GE Financial Launches Innovative Variable Annuity for Lifetime Retirement Income

GE Financial, the insurance and investment division of GE Capital Services, has introduced the GE Retirement Answer, a variable annuity product designed to provide guaranteed monthly income payments for life starting at a selected date at least ten years in the future.

This product combines features of both defined benefit and defined contribution retirement plans, offering a guaranteed minimum income with the potential for increased returns tied to investment performance. Customers work with financial professionals to set their contributions, either monthly or lump sum, which are then invested in a diversified portfolio managed by the same team that oversees GE's pension plan.

This retirement solution addresses prevalent challenges in the U.S. retirement landscape, where a significant percentage of workers lack access to 401(k) plans or employer pension vesting, and many find retirement savings complex or unattainable. Research commissioned by GE Financial highlights the gap in retirement preparedness, with many Americans saving little to nothing for retirement and relying on uncertain future events for funding.

The GE Retirement Answer product aims to simplify saving by making it independent of employer status or income level, focusing solely on the commitment to save with the help of financial advisors. Currently, 30 major financial firms have exclusive agreements to sell the GE Retirement Answer, with broader availability planned.

The product includes riders addressing contingencies such as unemployment, disability, and death to support ongoing contributions and secure income streams. Fees include an annual 1.50% asset-based charge plus a portfolio management fee. Variable annuities have surrender charges and tax implications, including penalties for early withdrawal before age 59½, which may reduce benefits. GE Life & Annuity Assurance Company underwrites the product, and guarantees depend on the insurer's claims-paying ability. This innovative retirement annuity product reflects industry efforts to create personal, portable, and stable retirement income solutions within a changing employment and demographic environment.