Case Study - Annuity Review
How a 77- and 76-year-old Couple used an annuity review to unlock $108,000 in flexibility.
And keep the same lifetime income they had.
This is the actual results of the review of two annuities in 2025 and the benefits the clients receive.
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This retired couple was able to choose from two possible ways to improve their financial life, either-
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More guaranteed lifetime income using the same amount of investment
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A new liquid account and the same amount of guaranteed income
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Here is how the annuity review opened up these new opportunities.
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Background information - husband and wife, ages 77 & 76.
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The couple had each purchased an annuity when they retired in 2009. The annuities were allowed to grow for a few years and then the couple started receiving the Guaranteed Lifetime Withdrawal Benefit (GLWB).
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Along with Social Security and pensions, the annuity payments of around $3,000 each month allowed them to live comfortably.
Their Current Annuities
Their two annuities were providing them with $39,500 a year of guaranteed income. At the time of the review, their two annuities were worth $508,000.
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They would receive the $39,500 for as long as either of them were alive, even if their annuity account values went to zero.
New Annuities Provide
With today's higher interest rates, insurance companies are able to allocate more of each new annuity premium to growth potential or higher income.
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New annuities were able to provide the couple with the same annual income of $39,500 but using only $400,000 of annuity premium.​​
Course of Action
The couple ended up transferring $400,000 to the two new annuities and left $108,000 with their current annuity. That $$ is readily available.
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The $108,000 they hope to let grow. Maybe even turning it into more guaranteed income at some point in the future!
Any change or surrender of an existing annuity must be made with adequate consideration and with full understanding of any costs, taxes, surrender charges, contract terms, loss of current features and liquidity, and differences in insurance companies.
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Our annuity review will allow you to intelligently communicate
with your tax and legal advisors.