cover your most important expenses
Post on 18-Jan-2017
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Cover your most important expenses in retirement. How can you convert your retirement savings into retirement income?
Using a combination of guaranteed sources and his $1 million of savings, this 65-year-old man wants to create a $90,000 per year retirement income stream. He needs $65,000 to cover his most important living expenses (such as food, rent, utilities, etc.), and he wants $25,000 to spend at his discretion (for things like entertainment, gifts, and vacations).
IRAs, employer sponsored
retirement plans,and other savings
During your working years, you’ve focused on accumulating assets for retirement. At retirement, you’ll look to turn those assets into income. Income that lasts your whole retirement can help ensure that your most important expenses—like your groceries, your housing, and your bills—are covered, always.
Before retirement Retirement
Savings = $1 Million Annual Income Goal = $90,000
Pension
SocialSecurity
Shortfall
Shortfall
$25,000
$29,000
$12,000
$24,000
DiscretionaryExpenses
Basic Expenses = $65,000
Primary concern
New York Life Insurance Company
New York Life Insurance and Annuity Corporation (A Delaware Corporation)
51 Madison Avenue New York, NY 10010
www.newyorklife.com
14309.RB.072014 SMRU458772(Exp.05.23.2015)
This hypothetical example is for illustrative purposes only and is based on a New York Life Guaranteed Lifetime Income Annuity with cash refund payout option for a male, age 65. This example assumes an annual income of $29,000. Annual income amounts are based on rates in effect as of 5/23/2014. Payout rates and actual income amounts are subject to change and may vary based on age, gender, payout option, premium amount, and interest rates in effect at time of policy issue. Annuity payments consist of interest and return of premium. Payout rate is not an interest rate.
For most jurisdictions, the policy form number for the New York Life Guaranteed Lifetime Income Annuity is ICC11-P102. State variations may apply.
* Issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Corporation, a wholly owned subsidiary of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. Guarantees are based on the claims-paying ability of the issuer. Product and features not available in all jurisdictions.
Guarantee a portion of your retirement income.
His pension and Social Security guarantee him a lifelong income of $36,000. But he still needs an additional $29,000 per year just to ensure that his basic living expenses will always be covered regardless of market ups and downs. He would also like to cover his discretionary expenses, but that is a secondary concern at this time. To address the basic expense shortfall, he can convert a portion of his savings into a New York Life Guaranteed Lifetime Income Annuity,* guar-anteed to pay the $29,000 per year he needs for the rest of his life.
GuaranteedLifetime
Income Annuity$497,546
Before retirement Retirement
Savings = $1 Million Annual Income Goal = $90,000
Pension
SocialSecurity
Shortfall
GuaranteedLifetimeIncomeAnnuity
$25,000
$29,000
$12,000
$24,000
DiscretionaryExpenses
Basic Expenses = $65,000
$502,454
(Includes return of premium)
LIMRA, current rankings.
Based on premium amount each year
since 2006.
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