Fidelity, MetLife Push New Guaranteed Annuity

BOSTON (TheStreet) -- Fidelity Investments and MetLife(MET Quote) introduced a new annuity product Monday that targets investors nearing retirement who are trying to shore up their assets after a painful bear market.

The MetLife Growth and Guaranteed Income (MGGI) variable annuity is distributed exclusively through Fidelity and is the only deferred variable annuity with a living benefit sold through the company. It's being marketed to investors who are either retired or preparing for retirement.

Investors fund the annuity using a portion of their existing retirement savings, including tax-deferred accounts like IRAs or employer-sponsored accounts such as a 401(k) plans. There is a $50,000 minimum investment.

Starting at age 59 1/2, the annuity provides an annual withdrawal benefit that's guaranteed for the holder's life. It includes a death benefit that allows individuals to leave assets to their beneficiaries.

Backed by MetLife, MGGI serves as a Fidelity-managed "fund of funds" that invests in more than 30 mutual funds for an asset allocation that's 60% equities, 35% fixed income and 5% money market portfolios.

"Given what investors experienced over the last year, I think they understand much more viscerally today the value of guarantees," says Jon J. Skillman, president of Fidelity Investments Life Insurance. "When you see the value of your retirement accounts shrink by maybe 50%, you begin to appreciate the comfort and security, at least for a certain portion of your assets, of a guaranteed income stream for as long as you live without any danger that it will ever go down."