Corebridge Financial's American Pathways suite of annuities offers solutions for both immediate and future income needs, primarily through their Deferred and Immediate Income Annuities. These products are designed to provide a predictable, guaranteed income stream, helping individuals manage longevity risk and secure their retirement.

American Pathways Deferred Income Annuity (DIA)

A Deferred Income Annuity (DIA) is a contract purchased with a lump sum (or sometimes a series of payments) that begins providing guaranteed income payments at a specified future date—the "annuitization date." This is also often referred to as longevity insurance, as it's designed to protect against outliving one's savings later in retirement.

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Key Features

• Income Deferral: The primary feature is the ability to defer income payments for a period, typically 2 to 40 years. The longer the deferral period, the higher the eventual income payment, as the funds have more time to potentially grow within the annuity contract.

• Guaranteed Lifetime Income: Once payments begin, they are guaranteed for the life of the annuitant (or joint lives, if chosen), regardless of market performance.

• Payment Options: A variety of payout options are usually available, including:

  • Life Only: Pays income for the annuitant's lifetime and stops upon death. Offers the highest periodic payment.

  • Life with Period Certain: Pays income for the annuitant's life; if the annuitant dies before a specified period (e.g., 10 or 20 years), payments continue to a beneficiary until the end of that period.

  • Joint and Survivor: Pays income until the death of the second annuitant (typically a spouse), often at a reduced rate after the first death.

• Inflation Protection (Optional): Some Corebridge DIA contracts may offer riders to increase payments over time, helping to combat the effects of inflation (e.g., a simple increase or an increase tied to the Consumer Price Index (CPI), if available).

• Premium Refund Option: An optional feature that guarantees that if the annuitant dies before receiving income payments equal to the premium paid, the remaining balance is paid to a beneficiary.

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Ideal Audience

The American Pathways DIA is best suited for individuals who:

 

• Are currently saving for retirement but want to lock in a guaranteed income stream for the far future.

• Are concerned about outliving their savings (longevity risk).

• Have a secure source of income in the near term but need a guaranteed "pension-like" income later in life (e.g., after Social Security maxes out or other assets are depleted).

American Pathways Immediate Income Annuity (SPIA)

An Immediate Income Annuity (often called a Single Premium Immediate Annuity or SPIA) is a contract purchased with a single lump sum that begins providing guaranteed income payments immediately or within one year of purchase.

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Key Features

• Immediate Income: Income payments generally start within 30 days to one year of the purchase date, providing immediate cash flow.

• Predictable Cash Flow: Offers a steady, predictable stream of income, making budgeting in retirement simpler.

• Guaranteed Payments: Payments are based on actuarial tables, interest rates at the time of purchase, and the payout option selected, and are guaranteed by the claims-paying ability of Corebridge Financial.

• Payment Options: Similar to the DIA, the SPIA offers various payout structures:

  • Life Only

  • Life with Period Certain

  • Joint and Survivor

  • Installment Refund: Guarantees that if the annuitant dies, the beneficiary receives the remaining payments until the original premium amount has been fully paid out.

• Irrevocability: Once the contract is finalized and the income period begins, the terms and payments are generally fixed and cannot be changed or surrendered for a lump sum.

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Ideal Audience

The American Pathways SPIA is best suited for individuals who:

 

• Are at or near retirement age and require immediate, reliable income to cover essential living expenses.

• Are looking to convert a portion of their accumulated savings (e.g., 401(k) rollovers, CDs, savings) into a guaranteed income stream.

• Prioritize predictability and safety of principal over potential market growth for a specific portion of their retirement funds.

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Summary Comparison

Feature

American Pathways Deferred Income Annuity (DIA)

American Pathways Immediate Income Annuity (SPIA)

Income Start

Deferred (typically 2 to 40 years after purchase)

Immediate (within 1 year of purchase)

Primary Goal

Longevity protection; securing future income

Immediate cash flow; reliable retirement income

Premium Type

Single premium (sometimes flexible)

Single premium

Typical Purchaser Age

Younger retirees or those still working

At or near retirement (60s and older)

Income Amount

Generally higher periodic payment due to longer deferral

Fixed periodic payment based on current rates/age