Income Solutions® is one of the very few programs, if not the only program available that allows individuals, independent of their employer, to convert retirement assets to a guaranteed income stream through the purchase of an institutionally priced immediate annuity. For the first time individuals can benefit from a similar competitive quoting process and pricing that large institutional buyers have access to and they can choose not only the annuity terms that best meet their needs, but can select the annuity provider as well. All annuity quotes requested through Income Solutions® are competitively quoted and priced as though the individual were a large institutional buyer. The program provides individuals with the same access to participating insurance companies as other large institutions.
This illustration shows the approximate benefits an individual may expect to receive when institutional pricing and competitive quoting are combined.
For example, a $200,000 single life only annuity for a 65 year old male resulted in a monthly payment of $1,311 when purchasing an annuity through the Income Solutions® program versus $1,232 a month when buying a traditional retail annuity. This example is a difference of 6.4% or a $79 increase in your monthly income. Over a 10 year period this differential equates to $9,500, over 20 years it is approximately $18,900 and over 30 years the difference grows to $28,400. Depending on the type of annuity and data provided, monthly income amounts for competitively bid, institutionally priced annuities are typically higher than the monthly income amount provided by retail priced annuities.
The internal costs and distribution fees associated with retail annuity products can significantly diminish the income benefits to investors. All Income Solutions® offerings are provided on a net basis. This means that when an individual receives their quote; there is no added cost; the monthly income quote reflects the cost associated with a provider’s participation in the program. The Income Solutions® program is dedicated solely to providing individuals with immediate annuity quotes and related information. The program does not offer variable or deferred annuity products that may be purchased on a retail basis.