SunAmerica Annuity Options for Retirement Planning and Growth

SunAmerica annuities offer a range of options for retirement planning and growth. They provide a guaranteed minimum interest rate, which can help protect your savings from market volatility.

One option is the SunAmerica Variable Annuity, which allows you to invest in a variety of sub-accounts that track the performance of the stock market. This can provide potential for long-term growth.

The SunAmerica Fixed Annuity offers a fixed interest rate for a set period, typically 5-10 years. This can provide a predictable income stream in retirement.

SunAmerica annuities also offer tax-deferred growth and withdrawals, which can help reduce your tax liability in retirement.

If this caught your attention, see: Whole Life Insurance with Compound Interest

SunAmerica seems to be recovering from the financial crisis, with Fitch Ratings raising its grade from A- to A in April 2011.

Fitch analyst Julie Burke attributed this move to higher earnings, lower investment losses, and improved financial numbers. SunAmerica's operating earnings increased from $2.3 billion in 2009 to $4 billion in 2010.

A unique perspective: Sunamerica Asset Management

Moody's gave SunAmerica a rating of A2, indicating that the company is financially secure but vulnerable to future market conditions. A.M. Best rated it Aaa, or excellent, and stated that the company is in a good condition to meet its financial obligations. Standard & Poors (S&P) also gave a positive rating of A+, stating that SunAmerica has strong financial characteristics.

SunAmerica received a boost in its financial rating from Fitch Ratings, which raised its grade from A- to A in 2011.

This move was prompted by higher earnings, lower investment losses, and improved financial numbers.

Fitch analyst Julie Burke noted that SunAmerica's operating earnings had increased from $2.3 billion in 2009 to $4 billion in 2010.

However, these improved earnings do not affect the rest of AIG, as SunAmerica is still a part of it.

Moody's gave SunAmerica a rating of A2, indicating that it is financially secure but vulnerable to future market conditions.

A.M. Best rated SunAmerica Aaa, or excellent, and stated that the company is in a good condition to meet its financial obligations.

Standard & Poors (S&P) rated the insurer A+, stating that it has strong financial characteristics.

In the variable annuity business, SunAmerica's measured approach is proving that success is not about grabbing market share at any price, but about pricing appropriately for a given risk.

SunAmerica's strategy is paying off, as CEO Robert Benmosche notes that the company is now pulling ahead in the U.S. variable annuity market, thanks to a more rational pricing environment.

The company's tortoise and hare analogy is apt, as slow and steady wins the race. This approach is a stark contrast to companies like The Hartford, which recently exited the variable annuity business due to its capital-intensive and unattractive economics.

MetLife has also dialed down their variable annuity offerings in light of market volatility and unattractive return on equity levels.

Here's a brief comparison of the variable annuity business approaches of SunAmerica and its competitors:

SunAmerica's success in the variable annuity market is a testament to the importance of pricing appropriately for risk and having the stomach to turn away business that doesn't meet those standards.

The Sun America Polaris annuity is a variable annuity offered by SunAmerica, a well-established issuer. It's available for investors looking for a potentially high-growth investment.

The Polaris annuity has a strong rating from Standard & Poor's, with an A+ (Strong) rating. This suggests a relatively low risk of default.

To contact SunAmerica directly, you can call their phone number at (800) 445-7862. You can also visit their website at https://www-1000.aig.com/TridionData.do?Page_ID=579858 for more information.

The fees associated with the Polaris annuity are relatively high, with a mortality and expense risk fee of 1.37% and a distribution expense fee of 0.15%. In addition, the total annual portfolio operating expenses can range from 0.53% to 1.24% each year.

Here's a breakdown of the fees you can expect:

The Polaris annuity also has a surrender charge for the first seven years, which starts out at 7% in Year 1 and gradually decreases to 1% in Year 7.

SunAmerica annuities offer a range of options for investors, including variable annuities that allow for investment in top-rated mutual funds.

The company's Polaris variable annuity allows individual investors to choose how much of their money will be placed into equity investments, with up to 44% of the funds invested in equities.

MarketLock and MarketLock For Two are available as an additional rider on the company's Polaris and Seasons variable annuities, offering flexible investing and guarantees to generate retirement income.

Married couples with the younger spouse between the ages of 55 and 75 can elect MarketLock For Two and be guaranteed income for both their lives.

The Polaris Income Plus Daily annuity offers market participation and the ability to lock in market gains, but it still carries downside market risk.

Variable annuities can charge a number of fees, including management fees incurred by the mutual fund investments inside the annuity.

Readers also liked: Variable Annuities

Retirement planning is a crucial aspect of securing your financial future. MarketLock For Two is a feature that can help married couples overcome obstacles to a long and secure retirement.

This feature offers flexible investing, locks in market gains, and provides guarantees to generate retirement income based on the best year in the feature for as long as both spouses live. MarketLock For Two can be elected by married couples with the younger spouse between the ages of 55 and 75.

Couples who begin income after the younger spouse’s 63 birthday can take up to 5% of their benefit base for life. If they begin income after the younger spouse’s 75 birthday, they can take up to 6%. For couples who want to retire earlier, they can begin withdrawals of up to 4% of their benefit base for life whenever they want.

MarketLock For Two is available as an additional rider on AIG SunAmerica's Polaris and Seasons variable annuities. The product is available at issue for an additional annual fee of 0.40% of the benefit base prior to any withdrawal being taken and 0.80% of the benefit base after the first withdrawal is taken.