Lifetime Income Choice offers consumers the opportunity to receive more income earlier in retirement
NEW YORK, March 22, 2021 — AIG Life & Retirement, a division of American International Group, Inc. (NYSE: AIG) and a leading provider of annuities, today announced a new protected lifetime income benefit for The Power Series of Index Annuities.
Available exclusively through independent marketing organizations (IMOs), the new Lifetime Income Choice benefit guarantees income growth and creates added levels of choice and flexibility, including the opportunity to receive more income earlier in retirement.
Lifetime Income Choice offers two options—Max Income and Level Income—to help consumers tailor their income strategy to their individual lifestyle. The Max Income option maximizes income during the early, more active years of retirement, when spending tends to be highest, while Level Income provides a consistent and steady income for life. For enhanced protection in changing markets, both options guarantee income growth every year prior to activating their lifetime income benefit.
“A key part of retirement planning is working with a financial professional to discuss what you want your future to look like and the income you’ll need to make that vision possible,” said Eric Taylor, Senior Vice President, Distribution, Independent Annuities at AIG. “Everyone’s retirement story is different, so our new Lifetime Income Choice options let consumers select the income strategy that works best for them. We’re excited to partner with IMOs to bring consumers a more flexible income solution to help meet their diverse retirement needs and goals.”
The Power Series of Index Annuities with Lifetime Income Choice are retirement solutions designed for accumulation and income. In addition to securing lifetime income, they offer the potential for tax-deferred growth, based partly on the performance of an index, while protecting principal against market downturns.
Notes for Editors
Lifetime Income Choice is designed to increase retirement income in any market. It locks in the greater of cumulative interest earned or an annual income credit of 5.50% every year that lifetime withdrawals are not taken, ensuring that future income will increase, even if index performance is flat or down.
When consumers are ready to take income, Max Income offers high initial withdrawal rates of up to 7.25% per year, depending on the owner’s age at the time of lifetime income activation and the number of individuals covered. If the annuity’s account balance becomes depleted, Max Income will provide protected income of up to 4.00% for life.
In contrast, the Level Income option offers a steady stream of lifetime income, even if the annuity’s account balance is depleted. Although maximum withdrawal rates are lower than Max Income at 5.85%, Level Income offers consumers the confidence and security of knowing that their income will not decline for life.
The Power Series of Index Annuities are issued by American General Life Insurance Company (AGL), an AIG member company. Guarantees are backed by the claim-paying ability of AGL.
About AIG Life & Retirement
AIG Life & Retirement brings together a broad portfolio of protection, retirement savings, investment and lifetime income solutions to help people achieve financial and retirement security. The business consists of four operating segments – Individual Retirement, AIG Retirement Services, Life Insurance and Institutional Markets – and holds longstanding, leading market positions in many of the markets it serves.
AIG Life & Retirement includes AIG member insurance companies American General Life Insurance Company (Houston, TX), The United States Life Insurance Company in the City of New York, and The Variable Annuity Life Insurance Company (VALIC), Houston, TX as well as their affiliates. Securities products are distributed by AIG Capital Services, Inc., member FINRA. Additional information about AIG Life & Retirement can be found at www.linkedin.com/showcase/aig-life-&-retirement.
American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies provide a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services to customers in approximately 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.