A Robust Year for Fixed-Rate Annuities

The year 2023 is expected to finish as a record one for many categories of annuities.

By MassMutual Strategic Distributors

The year 2023 has proven to be one where many people looking for stable retirement income have embraced fixed-rate and deferred income annuities.

According to preliminary results from LIMRA’s U.S. Individual Annuity Sales Survey, total annuity sales increased 21% in the first nine months of 2023.

“Equity markets rebounding in 2023 combined with a strong increase in interest rates has allowed insurance companies to add additional value in their annuity offerings to investors,” said Todd Giesing, assistant vice president, LIMRA Annuity Research. “LIMRA expects 2023 sales will surpass the record sales set in 2022.”

Fixed-rate deferred (FRD) annuities have been among the products that have benefited from the growing interest in annuities. For the first nine months of 2023, FDR sales totaled $106.4 billion, up 43%, LIMRA said.

Phil Michalowski, head of annuity product with MassMutual, observed: “Retirement years can be filled with uncertainty, and an annuity can help grow retirement savings, secure retirement income predictability and can help retirees when it comes to holding off filing for Social Security to receive the largest possible benefit for life.”

Recognizing the need, MassMutual in mid-October introduced a new fixed deferred annuity to its retirement savings and income offerings, MassMutual Premier VoyageSM, joining MassMutual Stable Voyage on its fixed annuity shelf.

Fixed deferred annuities provide a fixed rate of interest, tax deferral, a death benefit, and the potential to turn those assets into guaranteed lifetime income. An important benefit is the ability to grow principal with a guaranteed fixed rate of interest and then have that interest compound on a tax-deferred basis.*

MassMutual Premier Voyage provides the choice of multiple guarantee periods, from 2 to 7 years, in which to invest an initial purchase payment as well as the ability to easily renew the contract value into the same or a different multi-year guarantee period at the end of the initial guarantee period. Additionally, a free withdrawal amount is available each year of the contract.

MassMutual Premier Voyage also offers a higher issue age, higher annuitization age, and more rate bands than previous multi-year guarantee annuities (MYGAs) issued by MassMutual as well as the ability to add purchase payments on the renewal date. MassMutual Premier Voyage, which has a market value adjustment, is available in all states except California and New York.

Financial Professionals who want to learn more about MassMutual Premier Voyage or MassMutual’s many other annuity products may contact us.

FOR FINANCIAL PROFESSIONALS. NOT FOR USE WITH THE PUBLIC.

* Tax deferral is automatically provided by tax-qualified retirement plans, including IRAs. There is no additional tax-deferral benefit provided when an annuity contract is used to fund a tax-qualified retirement plan or an IRA. Investors should only consider buying this contract in conjunction with a tax-qualified retirement plan or an IRA for the annuity’s insurance features such as lifetime income payments.

MassMutual Premier VoyageSM (Contract Form #FPFA22-PV, and ICC22-FPFA-PV in some states including NC) is a fixed deferred annuity contract issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111.

MassMutual Stable VoyageSM (Contract Form #SPFA11.1, SPFA11.1-Rev, and ICC13-SPFA11.1 in some states including NC) is a single premium deferred fixed annuity contract issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111

Products and features may not be available in all states or firms.

MM202611-307499

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