AARP Financial has teamed up with New York Life Insurance Company to launch the AARP Lifetime Income Program, a program designed to generate a more secure stream of retirement income for AARP members. The new product offers fixed immediate annuities, issued by New York Life Insurance and Annuity Corporation (a division of New York Life), which will the insurer says will provide guaranteed income for life to AARP members between the ages of 50 and 85.

“Mindful they run the risk of outliving their assets without ongoing income, many AARP members have expressed interest in the potential of annuities to help fill their income gap,” Larry C. Renfro, AARP Financial president said in a statement.

Indeed, according to New York Life research, more than half (58%) of pre-retirees surveyed by the company thought it important at or near retirement to supplement the income they will receive from Social Security or pensions by purchasing a product like an income annuity that provides guaranteed retirement income. Both AARP and New York Life are keen to combine their efforts in order to make this possible.

“The new AARP Lifetime Income Program from New York Life will help AARP members effectively address one of retirement’s most urgent financial needs,” Renfro said.

Through the new program, an individual can decide the amount of income they wish to guarantee and purchase an annuity in the amount required to establish that stream of income. The insurer does the rest, delivering a monthly paycheck for the remainder of the annuitant’s life. This guarantee is backed by the claims paying ability of New York Life and Annuity Corporation.

The AARP Lifetime Income Program sets a minimum premium of $5,000 to begin a lifetime stream of income, and sets no maximum premium for the plans. Since the single premium is locked in, each income payment an AARP member receives represents a return of premium and interest. Currently, a 65-year-old male can expect annual income payments in excess of 7% of premium guaranteed for life from a $100,000 Cash Refund annuity.