BALTIMORE, Nov. 14, 2016 /PRNewswire/ -- A new living benefit is now available with most Transamerica variable annuities to enable Baby Boomers and Generation X to better plan their retirement income. The new optional living benefit allows lifetime income payments after age 59, and offers investors the opportunity for up to a 6% annual income payment rate for life if they begin drawing income anytime between ages 65 and 79. For investors who are concerned about planning for longer lives and rising costs as they age, the living benefit offers the opportunity for an annual payment rate of up to 7% for life if they defer drawing income until age 80 or later. These annual income payment rates are based on a single life withdrawal after five complete rider years.
"We know that Baby Boomers and Generation X are looking to fill the income gap between Social Security payments and their retirement income needs. That's why Transamerica is offering new options to help people plan their retirement income," said Joe Boan, senior vice president with Transamerica. "This living benefit offers investors the financial security of lifetime income payments. "People's longer life spans have increased the need for careful retirement income planning," Boan continued. "That's why we made sure this living benefit allows investment flexibility because more years in retirement mean that some people would like to stay invested in stocks longer to allow for potential growth. Transamerica's new living benefit allows people to invest up to 60% of the portfolio in stock funds, as long as 20% of the portfolio is invested in a stable account and 20% is invested in select options including bond funds. Stocks typically fluctuate more than bonds or cash, and we know that market fluctuations can have an impact on your retirement savings, especially if a market downturn happens right before you plan to retire. With this new Transamerica living benefit, your future income can be protected against market declines, even if the value of your investments fluctuates," Boan added.