Income Options

Annuities Information

Financial Terms

Related Information

What Are My Retirement Income Options?

Annuitization offers many choices. You can choose a fixed or variable payout, or combine them. When you select a guaranteed lifetime payout option, you can transform your account balance into a regularly distributed, guaranteed lifetime income. The guarantee is backed by the claims-paying ability of the insurance company. There are three basic options here.

• Life only makes payouts as long as you live, but makes no provisions to pay anyone after you die. This option generally pays the highest income.

• Life with period certain makes payouts for long as you live or a set number of years (to your beneficiary), whichever is longer.

• Joint and survivor pays income as long as either you or your co-annuitant or beneficiary lives. You may specify a reduction in the payout amount after the first death.

Leaving funds on deposit allows your account to continue to grow tax deferred until you withdraw it for retirement income needs or required minimum distributions. This could be a good option if you don’t need the money right away when you retire.

Partial withdrawals allow you to withdraw money while the rest stays in your account continuing to grow tax deferred. This option can help you meet certain financial needs if you aren't yet ready to receive scheduled distributions.

Systematic withdrawals allow you to receive income automatically at specified intervals, but you still maintain access to your accumulated retirement account balance. You can choose several methods: Specified dollar amount, specified percentage, substantially equal periodic payments or five-year payment method.

Lump-sum distribution means you withdraw all the money from your annuity as a single, lump-sum payout. Bear in mind that the previously untaxed contributions and earnings in the account will be taxed as ordinary income and also may be subject to surrender charges. In addition, the distribution could be subject to a 10% federal tax penalty if you are under age 59½. Also consider that you will lose the benefit of tax-deferred investment earnings on these funds.

Guaranteed Minimum Withdrawal Benefit (GMWB) is a living-benefit offered by some annuity contracts. Once you purchase the annuity, you can add the GMWB option which calculates an anniversary value benefit base as your account value increases. You can withdraw a maximum percentage of your base benefit each year until the benefit amount has been redeemed. The GMWB protects you against possible market downturns but still allows you to capture potential market gains.

Important Notice about Purchasing a VALIC Annuity From Us

To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Annuities and insurance products are offered by The Variable Annuity Life Insurance Company (VALIC), AIG Annuity Insurance Company, AIG-affiliated insurance companies or other approved companies. Each underwriting company is financially responsible for its own insurance products.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.