Last Updated on February 15, 2024 by Ben
Retirement is a time for reflection and relaxation, but it can also be a time of worry. Will your loved ones have adequate money to live comfortably when you’re gone? AgeUp is an annuity that offers you a profit boost if you live into your 90s.
Overview of AgeUp
More and more people may live to be 90 (or even older) – but this presents some long-term financial challenges. Like, the U.S. Government Accountability Office found that over half of Americans have no retirement savings.
When people retire, they might not have enough money to cover their expenses. Social Security does a good job, but this doesn’t always happen. AgeUp annuity can fill the gap.
What is AgeUp?
AgeUp is a new type of annuity. It helps people of all ages but is especially good for people who are older than 90 years old. AgeUp has a guaranteed income stream that will be for the benefit of your loved ones.
The annuity may be a budget-friendly and safe way to help relatives enjoy the latter portion of their retirement. It has monthly payments that are customizable and also a generous death benefit.
With AgeUp, you can give your loved ones financial protection in their golden years while avoiding some of the hefty fees and minimum payment requirements that give annuities a bad rap. Keep reading our full AgeUp review to learn more about how these deferred income annuities work.
AgeUp helps you give your loved ones financial protection while avoiding a bad rap by charging low fees and minimum payment requirements.
Features
AgeUp is an annuity that guarantees a succession of secure monthly funds for your parents (or loved ones) coming into their nineties. It’s worth noting. This annuity should be used to supplement retirement income rather than replaced.
AgeUp monthly contributions start at $25 per month, making it much more affordable than other annuities, which often require an upfront payment.
AgeUp has two options. One option is a death benefit, and the other option is lifetime income.
- The death benefit option. This type of retirement account pays out a smaller amount each month, but you will get back the money (fewer fees) if your parents passed before they are old enough for the payout.
- The lifetime income option This plan pays out a higher amount each month, but if your parent passes before the age you selected for the payout, then you will not get that money back.
Once you choose between a death benefit or lifetime income, you can’t change your decision. But when it comes to your monthly premiums, you can increase them, decrease them, or pause them.
Coverage Costs and Fees
Your monthly payments will determine how much you have saved up when it’s time to start receiving your annuity contract. The cost payments range from $25-$250 with AgeUp and vary depending on which one of their many plans suits your needs best for retirement savings.
- The Death Before Payout Age Option also affects the cost of insurance.
- This is a warrant that the annuity will pay out if your loved one does not reach age 91.
- This is insurance that protects the money you have put into your annuity.
How Does AgeUp Work?
AgeUp helps fund parents by converting small monthly payments into larger monthly payouts once they reach a selected age, between 91 and 100.
First, you choose a monthly payment. That can be as low as $25. The payment buys a small slice of future income each time you make a monthly payment.
You can choose when you want your payouts to start – this is known as the trigger age. If you die before the trigger age or your parent passes before then, it could help provide funds for final expenses and other costs.
You can select from two options at purchase. One is a life annuity. If you or your parents pass before the payout age, then all of the money will be given back to you. But monthly payments would be lower for that option.
With the second option, you will get higher payouts. If you or your parents passed away before the payout age, you wouldn’t get back any of what was paid in.
AgeUp is a life deferred annuity bought by those ages 21 to 75 for their loved ones who are now between the ages of 50 and 75 after they turn 90 years old.
Your recipient will be eligible for monthly supplemental income payments from this annuity depending on how much was paid into it at inception, over what time period you wanted them to have access.
Each payment you make to the annuity contract is guaranteed future income. Even if you stop paying into the annuity contract, your payments are still there.
AgeUp Pros and Cons
Pros
- Provides guaranteed income for life
- Choice of payout age
- Customizable monthly premium
- Death benefit available
- Issued by MassMutual
- A feasible solution to people outliving their retirement savings
- AgeUp is backed by 160+ years of experience from a strong insurance company––MassMutual.
- A Paid-up annuity means that even if the payments stop, you will still get money.
Cons
- New, untested product
- Not yet available in all 50 states
- Can’t buy for oneself
- Restricted information on the potential for price changes
- Can’t purchase a contract for more than one person
Should You Invest in AgeUp?
AgeUp is designed to provide a guaranteed income stream for seniors over the age of 90 years old. The annuity can offer some protection during your senior years, from running out of money and providing funds if you need expensive care in the future.
For many people, this will be a peace-of-mind purchase. They want it for their family and friends. You can buy it when you are young, and then you have money later in life.
Here are two potential downsides to this: the new, untested product and the company behind it.
It’s good that MassMutual backs this product. What if the company is not around in 20 or 30 years? How about any fees or costs if AgeUp collapses? It will take at least 15 years to see any returns.
Think about the pros and cons of buying this. It might be good for you, but it’s not for everyone.
Requirements
AgeUp is only available for U.S. citizens or permanent residents who live in certain states. There are currently 35, but more will be added in 2020.AgeUp has the following age limitation for who can buy an annuity contract and who can receive proceeds from that contract.
- Purchaser (age 21 to 75)
- Annuitant (age 50 to 75)
AgeUp is an annuity that provides a guaranteed lifelong income even after you are over 90 years old.
This contract has payments that will continue until 13 months before the person is ready to start receiving them.
AgeUp recommends their annuity for people who are in reasonably good health and are worried about outliving their money. AgeUp knows that most people live to be 90 or older, so they recommend this special kind of annuity.
Alternatives
Annuity Gator
www.annuitygator.com
Star Rating
Annuity Gator does more than just provide the proper use of annuities. They also help Americans with retirement planning. Their aim is to provide customers like you who need guidance or information about what kind of product would be best suited specifically for them and give sound advice when considering which type might work out most effectively given personally.
Annuity Gator helps clients research annuities and find the perfect annuity to suit their needs.
Pros
- 100+ free annuity reviews online
- Unbiased, transparent advice
- Free, virtual annuity consultations
Cons
- Annuity commission rates not published online
- No online reputation outside of the Annuity Gator website
Blueprint Income
www.blueprintincome.com
Star Rating
Blueprint Income is a company that provides annuity products for retirement. Unlike many other insurance providers, Blueprint offers low-cost options with high-quality coverage in personal pension plans.
Blueprint Income wants to provide a secure retirement for its clients. If you are at least 20 years old and interested in building your own personal pension, Blueprint can help with that.
Pros
- Inexpensive payments for Personal Pension
- The latest technology finds the right annuity
- Reach a representative by email, phone, or online chat
Cons
- When you retire, the annuity has to be 40 years or less.
Fidelity
www.fidelity.com
Star Rating
Fidelity is one of the best brokerages. They offer no commissions on stock, ETF, or options trades and a selection of no-expense-ratio index funds to choose from.
Fidelity is the best broker for all your investment needs with trading commissions of $0, a selection of more than 3,400 no-transaction-fee mutual funds, and top-notch research tools. It’s also known for its zero-fee index funds and strong customer service reputation, which are just icing on the cake.
Pros
- Commission-free stock, ETF, and options trades.
- Strong customer service.
- Large selection of research providers.
- Highly rated mobile app.
- Expense-ratio-free index funds.
Cons
- Relatively high broker-assisted trade fee.
Conclusion
An annuity provides a stable source of income that will not fluctuate like your 401(k), which invests in the stock market. If you want to be sure about where your money is going, an annuity may provide peace of mind as its low premiums, and low minimum payment requirements could make AgeUp one of your best choices.
The annuity market can be confusing, and it’s important to understand all of the fees before purchasing. Make sure you compare the fee structure with other products available on the market so that you get a fair deal.