BUA Retirement Income Case Study: Maximum Income Growth

News Image 03-28-2014

Advisors are increasingly called upon for ideas on retirement fixed income solutions. At times, it can be hard to know who to turn to. BUA specializes in client centered solutions. For example, take a look at a case an advisor recently brought to BUA:

The Client:
Female, age 53, with $160,000 in qualified money

The Objective:
Her objective was to maximize income, while maintaining access, at a planned retirement age of 67. She was concerned she did not have enough to retire on, and wanted to maximize her income potential at retirement while avoiding the risk of loss of principal along the way.

The Solution:
The solutions we considered included Deferred Immediate Annuities (DIAs) as well as free withdrawal programs, but the guarantees and flexibility of the Guaranteed Minimum Withdrawal Benefit offered with Index Annuities won out.

In this case, we recommended the American General AG Choice Index 10 with the LifeTime Income Plus rider. American General met the requirements for issues age as well as maximum income at her desired retirement age. The AG LifeTime Income Rider income bases increases to double the premium if no withdrawals are taken before the tenth contract anniversary. This fit this situation well with a high chance the client wouldn’t need to access the account during the first ten years.

The American General rider offered a great solution here, but for different clients with different needs, we'll have different recommendations. Contact the BUA Annuity Team for more information on this case study, product information and fixed retirement income case design solutions at 1.800.792.6795.