Premiums from New York Life’s new Guaranteed Future Income Annuity have exceeded $500 million since its July 2011 introduction.

Between the initial premium date and the income start date, policyholders can continue to purchase more future income by making additional premium payments, and can defer or accelerate their income start date as their personal needs change.

In non-qualified accounts and Roth IRAs, 66 percent of GFIA purchasers elect an income start date prior to age 70.5, demonstrating that the product is primarily being used to create a stream of retirement income. However, 34 percent of non-qualified purchasers elect an income start date between the age of 70.5 and 85, indicating a desire to defer income to a more advanced age. In traditional IRAs, Required Minimum Distribution rules require all purchasers to elect an income start date prior to the age of 70.5.

The core audience for the GFIA is pre-retirees between the ages of 55 and 65 who plan to retire in five to 10 years. Approximately 66 percent of purchasers are using tax qualified money to fund the GFIA, which is money they already have in IRAs or 401(k)s and had set aside for retirement funds.