantees and simplicity, and GFI delivers,” said David Cruz, senior managing director in charge of the company’s annuity products. “As sales continue to grow and other insurers enter this market, we expect to see an increasing proportion of pre-retirees -- of which there are more than 45 million -- seeking pension-like income, guaranteed by highly rated insurers.”

GFI allows policyholders to set an income start date in the future, at which time they will begin receiving guaranteed income payments for the rest of their lives. Between the initial premium date and the income start date, they can continue to purchase more future income by making additional premium payments, and can defer or accelerate their income start date as their personal needs change.3

Approximately 70 percent of purchasers use tax qualified money to fund GFI, which is money they already have in IRAs or 401(k)s and have set aside for retirement. By purchasing GFI, these individuals have the potential to generate higher guaranteed income payments at retirement than they could achieve elsewhere. Using GFI also reduces some market risk in policyholders’ overall portfolios during the final years of their pre-retirement, when they can’t afford to endure the consequences of a market downturn.

The core audience for GFI is pre-retirees between the ages of 55 and 65 who plan to retire in five to 10 years, although the product’s flexible design allows it to meet a variety of retirement income needs. The current payout rate for a 60 year old male who defers for 10 years is about 12%. For example, with a $100,000 premium at purchase, a 60 year old male would receive more than $12,000 a year for the rest of his life starting at age 70.4 GFI is available from New York Life career agents and select investment firms nationwide.

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.

1Issued by New York Life Insurance and Annuity Corporation (NYLIAC) a wholly-owned subsidiary of New York Life. Available in jurisdictions where approved. Guarantees are subject to contract terms, exclusions and limitations, and the claims-paying ability of NYLIAC. This contract has no cash surrender value and no withdrawals are permitted prior to the income start date. Income payments are guaranteed at least as long as the annuitant is living provided the annuitant is alive on the designated income start date. Contracts in which a Life Only payout option is selected do not provide a death benefit either prior to or after the designated income start date.

2New York Life is the market leader of guaranteed income annuities (single premium immediate annuities and deferred income annuities). Source: LIMRA, 2Q 2014

3The ability to move the income start date is not available for the Life Only option or in CT. The policyholder can accelerate the start of income payments to any date 13 months after the latest premium payment or defer income payments up to five additional years from the original income start date selected. Additional premium payments can be made up until two years before the income start date.

4Life Only option, as of 9/23/2014. Annuity payments consist of both interest and return of premium. Payout rates are subject to change and may vary depending on premium amount, age, gender, income option selected and interest rates in effect at policy issue.

5Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/16/14. For methodology, please see http://fortune.com/fortune500/.

6Individual independent rating agency commentary as of 8/13/14.

7New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.

Contacts

New York Life
Terri Wolcott, 212-576-5624
Theresa_M_Wolcott@newyorklife.com
or
Sloane & Company
Sara Sefcovic, 212-446-1886
ssefcovic@sloanepr.com

Contacts

New York Life
Terri Wolcott, 212-576-5624
Theresa_M_Wolcott@newyorklife.com
or
Sloane & Company
Sara Sefcovic, 212-446-1886
ssefcovic@sloanepr.com