Interest Rates - AXA Equitable |
How Can My Retirement Income Keep Pace With Changing Interest Rates?
Today, it is becoming harder to accumulate sufficient assets for retirement. Longer life expectancies, the possibility of rising inflation and potential tax increases may make it imperative to have retirement income that can adjust with changing interest rates. AXA Equitable, a leading provider of financial products and services, offers a variable annuity that can help you plan for retirement by providing an option for your retirement income to keep pace with changing interest rates.
Learn more about interest rates and investing.
An Optional Benefit for Changing Interest Rates within AXA Equitable's Retirement CornerstoneSM
Retirement CornerstoneSM is a variable annuity product that features two complementary accounts within a single tax-deferred investing platform, offering a comprehensive approach to investing for retirement. The Investment Performance Account focuses on investing contributions in growth-oriented investments, helping to build assets. The Protection with Investment Performance Account offers core investment options that work in conjunction with optional guarantees, available at an additional cost, that can help ensure lifetime income for you and protect your beneficiaries. Optional features are subject to income restrictions and age limitations.
Retirement Cornerstone helps address changing interest rates by offering an optional flexible guaranteed Roll-Up Rate as part of the Guaranteed Income Benefit rider*, available at an additional fee. A Roll-Up Rate is the annual percentage increase to a living benefit rider’s “benefit base.” The benefit base is used to calculate a guaranteed minimum income (or withdrawal) amount. Retirement Cornerstone’s flexible guaranteed Roll-Up Rate allows you to benefit from a rising interest rates environment. If interest rates fall, an adjustable Roll-Up Rate would decrease. The annual guaranteed Roll-Up rate can go as high as 8%, and AXA Equitable may set a higher Roll-Up rate. The guaranteed Roll-Up rate will not go lower than 4%. The Guaranteed Income Benefit rider is issued with all eligible contracts unless the contract owner "opts out" at the time of application.
What is a variable deferred annuity?
A variable annuity is a long-term financial product designed for retirement purposes. Simply stated, a variable annuity is a contract between you and an insurance company that lets you pursue the accumulation of assets through stock (equity) and other investment portfolios, and then receive lifetime payments during the distribution phase of the contract. There are contract limitations, fees and charges associated with annuities, which include, but are not limited to, mortality and expense risk charges, sales and surrender charges, administrative fees, and charges for optional benefits.
Learn more about planning for retirement.
In the Retirement Resources section of our web site, you can learn more about wealth management and strategies to help you prevent outliving your retirement income. You’ll find a variety of retirement calculators, informative articles and answers to common questions such as:
- Should I contribute to my 401(k) plan at work?
- What role should a life insurance plan play in my retirement planning?
- Should I buy long-term care insurance?
- How much money should I save for retirement?
- Can I set up a traditional IRA?
*Guarantees are based on the claims-paying ability of AXA Equitable Life Insurance Company.
Please consider the charges, risks, expenses, and investment objectives carefully before purchasing a variable annuity. For a prospectus containing this and other information about the variable annuity, underlying investments and any applicable supplements, please contact a financial professional. Read the prospectus carefully before you invest or send money.
Important Information
Certain features available with the Retirement Cornerstone® variable annuity, including enhanced death benefits, are optional and entail an additional cost; you do not have to elect these optional features in order to purchase a Retirement Cornerstone® contract. Also, the IRS requires the owner of an IRA or Qualified Plan annuity contract to include the actuarial present value of certain optional benefits (which may include some of these Retirement Cornerstone® optional features) in the calculation of lifetime Required Minimum Distribution payments. Withdrawals from an annuity contract are taxable as ordinary income, not as capital gain and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Withdrawals may also be subject to surrender charges. Withdrawals may reduce the death benefit, living benefit and cash surrender value. For tax purposes, withdrawals will come from any gain in the contract first.
AXA Equitable may discontinue contributions and transfers among investment options or make other changes in contribution and transfer requirements and limitations. If we discontinue contributions and transfers into the Guaranteed Benefit Account, you will no longer be able to create a Benefit Base or actively increase the benefit(s).
Market Risk
This piece is not a complete description of all material provisions of the Retirement Cornerstone® variable annuity contract. The prospectus contains more complete information, including investment objectives, risks, charges, expenses, limitations and restrictions. Please read the prospectus and any applicable supplements, and consider this information carefully before purchasing a contract.
Variable annuity subaccounts fluctuate with changes in market conditions. When surrendered, the principal may be worth more or less than the original amount.
Fees and Expenses
There are fees and charges associated with the Retirement Cornerstone® contract, which include, but are not limited to, mortality and expense risk charges, sales and withdrawal charges, administrative fees, and additional charges for optional benefits. The contingent withdrawal charge declines from 7% over a seven-year period for the Series B product. Please see the prospectus for the withdrawal charge scale for other annuities in the Retirement Cornerstone® Series. Amounts in the annuity’s variable investment portfolios are subject to fluctuation in value and market risk, including loss of principal. For costs and more complete details of coverage, speak to your financial professional. Certain types of contracts, features and benefits may not be available in all jurisdictions. We offer other variable annuity contracts with different fees, charges and features. Not every contract is available through the same selling broker/dealer.
You can contact us at (212) 554-1234 to find out the availability of other contracts.
AXA Equitable Life Insurance Company, through its AXA Funds Management Group (AXA FMG), serves as investment manager of the AXA Strategic Allocation Portfolios. AXA Equitable is solely responsible for the asset allocation decisions made on behalf of each portfolio, and for the selection and allocation of assets to underlying funds.
This website was prepared to support the promotion and marketing of AXA Equitable variable annuities. AXA Equitable, its distributors and their respective representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. Please consult your financial professional as to any tax, accounting or legal statements made herein.
Call your financial professional or visit our Web site at www.axa-equitable.com. Guarantees described herein are subject to the claims-paying ability of AXA Equitable Life Insurance Company. The guarantees do not apply to the investment portfolios. Retirement Cornerstone® is a service mark of AXA Equitable Life Insurance Company, New York, NY 10104. Retirement CornerstoneSM variable annuities are issued by AXA Equitable Life Insurance Company, New York, NY 10104.
Co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC, New York, NY 10104.
AXA Equitable, AXA Advisors and AXA Distributors do not provide legal or tax advice.
Contract form #s: 2010BASE-A/B, 2010BASE-I-A/B, 2010BASE-I-A(WA) and any state variations
© 2011 AXA Equitable Life Insurance Company. All rights reserved.
1290 Avenue of the Americas, New York, NY 10104, (212) 554-1234
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