New York Life Insurance Co. has launched a new type of deferred income annuity designed as a “personal pension” and targeted at consumers concerned about outliving their savings.

The company says it designed the product in response to the waning of employer-sponsored defined benefit plans, noting that a new GAO report suggests that middle-income households without traditional pensions should consider using a portion of their savings to purchase an income annuity to help fund retirement and delay Social Security if possible. As example of how the Guaranteed Future Income Annuity works, a 54-year-old man without a pension can invest $10,000 per year for ten years.  Starting at age 65, he will receive $9,500 per year for life, the company says.

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