Are You Income Savvy?

You’ve worked to build up your retirement assets. And now, with retirement in sight, it’s time to shift the focus from saving for retirement to creating the future you envision—with lasting lifetime income. To assist you in this process, AIG developed its Income Savvy® program to help you make informed decisions about your retirement income and help create a personalized income strategy that’s right for you.

What is my vision for retirement?

Retirement income planning is a financial and non-financial process. A fully realized retirement vision can help serve as a bridge connecting your working years to your retirement years. Defining your retirement vision can also help you better understand your retirement income needs.

What challenges do I need to be prepared for?

When it comes to generating income from your savings and investments, there are a number of new challenges and pitfalls you may encounter. One way to help protect against a number of these challenges and pitfalls is to ensure that more of your income is  protected.

How do I protect myself against the unexpected?

When it comes to your financial affairs, you more than likely protect what’s important to you with insurance—whether that’s your home, your car – or even your life. Perhaps it’s time to consider protecting a portion of your retirement savings for the income you’ll need in retirement.

How can I generate income from my savings & investments?

If you’re like many individuals nearing retirement, you may be wondering how to turn a portion of your existing savings and investments, including IRA and 401(k) accounts, into the income you’re going to need. While there are a number of different strategies from which to choose, one approach you may want to ask your financial professional about is the Income Floor approach

Where do I start?

The first step in becoming Income Savvy is to consider your retirement income needs. Determine how much money you’re going to need each year—this is your “Income Number.” It’s the sum of your Essential Lifestyle Expenses plus your Discretionary Lifestyle Expenses. Begin by calculating your current expenses and then adjust them based on your desired lifestyle in retirement.

How can I generate more protected lifetime income?

An annuity can help you enhance your retirement security by providing you with income that’s guaranteed to last for as long as you—or you and your spouse—live, depending on your choice of a single life or joint life income option. There are a number of different types of annuities from which to choose. Ask your financial professional for more information.

Becoming Income Savvy isn’t easy, but your financial professional can play a key role. Remember, the choices you make today about your retirement income strategy may be among the most important financial decisions you make in your life. Talk to your financial professional today to determine an income strategy that’s right for you.

Annuities are long-term products designed for retirement. In the Accumulation phase, they can help you build assets on a tax-deferred basis. In the Income phase, they can provide you with guaranteed income through standard or optional features. Contract and optional benefit guarantees are backed by the claims-paying ability of the issuing insurer. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Income protection features may be standard or optional. Additional fees, withdrawal parameters and other limitations apply. Investment requirements also apply with variable annuities. Keep in mind, for retirement plans and accounts (such as IRAs and 401(k)s), an annuity provides no additional tax-deferred benefit beyond that provided by the retirement plan or account itself.

An investment in a variable annuity is subject to risk, including the possible loss of principal. Income annuities, such as immediate annuities and deferred income annuities, permanently convert principal into a guaranteed income stream. Be sure to ask your financial professional for complete details about the annuity you may be considering, including limitations and risks.

Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. Please contact your financial professional or call 1-800-445-7862 to obtain a variable annuity prospectus. Please read the prospectus carefully before investing.

All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of the issuing

insurance company. They are not backed by the broker/dealer from which this annuity is purchased.

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. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice consult the appropriate professional.

Products and features may vary by state and may not be available in all states. The purchase of an annuity is not required for, and is not a term of, the provision of any banking service or activity.

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