BALTIMORE, Nov. 14, 2016 /PRNewswire/ -- A new living benefit is now available with most Transamerica variable annuities to enable Baby Boomers and Generation X to better plan their retirement income. The new optional living benefit allows lifetime income payments after age 59, and offers investors the opportunity for up to a 6% annual income payment rate for life if they begin drawing income anytime between ages 65 and 79. For investors who are concerned about planning for longer lives and rising costs as they age, the living benefit offers the opportunity for an annual payment rate of up to 7% for life if they defer drawing income until age 80 or later. These annual income payment rates are based on a single life withdrawal after five complete rider years.
"We know that Baby Boomers and Generation X are looking to fill the income gap between Social Security payments and their retirement income needs. That's why Transamerica is offering new options to help people plan their retirement income," said Joe Boan, senior vice president with Transamerica. "This living benefit offers investors the financial security of lifetime income payments.
"People's longer life spans have increased the need for careful retirement income planning," Boan continued. "That's why we made sure this living benefit allows investment flexibility because more years in retirement mean that some people would like to stay invested in stocks longer to allow for potential growth. Transamerica's new living benefit allows people to invest up to 60% of the portfolio in stock funds, as long as 20% of the portfolio is invested in a stable account and 20% is invested in select options including bond funds. Stocks typically fluctuate more than bonds or cash, and we know that market fluctuations can have an impact on your retirement savings, especially if a market downturn happens right before you plan to retire. With this new Transamerica living benefit, your future income can be protected against market declines, even if the value of your investments fluctuates," Boan added.
With the Transamerica Income EdgeSM living benefit, if investors wait five years after investing to begin taking lifetime income, they will automatically receive a 1% increase on their withdrawal percentage. If investors purchase this living benefit prior to age 65, they will automatically receive an additional 1% increase on their withdrawal percentage if they don't begin taking income until age 65 to 79, or an additional 2% increase on their withdrawal percentage if they don't begin taking income until age 80 or later. The Transamerica Income EdgeSM living benefit is available with a Transamerica variable annuity for an additional cost and must be elected at the time the contract is issued. Because people may need to adapt to life's changes, every five years customers will have the ability to cancel the living benefit if it no longer fits their plans. The living benefit can be elected by customers of any age up to 85. The living benefit withdrawals are available only after the first rider anniversary following the investor's 59th birthday.
To learn more about Transamerica Income EdgeSM, visit www.transamerica.com/individual/products/annuities/annuities-benefits/living-benefits/transamerica-income-edge.
With a history that dates back more than 100 years, the Transamerica companies are recognized as leading providers of life insurance, savings, retirement and investment solutions, serving millions of customers throughout the United States. Transamerica works to Transform Tomorrow® for those who entrust its dedicated professionals with their financial needs, helping them take the necessary steps to achieve their long-term goals and aspirations. Transamerica's 10,000 employees serve nearly every customer segment, providing a broad range of quality life insurance and savings products, individual and group pension plans, as well as asset management services. In 2015, Transamerica fulfilled its promises to customers, paying more than $6.9 billion in insurance and annuity benefits, including return of annuity premiums paid by the customer. Transamerica's corporate headquarters is located in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa. Transamerica is part of the Aegon group of companies. Aegon is one of the world's largest providers of life insurance, pension solutions and asset management products, operating in more than 20 markets worldwide. For the full year of 2015, Aegon managed $768 billion in revenue generating investments. For more information, visit www.transamerica.com.
About Transamerica Variable Annuities
Variable annuities are long-term, tax-deferred vehicles designed for retirement purposes and are subject to investment risk, including possible loss of principal. Variable annuities are issued by Transamerica Life Insurance Company in Cedar Rapids, Iowa, and Transamerica Financial Life Insurance Company in Harrison, New York (Transamerica). Annuities are underwritten and distributed by Transamerica Capital, Inc. Transamerica Financial Life Insurance Company is licensed in New York. All guarantees, including optional benefits, are backed by the claims-paying ability of the issuing insurance company. For more information, visit www.transamerica.com/individual/products/annuities. All policies, living benefits, and forms may vary by state, and may not be available in all states. Rider form numbers are ICC16 RGMB510616(IS), ICC16 RGMB510616(IJ), NIC16 RGMB510616(IS), and NIC16 RGMB510616(IJ).
For more information on a variable annuity please go to www.transamerica.com for prospectuses. You should consider the objectives, risks, charges, and expenses of an investment carefully before investing. Read them carefully before you invest.
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