MetLife has launched its Guaranteed Income Builder deferred income annuity as a qualifying longevity annuity contract (QLAC) for qualified individual retirement accounts.
Guaranteed Income Builder offers a pension-like stream of income for life, providing money for retirees even after their retirement.
The customers have the flexibility to defer a portion of their required minimum distributions (RMDs) from their qualified IRA to a later date, by using Guaranteed Income Builder as a QLAC.
MetLife Retail Retirement & Wealth Solutions executive vice-president Elizabeth Forget said: "In 2016, the first of the retired Baby Boomers are set to begin taking their RMDs.
"Even though RMD rules require that individuals begin taking distributions from IRAs once they reach age 70½, not everyone will need these funds at that stage in their life."
Clients can commence income payments at a chosen start date that can be as late as 85 years and maximum amount, which can be used for a QLAC is the lesser of 25% of the individual’s IRA balance or $125,000.
The company launched Retirement Income Insurance QLAC product for the institutional market in May this year.