SunAmerica announced Wednesday two new lifetime income options for retirees. The new benefits were added to the firm’s Polaris variable annuities, and were designed with input from financial advisors and investors, according to Steve Maginn, chief distribution officer for SunAmerica, in a press release.
SunAmerica Income Plus 6% Income Option 2 offers retirees the opportunity to begin taking 7% annual withdrawals once they reach age 65. Income option 1 allows participants to make 6% withdrawals at age 45. During the first 12 years, participants with the Income Plus option can lock in the greater of investment gains, or annual income credit of up to 6%.
SunAmerica Income Builder 8% Income Option 2 provides 8% guaranteed growth for up to 12 years. Once participants reach age 65, they may begin withdrawing 6.5% annually. Each year participants do not take a withdrawal in the first 12 years, the Income Builder option locks in investment gains or an income credit of 8%.