A lifetime of income to help fulfill your retirement dreams

Transcription

1 IncomeSure SM guaranteed lifetime withdrawal benefit IncomeSure benefit A lifetime of income to help fulfill your retirement dreams Available with a RiverSource fixed index annuity and issued by RiverSource Life Insurance Company A (11/17)

2 Retirement is not an end point, but a turning point During your working years, you depended on a paycheck to cover your life expenses. With retirement comes greater freedom and new priorities, along with the need to create your own reliable and assured source of income. In essence you ll need to recreate your own paycheck from your retirement savings. Your retirement could last 20, 30 or more years. How can you create an income that will cover your needs? What are your goals for your retirement income? Growing your retirement savings Lifetime income You may want opportunities to grow your retirement savings, while also protecting yourself from the volatile ups and downs of the market. You may also be trying to ensure that your future income will last as long as you need it. IncomeSure is designed to help you achieve these goals. It may also provide for a more confident retirement. The guarantees offered by RiverSource annuities are backed by the strength and soundness of RiverSource Life Insurance Company and are subject to its claims-paying ability. Fixed Index Annuities: Are not FDIC insured Are not a deposit of any bank or bank affiliate Are not bank guaranteed Are not insured by any federal government agency 2

3 The solution begins with a RiverSource Assured SM fixed index annuity. A RiverSource Assured fixed index annuity is a long-term retirement savings vehicle that can help add stability to your retirement portfolio. It can help protect your principal, provide opportunities for growth and create guaranteed lifetime income. With a RiverSource Assured fixed index annuity you are not investing in the market. Instead, you choose how you want to allocate your money between several indexed accounts and a fixed account. Your money isn t invested in the indexes. Rather, you re credited interest based on the performance of the indexes, up to a cap. A fixed index annuity helps protect your principal and any interest credited from downturns in the market. No matter how poorly the indexes might perform, your credited interest will never be less than zero.* Fixed index annuities generally offer tax-deferred growth. This means you don t pay taxes until you take withdrawals. If your annuity is in a retirement plan that already offers tax deferral (such as an IRA), the annuity doesn t provide any additional tax deferral. But you can benefit from the other features that the annuity has to offer, like guaranteed lifetime income. Because of their tax-deferred status, withdrawals made prior to age 59½ may incur an IRS early withdrawal penalty. A surrender charge and/or Market Value Adjustment may apply to withdrawals during the surrender charge period. Introducing the IncomeSure benefit. This benefit provides income growth opportunities along with the security of knowing your income is guaranteed for life, giving you assurance as you enjoy retirement. Even if your annuity contract value goes all the way to zero, you are guaranteed to get an income stream for the rest of your life, as long as you stay within the guidelines of the rider. The IncomeSure benefit is an optional feature that can be added to your RiverSource Assured fixed index annuity for an additional fee of 1.25%. You can select the single life benefit, which covers you (available through age 80), or the joint life benefit, which covers you and your spouse (available through age 85, one spouse must be age 80 or younger). The fee can increase but will never exceed 1.75% and is charged annually on the greater of the contract anniversary value or the Benefit Base. Why add the IncomeSure benefit to your RiverSource fixed index annuity? You want to supplement Social Security and any pension benefits with guaranteed lifetime income. You want the opportunity to grow your income. * Principal protection applies to the contract value before any optional rider fees. Rider fees may cause your contract value to decrease. 3

4 Grow your guaranteed income Grow your future income no matter how the indexes perform. While you re saving for your retirement, consider building a foundation that will help assure your retirement income -- no matter how the indexes perform. The IncomeSure benefit provides opportunities for income growth through Annual Credits. The Annual Credits are added to your Benefit Base, which is the value used to determine the amount of your lifetime income payments. Annual Credits do not apply to your contract value. The Annual Credits are based on your purchase payments and are available for 12 years in any year you don t take a withdrawal. 7.5 % Annual Credits help you grow your future lifetime income Annual Credits can provide guaranteed growth to your future income. Annual Credits are not reduced by fees, so your future income will grow by the full amount of the credit. Annual Credits Base Doubler Benefit Base Contract Value Age The graph is for illustrative purposes only. It does not represent the actual performance of any index account option nor guarantee that your goals will be met. The graph assumes no withdrawals were taken. 4

5 Base Doubler: 2x Benefit Base An additional income growth opportunity with the Base Doubler. The Base Doubler feature guarantees that your future Benefit Base will be double the amount of your purchase payments. The Base Doubler is a one-time increase to your Benefit Base on the 12th contract anniversary as long as you have not taken any withdrawals (including Required Minimum Distributions). For example, if your total purchase payments are $100,000 and you did not take any withdrawals, the Base Doubler feature guarantees that your Benefit Base will be $200,000 after 12 years. The longer you accumulate, the more opportunities you have to increase your guaranteed income. Key points: Contract Value The dollar value of your annuity at any given time. Will not decrease due to negative index performance but is reduced for rider fees. Not impacted by Annual Credits. The lump-sum amount you can withdraw (after any applicable charges, fees and Market Value Adjustments). Benefit Base A separate value that is used to determine your guaranteed income amount. Can increase by Annual Credits or the Base Doubler. Cannot be withdrawn as a lump sum, used as a death benefit or annuitized. 5

6 Live the retirement you envisioned A lifetime of income for the retirement of your dreams When you transition to retirement, you may need to create your own paycheck from your retirement savings. While the IncomeSure benefit doesn t provide a paycheck in the traditional sense, it provides you with income for the rest of your life that is predictable and guaranteed. It can help you meet your essential expenses (such as mortgage payments, groceries and gasoline) throughout your retirement. The amount of guaranteed income you can receive each year is a percentage of your Benefit Base. The percentage you will receive is determined by how old you are when you take your first withdrawal. For the joint life benefit, the age of the younger spouse is used. Your Lifetime Payment Percentage Your Lifetime Payment Percentage will increase every year that you wait to take your first withdrawal, unless you decline a rider fee increase. This allows you the flexibility to choose the timing and percentage of income that best meets your needs. Below are Lifetime Payment Percentages at certain ages. Sample of Lifetime Payment Percentages at Select Ages Example: Julie has the single life benefit and starts taking income at age 65 when her Benefit Base is $200,000. The amount of income available every year will be $10,000 (5% x $200,000). This hypothetical example does not take into account the effect of taxes. Single life benefit 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% Joint life benefit 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% Lifetime payment percentages are 0.10% higher for each age not shown through age 85. For example, at age 66 the Lifetime Payment Percentage for the single life benefit is 5.1% and 4.6% for joint. 6

7 How you can protect your lifetime income When you re determining how much and when to take income, consider these factors: Determining when to start taking withdrawals is an important decision. Once you take your first withdrawal, your Lifetime Payment Percentage will be determined. Additionally, Annual Credits are not available in any year you take a withdrawal. However, you have flexibility to stop and start withdrawals as you wish. And if you are still within your 12-year credit period, you will be eligible for Annual Credits in any year you don t take a withdrawal. For example, assume you are age 65 and you take a withdrawal in year five of your 12-year Annual Credit period. Your lifetime payment percentage is now locked in at 5%, even if you stop taking withdrawals. But you would still be eligible for Annual Credits in years six through 12. You would not be eligible for the Base Doubler. There is a maximum amount available for withdrawal. If you withdraw more than the maximum amount available under the rider or take a withdrawal before age 50, this is considered an excess withdrawal, which will decrease your guaranteed values by the same proportion that it reduces your contract value. If you take an excess withdrawal and your contract value goes to zero, your contract ends and you will no longer receive income from the rider. An excess withdrawal could also be subject to a surrender charge and a Market Value Adjustment. If you decide to take a Required Minimum Distribution (the amount calculated for this annuity only) and it exceeds the maximum amount, it will not be considered an excess withdrawal. Lifetime income and your contract value The income you receive from your IncomeSure benefit is guaranteed to last a lifetime, regardless of your contract value (unless your contract value goes to zero due to an excess withdrawal). Fees and withdrawals will reduce your contract value over time, and it could go to zero. 7

8 Your allocation options Whether you re ready to start taking income now or want to wait a while, you ll need to decide how to allocate your purchase payments. With your RiverSource Assured fixed index annuity, you can choose between a fixed account and several indexed accounts that have the potential to earn interest over a period of one or two years (called an indexed term). To make it easy to maintain your election percentages, you will automatically be enrolled in rebalancing, provided you don t have any allocations to a two-year indexed account. Indexed Account Options The indexed accounts credit interest based on the performance of an index, up to a cap. A cap is the maximum interest rate that an indexed account can be credited each term. Your money isn t invested in the indexes. Index performance does not include dividends. Interest is credited on your contract anniversary at the end of the indexed term. Any money withdrawn from an indexed account before the end of a term will not earn interest. The Fixed Account You ll earn daily fixed interest in the fixed account. We set an interest rate for the fixed account for one year and renew it on each contract anniversary. The fixed account will never earn less than the Guaranteed Minimum Interest Rate of 1.00%. Renewal rates and caps At the start of each new indexed term, interest rates and caps will be reset by RiverSource Life at our discretion and will never be less than the Guaranteed Minimum Interest Rate or Cap. 8 Making it easier to manage your income With a systematic withdrawal arrangement, RiverSource will send you your income in regular payments throughout the year. Additionally, when you have this arrangement, on each contract anniversary, up to your total requested income for the year will be transferred to an interim account where it will earn daily fixed interest. The money will be transferred from the fixed account and any matured indexed accounts (up to the amount available in those accounts). We transfer funds to the interim account so that you receive interest on your money until it is sent to you. Any money withdrawn from an indexed account before the end of the indexed term will not receive interest.

9 Choosing your indexed accounts The indexed accounts are based on widely recognized indexes. S&P 500 Index MSCI EAFE Index U.S. domestic equities The Standard & Poor s (S&P) 500 Index tracks the performance of 500 widely held, largecapitalization U.S. stocks. Foreign market developed equities The MSCI Europe, Australia, Far East (EAFE) Index is a capitalization-weighted index that tracks the performance of common stocks in 21 developed market countries within Europe, Australia and the Far East. The following term lengths and crediting methods are available with the indexed accounts: Index Term Length Crediting Method S&P year Point-to-Point 2-year with a Cap 1-year Monthly Average with a Cap Index Term Length Crediting Method MSCI EAFE 1-year Point-to-Point 2-year with a Cap What is an index? A market index is a measurement of the value of a section of the market. A fixed index annuity does not invest in any indexes. 9

10 RiverSource Life Insurance Company: The strength and soundness to support your dreams As a subsidiary of Ameriprise Financial, Inc., RiverSource Life Insurance Company is one of the top 10 variable annuity issuers in the industry. 1 RiverSource Life Insurance Company s consistent, high ratings by independent rating companies can give you the added confidence that comes from knowing you re working with a strong, stable and reliable company. Rating agencies Moody s moodys.com RiverSource Life insurer financial strength ratings Aa3 Excellent (Fourth highest of 21 ratings) Last update Stable outlook 8/10/17 A.M. Best ambest.com Standard & Poor s standardandpoors.com A+ Superior (Second highest of 15 ratings) AA- Very Strong (Fourth highest of 21 ratings) Stable outlook 11/2/16 Stable outlook 10/24/16 These ratings apply to assets in the insurance company s general account and are subject to change. They do not apply to the performance of the indexes, which are not guaranteed and will fluctuate with market conditions. 1 Source: LIMRA, Q

11 11

12 Would the IncomeSure benefit be right for me? Many people today are choosing to incorporate guaranteed sources of income into their retirement plans to help them meet essential expenses such as mortgage payments, food and healthcare costs. The IncomeSure benefit is a solution to help meet these needs it provides you with a lifetime of guaranteed income. For those who choose a RiverSource Assured fixed index annuity with the IncomeSure benefit, a common strategy is to ensure you can cover your essential expenses. If you think you need more income from your annuity than the maximum available each year, discuss with your financial advisor whether the IncomeSure benefit would be a good fit for you. Keep in mind, you can only cancel the IncomeSure benefit after the fifth contract anniversary or if there is an increase of more than 0.25 percentage points to your current fee. To take full advantage of the guarantees and protection offered by the IncomeSure benefit, be sure to follow the benefit rules explained in your contract and rider. The S&P 500 Index (the Index ) is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ( SPDJI ), and has been licensed for use by RiverSource Life Insurance Company. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC, a division of S&P Global ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by RiverSource Life. RiverSource Life s indexed products (the Products ) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in the Products, nor do they have any liability for any errors, omissions, or interruptions of the Index. The products described herein are indexed, in part, to an MSCI index. The products referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such products or any index on which such products are based. The Contract contains a more detailed description of the limited relationship MSCI has with RiverSource Life Insurance Company and any related products. RiverSource Assured fixed index annuity contract numbers: ICC and state variations. May not be available in all states. Surrender charge schedules: RIverSource Assured (contract years): 7-year 9% 8% 7% 6% 5% 4% 3% 0%; 10-year 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%. IncomeSure rider numbers: ICC SG and ICC JT and state variations. Features may vary, have limitations or may not be available in some states. Fixed index annuities are long-term insurance products. Before you purchase, be sure to ask your financial advisor about the annuity s features, benefits and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives. This information is for a general audience and is not intended to address individual financial riversource.com/annuities situations or needs. RiverSource Life Insurance Company does not provide investment advice. Issued by RiverSource Life Insurance Company, Minneapolis, Minnesota. Affiliated with Ameriprise Financial Services, Inc A 2017 RiverSource Life Insurance Company. All rights reserved. (11/17)