A new variable annuity minimum withdrawal benefit feature can let guaranteed VA income increase in years when the owner takes withdrawals.
AIG SunAmerica Retirement Markets Inc., Los Angeles, a unit of American International Group Inc., New York, says the new MarketLock Income Plus feature will lock in an investor’s gains, or an annual income credit of up to 7%, whichever is greater.
If an investor takes a withdrawal, such as a 5% withdrawal, this percentage would be deducted from the 7% annual income credit on the next contract anniversary, AIG SunAmerica says.
For investors who do not take withdrawals during the first 10 contract years, the minimum floor for retirement income is equal to 200% of eligible first-year investments.
Annual income credits may be available for up to 15 years.