While nearly nine out of 10 pre-retirees believe their financial resources will last to age 80, far fewer – only 55 percent - are confident their savings will stretch to age 90.² Building a retirement plan is difficult when the ultimate goal is a moving target.

Now Symetra offers a solution: Longevity insurance.

Our new Symetra Freedom Income Annuity, a fixed deferred payout annuity, helps insure your clients against outliving their retirement assets by guaranteeing an income stream starting at a specified future date.

While life insurance protects families from the risk of dying too soon, longevity insurance provides financial protection from the risk of living too long. It is one of the most cost-effective ways to guarantee a lifetime of retirement income.

How does it work?
In the longevity insurance concept, a client uses a small portion of their savings – usually 10 to 15 percent – to buy an income stream that begins in the future. By purchasing the guaranteed income today, the time value of money creates a larger payment in the future than waiting to buy a traditional income annuity. And because clients know that income will begin on a day they choose — usually 10 to 20 years into retirement — they’ll have more freedom to enjoy their current income without worrying that they’ll outlive it.³

Here are some examples of how longevity insurance can work for your clients.

The situation: “Joe” is 60 and has accumulated a retirement nest egg of $1 million. He has just been declared in perfect health and is planning to retire in five years. He is an avid golfer and wants to enjoy his early years of retirement on the great golf courses of the world. Joe wants to insure that he can spend his nest egg doing what he loves, but doesn’t end up penniless after his golf game goes south.

The solution: Joe’s advisor recommends that Joe take 15 percent of his $1 million nest egg and purchase a Symetra Freedom Income Annuity with a start date of age 75. Electing a 15 year deferred payment, at age 75, Joe will receive $4,253 per month4 to cover his expenses for the rest of his life, and has $850,000 left to allocate toward living out his retirement dream for 10 years.

The situation: “Sarah” is 68 years old and has been retired for two years. Despite all of her best efforts, her nest egg today stands at only $500,000. Sarah is amazed at how quickly she is spending her savings. Social Security and her small pension don’t go as far as she hoped. Her parents are still alive and in their 90s. She is concerned about outliving her savings, and she would like to be able to invest her savings more aggressively.

The solution: Sarah’s agent suggests she put 12 percent of her savings into a Symetra Freedom Income Annuity. At age 85, Sarah will receive a monthly income of $3,231,⁴ guaranteed for life. Because her late life income is secure, her advisor recommends a moderately aggressive portfolio for her remaining assets, to give her the ability to earn more.

A Symetra Freedom Income Annuity gives your clients a predictable timeframe for managing the money they are using right now for income and growth. Knowing a fresh source of income will kick in at a point later in life helps eliminate much of the guesswork that plagues many retirement plans.

Symetra Freedom Income Annuity can deliver the peace of mind your clients are seeking and help them enjoy their longer retirement. For more information, visit www.symetra.com/longevity or contact our Sales Center at invest@symetra.com or 1-800-706-0700.