New Tool Creates a Seamless Transition from Social Security Optimization to Annuity Illustration and Proposal

BOSTON--(BUSINESS WIRE)--LifeYield, the fintech leader in tax-efficient, multi-account portfolio management, announces today the release of its Annuity Income Layer for annuity manufacturers and distributors to ride the crest of retirements and investors’ thirst for guaranteed income.

The Annuity Income Layer, an enhancement to LifeYield’s widely used Social Security+ benefits optimization tool, makes it simple and smooth for financial advisors to illustrate a manufacturer's annuity products with minimal disruption and data collection.

Annuity sales enjoyed record growth in the past two years,* driven in part by the waves of individuals approaching retirement and seeking the security of:

• Protected lifetime income that complements Social Security benefits.
• An income source to bridge a gap while they delay Social Security to maximize their benefits.
• A hedge against the risks of longevity, inflation and market instability in retirement.

“Tens of thousands of financial professionals use LifeYield technology to demonstrate the value in dollars and cents of various Social Security filing strategies,” said Mark Hoffman, chairman, chief executive officer and co-founder of LifeYield. “Next, conversations frequently and quickly turn to a client’s income needs and retirement savings.

“With the Annuity Income Layer, manufacturers and distributors can empower financial professionals to pivot to creating annuity illustrations and proposals with the data they’ve already collected,” Hoffman said. “They can also show how an annuity fits into a retirement income plan with Social Security and other savings.”

About LifeYield Social Security+ 
Advisors use Social Security+ to ask clients when they plan to file for retirement benefits. Then, they model various filing options to see how delaying or changing clients’ plans might increase their monthly, annual and lifetime benefits.

From 2020 through 2022, advisors used Social Security+ to uncover an average increase in benefits of $175,731. That number represents the average difference between lifetime benefits based on clients’ original plans and what they could collect following the optimal strategy.

In 2023, the average increase in benefits identified per household by users of Social Security+ jumped 32% to $231,963.

“The large (8.7%) cost-of-living adjustment (COLA) in 2023 probably contributed to that increase but doesn’t explain it completely,” said Jeff Quigley, LifeYield senior vice president of enterprise sales and relationships. “It may also reflect the increasing wealth of people approaching retirement who are consulting with financial advisors on Social Security filing strategy and retirement income needs.”

Note: Individual client results vary and depend on the salary history of household members, life expectancy and other factors.

*LIMRA: U.S. individual annuity sales to exceed $300 billion in 2024 and 2025. (n.d.). https://www.limra.com/en/newsroom/industry-trends/2023/limra-u.s.-individual-annuity-sales-to-exceed-$300-billion-in-2024-and-2025/

About LifeYield 
LifeYield improves investor outcomes by minimizing investment taxes and maximizing retirement income through multi-account portfolio management. Major financial services firms like Morgan Stanley, Merrill, Ameriprise, SEI, Orion, Allianz Life, New York Life, JP Morgan, Franklin Templeton, and Envestnet partner with LifeYield. They use LifeYield APIs inside their proprietary platforms to automate ongoing asset location, tax harvesting, transitions, withdrawals, multi-account rebalancing, and retirement income optimization. LifeYield’s approach increases advisor productivity and improves financial results for investors, advisors, and firms by up to one-third. For more information, visit lifeyield.com.