Assured Edge® Advisory annuity offers more portfolio reliability and predictable income with a guaranteed lifetime withdrawal benefit.
The Market1
In Q2 2022, total fixed-rate deferred annuity sales (including MYGAs) were $28.2 billion, a 76% YOY increase and the best sales quarter for fixed-rate deferred annuities ever recorded. In the first half of 2022, fixed-rate deferred annuities totaled $44.1 billion, a 44% increase compared with the same period last year. Significant interest rate increases coupled with investors' desire for principal protection with growth potential have increased the popularity of these products amongst clients and advisors alike.
Why DPL Likes Assured Edge® Advisory
Assured Edge Advisory is a versatile income solution that can adapt to future financial needs with a simple three-step approach to help balance retirement portfolios. With protection from the market built in, it accumulates tax-deferred for greater growth potential when compared to traditional fixed income products. The guaranteed lifetime withdrawal benefit (GLWB) provides predictable income each year for as long as your client lives – even if the contract is completely depleted because of lifetime withdrawals and allows future income to grow faster with an annual income credit every year until beginning lifetime income payments.
How to Think About Commission-Free Fixed Annuities
When your client needs:
PRINCIPAL PROTECTION: Fixed annuities are typically used for clients nearing or in retirement, as they protect principal from market downturns, yet provide a minimum guaranteed rate of return.
FIXED INCOME: Fixed annuities provide a consistent stream of income for clients that are looking to reliable returns without market risk.
CASH REPLACEMENT: Fixed annuities can be used as a higher-yielding alternative to CDs or money market accounts, but with a similar risk profile.
Product information provided by Corebridge Financial, Inc.
1LIMRA: Second Quarter Annuity Sales Shatter Record Set During the Great Recession. July 2022.
Annuities are long-term products designed for retirement.
Retirement accounts such as IRAs can be tax deferred regardless of whether or not they are funded with an annuity. The purchase of an annuity within an IRA does not provide additional tax-deferred treatment of earnings. However, annuities do provide other features and benefits.
Withdrawals may be subject to federal and/or state income taxes. A 10% federal early withdrawal tax penalty may apply if taken before age 59½ in addition to ordinary income tax. Partial withdrawals may reduce benefits and contract value.
This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. For legal, accounting or tax advice consult the appropriate professional.
Annuities are issued by American General Life Insurance Company (AGL). Issuing company AGL is responsible for the financial obligations of insurance products is a member of Corebridge Financial. Guarantees are backed by the claims-paying ability of the issuing insurance company. AGL does not solicit, issue or deliver policies or contracts in the state of New York.
May not be available in all states and product features may vary by state. Please refer to the contract.
© Corebridge Financial. All rights reserved.