Скачать или смотреть 🚨 Alert: Major Reduction in Annuity Income Rider Factors – What It Means for Retirement Income.

🚨 Alert: Major Reduction in Annuity Income Rider Factors – What It Means for Retirement Income
In a recent video update from Jeff Affronti of FSD Financial Services, annuity experts are sounding the alarm on a significant decrease in lifetime income rider factors for certain fixed index annuities. Posted on X (formerly Twitter) under the handle @MrFixedAnnuity, the video highlights a 10.69% drop in projected annual income payouts, effective as of October 10, 2025. This change could impact retirees and financial planners relying on these products for guarantee
Understanding Income Riders in Annuities
For those new to annuities, an income rider—often referred to as a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider—is an optional feature added to fixed or fixed index annuities. It provides a guaranteed annual withdrawal amount for life, regardless of market performance or account balance depletion. These riders calculate payouts based on "factors" that depend on factors like the annuitant's age, deferral period, and whether it's a single or joint life payout.
In simple terms, the higher the factor, the more income you can withdraw annually from your annuity's benefit base. These factors are set by the insurance company and can change over time based on interest rates, longevity assumptions, and economic conditions. The video focuses on reductions to these factors, which directly translate to lower lifetime income for new purchasers.
The Details of the Decrease
Affronti's video showcases a real-world example to illustrate the impact. Using a hypothetical scenario (likely based on a $400,000 premium after a 5-year deferral period), the previous annual income projection of $41,920 has now dropped to $37,440—a stark 10.69% reduction. This isn't a minor tweak; it's a substantial cut that could mean thousands less in yearly retirement income.