Retirement income Outliving income in retirement has become a concern for many retiring consumers. PrimePath Pro 10 can provide confidence that it will be there to provide income you can’t outlive, and to provide for the possibility of increasing payments over time. Lifetime payment amounts After your 50th birthday, the PrimePath Pro 10 fixed index annuity provides you two choices for taking lifetime payments. Level lifetime payments This option provides a level payment amount for either the rest of your lifetime or the joint lifetime of you and your spouse. Any excess withdrawals that you may choose to take from your PrimePath Pro 10 annuity’s accumulation value will reduce your future lifetime payments by a proportional amount. Increasing lifetime payments This option starts at a lower initial payment amount than the level payment option, but has the possibility of increasing each year, based on the weighted average interest credit percentage.
Lifetime payment percentages (LPPs)
Level LPP
Attained age of covered person
SINGLE covered person
JOINT covered person
50 55 60 65 70 75 80
3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00%
3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50%
85+
Increasing LPP SINGLE covered person
Attained age of covered person
JOINT covered person
50 55 60 65 70 75 80
2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00%
2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00%
85+ 5.50% Lifetime payment percentages increase by 10 bps for each attained age between ages 50 and 85.
When the client starts his lifetime payments, he talks with his financial professional about whether he wants a level payment amount for the higher initial LPA or if he is interested in the increasing payment option (with an initially lower payment) that may be able to help protect purchasing power of his lifetime payments.
LPA example
Level LPA
Increasing LPA
Hypothetical example Benefit base: $179,085 Age: 70 (issue age 60) Level payout: 5.50% Increasing payout: 4.50%
Initial
$9,850 $9,850 $9,850
$8,059 $9,342 $10,830
Age 75 (5 years) Age 80 (10 years)
$18000
LPAs elected
$16000
Increasing option
$14000
$12000
Level option
$10000
$8000
LPA increase percentage: LPA increase percentage is 3%, which is 100% of the hypothetical assumed weighted average interest credit percentage.
$6000
$4000
$2000
3
5
7
9
11
13
15
17
19
21
23
25
27
29
31
$0
1
Years
This hypothetical example is not intended to predict future performance. Alternative assumptions could produce different results.
32754Z
10
REV 1-24
Made with FlippingBook - Share PDF online