As today’s retirees are expected to live longer than previous generations, the Symetra Freedom Income Annuity functions as “longevity insurance.’ The product enables clients to use a small portion of savings to buy guaranteed income for their later years of retirement, according to the press release.
Using Symetra Freedom Income, clients can buy future income at today’s prices with a portion of their retirement savings, starting at 10 or 15%. The company suggests this is valuable because the future cost of income annuities will increase if average life spans continue to lengthen.
For example, if a client wants $2,500 a month for life and purchases a Symetra immediate single premium income annuity at age 85, the premium would cost about $185,000 at today’s rates. However, if a 65-year-old client purchased the same monthly income to begin at age 85 through Symetra Freedom Income, the premium would cost around $31,000.
Clients choose a future date, typically 10 to 20 years, to begin collecting income based on their family history and financial needs. The company says the product offers more flexibility with their portfolio investments than they might with other income options. The annuity includes several optional features including a death benefit, an annual payment increase to help counter the effects of inflation, and an installment refund.