Annuity Awareness

Learn more about how the modern annuity uses flexibility and diversity to effectively address a wide range of clients' needs.

What's behind the popularity of modern annuities?

Jon Cressman, Transamerica’s VP and Managing Director for Annuities Wholesale Distribution, provides compelling insight into why modern annuities are so effective at addressing a range of client needs.

Today's annuities can help your clients prepare for their best retirement by mitigating a range of risks.

Retirement Risk
Client Impact
Annuity Opportunity
Business-Building Content

Longevity Risk

Market Risk

Reliance Rate Risk

Sequence of Returns Risk

The risk of outliving savings used to generate income in retirement

Investors tend to limit exposure to equities-related risks as they approach retirement. This may mean missing out on growth potential.

The more reliant an investor is on their investment portfolio for retirement savings, the more likely market volatility will impact their retirement income.

For investors retiring at the beginning of a market downturn, withdrawals and poor performance can deplete income quickly, making it difficult to recover.

A variable annuity with a living benefit can provide a guaranteed non-reducing income stream for life, even if a client’s policy value falls to zero.¹

A recent study by BlackRock® showed adding guaranteed lifetime income combined with a more aggressive asset allocation generates 29% more annual spending ability from one’s retirement savings (excluding Social Security) and reduces downside risk by 33%.²

Using a variable annuity with a living benefit may help reduce the risk market fluctuation can have on retirement income.

Guarantees offered with a variable annuity living benefit can offer a locking feature that protects a client’s withdrawal base and provides income that can never be reduced.¹

Explore our guide on how to communicate with clients about longevity being an opportunity rather than a challenge.
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A study by BlackRock and the Bipartisan Policy Center shows how individuals can significantly optimize their retirement income.

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Use Capital Group's Portfolio Reliance Calculator to demonstrate how protected lifetime income can positively impact your client's portfolio reliance and withdrawal rates.

Portfolio Reliance Calculator

Mike Sosnowski, CFP®, CLU®, ChFC®, RICP®, Director, Advanced Markets, discusses the 4% rule and outlines the impact of guaranteed income on the rest of a retirement portfolio.

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Examine the comparison of outcomes based on the sequence of market returns.
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¹ As long as withdrawals do not exceed the living benefit withdrawal amount.

² When compared to a standard retirement portfolio of 60% fixed income and 40% equities. There are many ways to measure downside risk; for simplicity, this analysis uses the worst 5% of spending outcomes (i.e., the saver has a 95% chance of spending at least this much over the first 15 years) as a benchmark. BlackRock® uses undiscounted spending in real dollars.

Offer your clients a smarter retirement strategy — one that reduces the withdrawal requirements needed to generate income from a managed account with guaranteed lifetime income from a variable annuity.

Competitively high withdrawal rates AND market gains work together to help create non-reducing, guaranteed retirement income.

Help clients stay in control of their financial future by balancing a level of protection with the opportunity to capture market gains.

Make a difference for your clients and your business with an annuity that does more.

Variable annuities are long-term, tax-deferred vehicles designed for retirement purposes and are subject to investment risk, including possible loss of principal.

Your clients should consider a variable annuity’s investment objectives, risks, charges, and expenses carefully before investing. Go to transamerica.com for prospectuses containing this and other information. Encourage them to read it carefully.

Annuity fees and charges include mortality and expense risk fee and administrative charge, surrender charges, annual fee, and investment option management fee. Additional fees may apply to optional benefits selected, including living benefit riders.

All guarantees are based on the claims-paying ability of the issuing insurance company.

Withdrawals of taxable amounts are subject to ordinary income tax and may be subject to a 10% additional federal tax if withdrawn before age 59½.

Annuities issued in all states except New York by Transamerica Life Insurance Company, Cedar Rapids, Iowa, and in New York by Transamerica Financial Life Insurance Company, Harrison, N.Y. Annuities are underwritten and distributed by Transamerica Capital, Inc. 1801 California St., Suite 5200, Denver, CO 80202, FINRA member. References to Transamerica may pertain to one or all of these companies.

For Broker-Dealer Use Only. Not for Use with the General Public.

Annuity awareness