Our Professional Opinion on the Symetra Stride Annuity
We would shop other annuities before choosing Symetra Stride. A 10-year surrender period is a long commitment when the index cap can change after each interest term, and the ordinary free withdrawal is only 7% after the first year. Those restrictions make it a tough sell for pure accumulation when shorter contracts or stronger withdrawal allowances are available.
The optional lifetime withdrawal benefit makes Stride more interesting for someone who wants income later. Its guaranteed roll-up can build an income calculation while you wait, but the rider has a fee that comes out of your actual account. We would compare the guaranteed lifetime payment, the cost and the money remaining for your family before recommending it.
We think Symetra Life Insurance Company is a good insurance company. Its A (Excellent) financial strength rating from AM Best is above our A− minimum. A good insurer matters, but it does not make Stride’s 10-year commitment or smaller withdrawal allowance disappear.
For guaranteed income, compare Stride with other guaranteed lifetime withdrawal benefits using the same deposit, age, income start date and one or two covered lives. A bigger benefit base alone does not mean a bigger paycheck.
What We Like
- Guaranteed income is available. The optional rider can pay covered lifetime withdrawals even if the contract value reaches zero, subject to its rules.
- The income calculation can grow while you wait. The rider uses a compound roll-up during the eligible deferral period, rather than relying entirely on index returns.
- The S&P 500 is an option. We prefer having a familiar traditional index instead of being forced into a complicated custom index.
- A beneficiary receives a death benefit. The contract provides a benefit before annuitization even if lifetime withdrawals have not started.
What We Don’t Like
- Ten years is a long time. You can face a surrender charge and market value adjustment if you take too much out early.
- The free withdrawal is smaller than many competitors. It is generally 7% after the first year, with no ordinary free withdrawal in year one.
- The cap can change during your commitment. An attractive first-year S&P 500 cap is not locked for all 10 years.
- The income rider costs money. Its charge is based on the benefit base and deducted from the actual account, which can reduce the money left for other needs.
- Excess withdrawals can damage future income. Taking more than the rider permits can reduce the guaranteed amount.
Symetra Stride Annuity Overview
Symetra Stride is a single-deposit fixed indexed annuity that can be purchased with or without the optional Signature Withdrawal Benefit. Interest can be linked to an index or credited to a fixed account. The rider adds guaranteed lifetime withdrawals for an additional cost.
- Minimum deposit: $25,000.
- Surrender period: 10 years.
- Index choices: S&P 500 and other available index options, with one- and two-year interest terms.
- Fixed account: A declared interest rate for its term, with renewal rates subject to change.
- Free withdrawals: Generally up to 7% of contract value each year after the first year before lifetime withdrawals begin.
- Lifetime income: Optional Signature Withdrawal Benefit for an additional charge, subject to eligibility and state availability.
- Early withdrawals: Surrender charges and a market value adjustment may apply.
How Stride Earns Interest
Stride offers an annual point-to-point S&P 500 option. We like getting a fresh opportunity to earn and lock in interest each year. Some choices use a cap, which limits credited interest; others use a participation rate, which determines the share of index growth used in the calculation. The S&P 500 price index used for crediting does not include dividends.
The S&P 500 is not the only option. Stride also offers index strategies designed to manage volatility, and some interest terms last two years. A larger participation rate on a volatility-controlled index does not automatically mean a larger return than a lower participation rate on the S&P 500. Compare the index and formula together.
The cap or participation rate is declared for the selected interest term and can change at renewal, subject to contract minimums. The initial offer is not locked for the entire 10-year surrender period. We prefer a competitive S&P 500 strategy with a cap or participation rate guaranteed for the whole commitment when available. Compare other indexed annuity strategies before deciding.
An index decline does not itself reduce the indexed account value, but an interest term can earn zero. Rider charges, withdrawals and early-exit adjustments can still reduce your account or the amount you receive. If you want a predictable interest rate for a set period instead, compare guaranteed fixed annuity rates for a similar time horizon.
Signature Withdrawal Benefit: Guaranteed Lifetime Income
Signature Withdrawal Benefit is an optional income rider elected when you buy Stride. It tracks a benefit base that is separate from your contract value. The benefit base is used to calculate your maximum lifetime withdrawal; it is not a cash balance you can surrender or automatically leave to your family.
The benefit base grows through a compound roll-up for up to 10 years while you defer withdrawals. An applicable withdrawal percentage is then used to determine the maximum lifetime amount. The rider is available to eligible buyers age 50 or older at purchase. The actual guaranteed amount depends on the contract terms, your age, the covered person or people, and when withdrawals begin. Request a personalized guaranteed income illustration rather than treating the roll-up as interest earned on your deposit.
Lifetime withdrawals can begin after the first contract year. If you follow the rider’s rules, they can continue even after the contract value reaches zero. Taking more than the allowed amount can reduce future guaranteed income. Ask how the single-life and joint-life options affect the actual payment, and whether your spouse is covered; continuing the contract after death and joint lifetime income are different things.
We like a contractual roll-up for someone who plans to wait for income because it does not depend on an assumed index return. But the roll-up is only one part of the calculation. If another strong insurer guarantees a higher payment for the same circumstances and offers acceptable costs and access, we would consider that alternative first.
What Does the Income Rider Cost?
The rider charge is calculated using the benefit base and deducted annually from your contract value. That distinction matters: a growing benefit base can cause the dollar amount of the charge to rise, even if the charge percentage stays the same. The charge percentage can change after the fifth contract year, up to a maximum of 2.5% under the rider.
The rider fee can reduce the actual account even in a year when an index credits no interest. If you do not need lifetime income, paying an ongoing charge for it is a lousy trade. You may cancel the rider after five years, but its guarantees end, prior charges are not refunded, and you cannot add the rider back. Ask for the initial and maximum fee before choosing it.
Withdrawals, Surrender Charges and the MVA
There is no ordinary free withdrawal during the first contract year. After that, you can generally withdraw up to 7% of the contract value each year without a surrender charge or market value adjustment, before taking lifetime withdrawals under the rider. Once lifetime withdrawals begin, the rider’s maximum withdrawal rules apply; do not assume the 7% is available on top of the guaranteed payment.
If you take too much out during the 10-year withdrawal charge period, a surrender charge and MVA may apply. Outside California, the charge schedule is 9%, 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, and 1% in years one through ten. California uses a different schedule and does not have an MVA. Elsewhere, the MVA can increase or decrease your payout; a negative adjustment can make an early exit more expensive.
Money withdrawn from an indexed account before the end of its interest term does not earn interest for that term. That can matter even when the withdrawal is free of surrender charges. Keep emergency money somewhere you can access without these restrictions.
Required Minimum Distributions and Health Waivers
For eligible retirement accounts, the rider provides special treatment when a required minimum distribution exceeds the rider’s maximum: the amount needed to satisfy the RMD does not cause the usual proportional reduction to the maximum. Ask Symetra to calculate the withdrawal under your contract’s rules before taking it.
Qualifying hospitalization or nursing-home confinement of at least 30 consecutive days may waive withdrawal charges and the MVA. A terminal illness diagnosed after issue may also qualify after the first contract year. The conditions and availability vary by state. A waiver can help with access, but it is not a replacement for long-term care insurance.
What Happens When You Die?
Before annuitization, the death benefit generally pays the greater of the contract value or cash surrender value to the named beneficiaries. The benefit base used to calculate lifetime income is not automatically the amount your family receives. Withdrawals and rider fees can reduce the actual account remaining for them.
Ask whether an eligible spouse can use spousal continuation and how it affects any rider before assuming the spouse can continue the contract or its income guarantee. Beneficiary designations and the applicable contract rules matter.
What We Recommend
For accumulation alone, we would generally compare shorter contracts with better access and a competitive S&P 500 option before accepting Stride’s 10-year surrender period and 7% allowance. If the goal is guaranteed income, Stride deserves consideration only when its actual guaranteed payment, rider cost and remaining account value compare well with other suitable income annuities.
We can help you compare the guaranteed income, access to your money and what may be left to your family. Contact The Annuity Expert for free annuity quotes and a personalized comparison.
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