According to the announcement, IncomeLOCK is a guaranteed minimum withdrawal benefit that locks in an annuity contract’s investment gains annually and automatically for at least 10 years. An investor’s income can automatically be “stepped up” and “locked in” every year if the contract’s investment performance exceeds previous anniversary values.
The option creates a stream of retirement income that can only increase with the market, and never decline due to market volatility, the announcement said. The new option imposes no investment restrictions on investors.
In addition, IncomeLOCK provides the flexibility to create a retirement income strategy based on income needs. For example, IncomeLOCK enables those with immediate income needs to take up to 5% of their Portfolio Director account immediately, providing them with withdrawals that can last for at least 20 years, while investors who wait to begin withdrawals can increase annual income to as much as 10% of their withdrawal benefit for 10 years or more.
VALIC guarantees the income provided by IncomeLOCK, based on claims-paying ability.
For more information, go to www.aigvalic.com .