Defer Retirement Income for the Later Years in Life

2 min read
Jun 24, 2024

Meet Daniel. With a family history of living a long and healthy life, he explores a solution that provides guaranteed income later in retirement. This is his story:

I recently learned some really good news about my future…people are living longer and spending 25-30 years or more in retirement. That’s more time to watch my grandson grow taller than me, travel the world and attempt to improve my mediocre pickleball skills. That’s also more time that my retirement income needs to last.

So I started to do some research. Luckily, there’s a way to help make your retirement assets last for all those extra candles on your birthday cake. The solution? A Qualifying Longevity Annuity Contract (QLAC, for short).

I learned that a QLAC is a deferred income annuity designed to provide a paycheck for life. It kicks in later in life, as late as age 85, to provide a breath of fresh air when your funds might start running low. I was glad to hear outliving my retirement didn’t have to be a concern (even with tricky market fluctuations). Now, I realize life happens and circumstances change. So, I was comforted to learn that a QLAC offers the flexibility to start monthly payments sooner in those moments where life surprises us.1

In addition, purchasing a QLAC helps reduce the amount of my retirement savings that are subject to required minimum distributions (RMD). This means it can potentially reduce taxable income.

Another added bonus? A QLAC allows me to focus on budgeting my retirement assets for the time between the start of retirement and the start of my annuity payments. This is great for me considering I’d rather focus on marking off my bucket list than constantly running the numbers of my retirement plan.

For me, a QLAC is more than a monthly paycheck for life. It’s more reason to get excited about the future. My dad lived to 93 and my mother is still active at 95. This is something that should be celebrated and not clouded by feelings of uncertainty about the future. Now I feel more comfortable to pursue an adventurous and fulfilling life knowing my nest egg is built to last.

For more information about QLACs, contact your human resources department.

Will you have enough income in retirement?

Use MetLife’s interactive tool to discover if you have a retirement income gap—the difference between your anticipated retirement income and estimated monthly expenses.

If advancing your payment to start sooner, your monthly benefit amount will be actuarially adjusted to reflect the earlier payment start date.

All guarantees are based on the claims-paying ability and financial strength of the issuing MetLife company. Group annuity contracts are issued through Metropolitan Tower Life Insurance Company (MTL) or Metropolitan Life Insurance Company (MLIC). Like most group annuity contracts, MTL and MLIC group annuities contain certain limitations, exclusions and terms for keeping them in force. MTL and MLIC annuity products may not be available in all states. Contact your MetLife representative for more information.

Any discussion of taxes is for general informational purposes only and does not purport to be complete or cover every situation. MTL and MLIC, its agents and representatives may not give legal, tax or accounting advice and this document should not be construed as such. You should confer with your qualified legal, tax and accounting advisors as appropriate.