We learned about a flexible new deferred income annuity from MetLife in a recent Wall Street Journal press release. “MetLife Introduces a Deferred Income Annuity with a New Level of Flexibility” discusses the Guaranteed Income Builder and summarizes its features. This new deferred income annuity offers consumers a lifetime income stream similar to that of a pension. Your guaranteed income payments are coupled with a level of flexibility that MetLife says is hard to find in any other deferred income annuity. These income payments are based on the amount of your annuity purchase payment and the date that you choose to start receiving your income payments. This makes it easy to invest your other money elsewhere and plan accordingly for how much income you will receive monthly when you begin your annuity payments.
MetLife’s Retail Annuity Products’ Senior Vice President says that the Guaranteed Income Builder DIA has many features that offer consumers more flexibility than they would get with other DIAs. Your original annuity purchase can be for only $2,500, which allows you to build the value of your annuity premium over time. Even if you make changes to your annuity, like adding money to the premium, you will always know how much your future income payments will be. You have the ability to change your payment start date to be earlier or later if the need arises. This can be done twice during your contract. You can also start just a portion of your income earlier than planned if you need to. If your money is funded through an IRA, you can defer receiving your payments all the way to age 75. There is also the option to cash out your premium if your plans change.
There are a lot of different people who can benefit from the flexibility and guaranteed income of the Guaranteed Income Builder. This deferred income annuity is best used as a supplement to your other sources of retirement income. People between the ages of 45 and 65 are most likely to benefit from the Guaranteed Income Builder. When you are aged 45-54, this DIA can help you to fund your retirement over time. Those who are aged 55-65 and looking to retire in the next 5-10 years can benefit from this DIA. Anyone looking for a reliable income stream to function like a pension for their retirement could be well suited for this annuity. MetLife’s Guaranteed Income Builder helps combat longevity risk for those who are worried that they might run out of money in retirement. This DIA is also a good option for people who are looking to turn their retirement savings into a lifetime stream of guaranteed income.
Written by Rachel Summit