New York Life Clear Income Advantage Addresses Key Retirement Income Concerns, while Offering Flexibility and Access

Rhea-AI Summary

New York Life has introduced Clear Income Advantage, a fixed deferred annuity featuring a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. This product aims to address retirement concerns, particularly for those within the five years leading up to retirement and five years into it. Key benefits include access to account value, guaranteed income for life, protection against market volatility, and potential income growth through deferral credits. This offering responds to the growing demand for flexible retirement solutions amid economic uncertainty.

Positive

• New product addresses key retirement concerns, particularly inflation and market volatility.
• Offers flexible access to account value before and after activating income.
• Guaranteed income for life back by financial strength of New York Life.
• Protection from market volatility with income growth opportunities.

Negative

• None.

New Annuity Offering Provides Confidence and Security to Navigate a Complex Retirement Landscape

NEW YORK--(BUSINESS WIRE)-- New York Life, America’s largest mutual life insurer¹, today announced the launch of Clear Income Advantage, a fixed deferred annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider that offers a combination of income, security, liquidity and flexibility in one retirement income solution.

“In designing Clear Income Advantage, we talked to people near to and in retirement about their top retirement concerns. We heard that the vast majority of individuals in the red zone of retirement – five years before and five years into retirement – are most concerned about macroeconomic factors like inflation and market volatility impacting their savings and healthcare or long-term care expenses. This large segment of investors wants retirement solutions that provide flexible guaranteed income, and many told us it was important that retirement solutions offer them access to their money,” said Todd Taylor, SVP and Head of Retail Annuities, New York Life. “Clear Income Advantage addresses this concern and is the latest addition to our broad suite of income solutions designed to meet more client needs and help people navigate retirement more confidently.”

Clear Income Advantage is a fixed deferred annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider that allows clients to convert a portion of their retirement savings into guaranteed payments that they cannot outlive, helping them cover their most important expenses and maintain their lifestyle. Additional features include:

• Access to money – Clear Income Advantage policyowners maintain access to their account value before and after their lifetime income has been activated, providing flexibility and options for those whose needs have changed since purchase.*
• Guaranteed income for life – Backed by the financial strength of New York Life, the #1 provider of annuities and the #1 provider of guaranteed income annuities².
• Protection from market volatility – A client’s account value and guaranteed income are never tied to market performance.
• Opportunity for income growth – Each year clients choose to defer income, their guaranteed income amount will grow based on a predetermined percentage called a Deferral Credit and can increase the withdrawal rate when income starts.

“Planning for a long, secure, financially independent retirement has become more complex over time. Unlike saving for retirement, there is no universally accepted strategy for how and how much to spend when someone reaches retirement. As a result, we see retirees spending less, retreating from higher levels of equity allocation – especially in times of market volatility – and unnecessarily constraining their lifestyles in retirement,” said Taylor. “Our research³ shows that those with guaranteed income as a part of their retirement strategy comfortably spend more in retirement. That’s why we believe it’s important to create solutions, like Clear Income Advantage, that address retirees’ income needs and the behavioral aspects that may be holding them back from enjoying the retirement lifestyle they desire.”

For more information about Clear Income Advantage, visit www.nylannuities.com.

ABOUT NEW YORK LIFE

New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest¹ mutual life insurance company in the United States and one of the largest life insurers in the world. 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 has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies.⁴

¹Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 5/23/2022. For methodology, please see http://fortune.com/fortune500/.

²LIMRA full year 2022 annuity sales.

³ The Decumulation Paradox, Investments and Wealth Monitor, July / August 2018

⁴Individual independent rating agency commentary as of 10/18/2022: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).

*Please note, certain withdrawals may be subject to surrender charges or a Market Value Adjustment. Any withdrawals made prior to activating your income will reduce your future guaranteed lifetime income payments. After income starts, any withdrawals exceeding your guaranteed lifetime income amount will also reduce your future income payments.

An MVA only applies when the policy owner surrenders or makes a withdrawal from the contract that is greater than the surrender-charge-free withdrawal amount during the surrender-charge period and will add or deduct an amount from your annuity or from the withdrawal amount you receive based on a formula and the prevailing interest rate environment.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230405005311/en/

Sara Sefcovic

New York Life Insurance Company

(212) 576-4499

Sara_M_Sefcovic@newyorklife.com

Lauren Nussbaum

Sloane & Company

818-426-3201

lnussbaum@sloanepr.com

Source: New York Life

FAQ

What is Clear Income Advantage by New York Life?

Clear Income Advantage is a fixed deferred annuity with a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider designed to provide guaranteed income for life.

What features does Clear Income Advantage offer?

It offers access to account value, guaranteed income for life, protection from market volatility, and income growth opportunities through deferral credits.

Who is the target audience for Clear Income Advantage?

The product targets individuals nearing or in retirement, particularly those concerned about inflation and market volatility.

How does Clear Income Advantage address retirement concerns?

It provides flexible guaranteed income and allows for continued access to savings, addressing concerns about economic factors affecting retirement.

What impact does Clear Income Advantage have on New York Life's offerings?

It expands New York Life's suite of retirement solutions, meeting the increasing client demand for secure income options in retirement.