What is Symetra Income Edge?
Symetra Income Edge is a single-premium fixed indexed annuity with a guaranteed lifetime withdrawal benefit rider.
- Single-premium: You purchase the annuity with a lump sum.
- Fixed indexed: “Fixed indexed” describes how the annuity’s interest is calculated. This interest can be a fixed rate or based on the performance of a market index. And if you choose a market index, your money is not actually invested in the market, so you have no market risk.
- Annuity: An annuity is a contract between you and an insurance company. The idea is pretty simple. You put money in. It accumulates interest. It pays you back later. “Paying you back” can happen in several ways. One option is to take money out as a monthly payment for the rest of your life.
- Guaranteed lifetime withdrawal benefit rider: This benefit provides guaranteed income for life in the form of regular withdrawals from your contract. It gives you predictable, reliable income that continues even if your annuity is withdrawn to $0.
Symetra Income Edge Annuity is designed to help ease your retirement worries.
Will I run out of money?
Symetra’s Income Edge can guarantee steady income payments for life, even if there is no money left in your annuity. This is the key benefit of the withdrawal benefit.
What if I need access to my money sooner than expected?
You can access any remaining contract value if you have an unexpected need, but this will reduce your future maximum withdrawal amount and charges may apply.
- During the initial contract period (the “surrender charge” period), you can withdraw up to 10% of the money in your contract every year free of charge—unless you have started taking lifetime income payments.
- You can take out more than 10% during the surrender charge period, but the amount you take out may be subject to a market value adjustment (MVA) and a fee called a “surrender charge.”
- After the surrender charge period, surrender charges and MVAs no longer apply. Symetra Income Edge is designed to help ease your retirement worries.
Can my money continue to grow?
- Any interest you earn is credited each year, and it can continue to grow through compounding.
- Your money grows tax-deferred (it’s not taxed until you take it out).
- You can choose a lifetime income option that may increase your payments each year.
- If the market index you choose goes up, your indexed account can be credited interest up to a “cap”—the top percentage you can earn in any given year.
- Research today’s annuity rates to find the best plan for your retirement.
Can I lose money?
- Because you’re not actually invested in the market, you will never lose money due to market declines.
- You can surrender your contract at any time and receive the current value, subject to an MVA and surrender charge, and minus any previous charges or withdrawals.
- If you die, your beneficiaries will receive any remaining money per your contract.
I don’t want any surprises. What else should I know?
- You have a “free-look period,” which means you can cancel your contract and receive a full refund within 30 days of the contract receipt.
- Caps and fixed interest rates are reset annually, so they may vary from year to year.
- There is an annual charge for the withdrawal benefit. The fee is a percentage of the money in your annuity and will not change for the life of your contract.
- You can cancel the withdrawal benefit after five years. If you do, the benefits it provides go away for good and charges will not be refunded.
- There may be years where you earn no interest if the index you choose doesn’t increase or it declines.
- Federal income taxes may apply to withdrawals. There could be an additional federal tax of 10% if you take money out and you’re younger than age 59½. You should consult with an attorney or tax professional before taking any withdrawals.
Multiple ways to access your money
Free annual withdrawals
Until you begin taking lifetime withdrawals, you can withdraw up to 10% of your contract value each contract year without paying surrender charges or market value adjustments. If you withdraw more than 10% annually during the surrender charge period, a surrender charge and MVA will apply on the amount over 10%. Any amounts withdrawn from an indexed account before the end of the interest term will not receive interest for that term (indexed interest is only credited at the end of each annual interest term). The 10% penalty-free amount is no longer available after lifetime withdrawals begin.
Nursing Home and Hospitalization Waiver
We’ll waive your surrender charges and any MVAs if you’re confined to a nursing home or hospital for at least 30 consecutive days and for up to 90 days after your release. Additional requirements are explained in the annuity contract. This waiver is not available in all states. Annuitization Anytime after the first contract year, you can convert all or part of your contract value into an income stream that pays you over a specific period of time or for your lifetime. This will terminate the withdrawal benefit, unless you already terminated it prior to annuitizing.
Upon your death, your beneficiaries will receive the greatest of the contract value (which does not reflect any current surrender charge or MVA), the cash surrender value (reflecting any applicable surrender charge and MVA), or your original purchase payment (adjusted for any withdrawals). If the withdrawal benefit has been terminated, the death benefit will be the greater of the cash surrender value or contract value.