New York Life Launches Mutual Income QLAC

Addresses Two Retirement Income Trends: Flexibility and Access to More Income

September 14, 2015 — NEW YORK–(BUSINESS WIRE)–New York Life has launched a new income annuity, Mutual Income, designed to offer clients the opportunity to directly participate in the company’s mutual structure. Separately, New York Life has expanded its income annuity options available on tax-qualified savings. Both innovations address the growing demands of retirees and pre-retirees.

“New York Life’s agents represent the market leader in income annuities*, and they have worked with hundreds of thousands of Americans as they prepare to turn their hard earned retirement savings into income. Through that work, we’ve learned that retirement is unique to each individual, but guaranteed retirement income is something they all value. With the launch of New York Life Mutual Income Annuities** and the availability of our deferred income annuities as Qualifying Longevity Annuity Contracts (QLACs), we are giving pre-retirees and retirees the guarantees they want and the ability to customize retirement income to meet their needs,” said Dylan Huang, managing director, New York Life.

Mutual Income Offers Growth in Retirement Income

Mutual Income works much like a traditional income annuity, where income can begin immediately or be deferred until a future start date of the client’s choosing. As with other income annuities, a client invests a lump sum with an insurer, and receives an income stream that’s guaranteed for life. But unlike traditional income annuities, the total income amount is not capped at the guarantee. As policy owners, New York Life’s Mutual Income clients will also be eligible for annual dividends that can be used to increase their retirement income beyond the guaranteed amount.***

“With the launch of Mutual Income, New York Life is, for the first time, expanding its dividend opportunity to our income annuity clients,” said Mr. Huang. “This is a historic product offering from New York Life that greatly expands our mutual structure to benefit our policy owners looking for retirement income. They are eligible to receive a dividend if declared, and because we do not have shareholders, policy owners can expect that the company’s highest priority will be safeguarding their interests.”

“Dividends can also offer a means of inflation protection,” Mr. Huang added. Inflation protection is a meaningful benefit for the nearly 50 percent of retirees and pre-retirees who have a strong preference for income payments that may increase to cope with inflation over the course of their retirement. (Secure Retirement Institute, 2014).

QLAC Offers Flexibility with Retirement Income

Approximately 70% of purchasers of New York Life’s deferred income annuity are using tax qualified retirement savings they already have in IRAs or 401(k)s — but until now, an individual’s ability to decide when to start income has been limited by Required Minimum Distribution (RMD) rules, which generally require retirees to begin withdrawing from their qualified accounts by age 70½. New York Life saw evidence of this limitation among its own customers: almost a third (31%) of purchasers using non-qualified money elect an income start date between the age of 70½ and 85, indicating a desire to defer income to a more advanced age.

unlike traditional income annuities, the total income amount is not capped at the guarantee

“We believe the purchase pattern that we see in our non-qualified sales indicates that there will be even more interest in deferred income annuities now that the income start date is permitted beyond the age of 70½. When pre-retirees have no restrictions around the income start date, they are using the flexibility that deferred income annuities afford to create retirement income tailored to their specific needs,” added Mr. Huang. “Some will want to use other assets to fund the early years of their retirement, some will be looking to leverage the power of deferral to provide for expenses later in life and others may want to work into their 70s without having to tap into their retirement savings via an RMD. All can benefit from learning about the benefits of QLACs.”




New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States**** 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+).***** 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 Investments****** provides institutional asset management. 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 for more information.
*New York Life is the leader in sales of deferred income annuities, with 35 percent of the market for first quarter 2015, according to LIMRA International, U.S. Individual Annuity Sales Survey, Participants Report, Deferred Income Annuities, First Quarter 2015 results.
**New York Life Guaranteed Mutual Income and Future Mutual Income Annuities are issued by New York Life Insurance Company. All guarantees are based upon the claims-paying ability of the issuer. Note: for qualified Future Mutual Income Annuity, any dividend payments received during deferral must be used to purchase additional income.
***Dividends are not guaranteed.
****Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/15/15. For methodology, please see
*****Individual independent rating agency commentary as of 8/11/15.
******New 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.