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Funding Your Retirement


Today's uncertain markets have many Americans asking: Will my personal investments provide enough income to meet my lifestyle needs? Can my retirement income keep up with rising costs? Will my assets provide a predictable paycheck that I can count on for the rest of my life?  


Three important steps  

To help make sure you've addressed these priorities in your long-term retirement strategy, work with your  financial advisor to: 


Step 1: Determine your number

How much money you will need during retirement? Most experts agree you'll need between 70% to 90%

of your current income to maintain your lifestyle. 1 Determining how much to spend each year however, is one of the more challenging questions you'll face. Set the rate too low and you might cheat yourself; withdraw too much, and you may outlive your money.


Consider the following hypothetical illustration, which assumes a married couple, age 50, with an annual household income of $150,000 and a plan to retire in 15 years. Using these assumptions, they would have to save at least $4.1 million in order to provide enough income to maintain their current lifestyle in retirement. 


 Cost of Retirement


Step 2: Choose investments that can help your income keep up with rising costs 

With as many as 30 additional years of living costs to fund, it's important to invest for growth. A retirement portfolio that is too conservative may not be able to generate enough after-tax returns to beat rising costs. That's why it's important to look for investments that feature top money managers, asset allocation strategies and the global vision to keep up with changing market conditions and opportunities.


Step 3: Develop a lifetime income strategy 

To help secure the lifetime income they need, many discerning investors are turning to variable annuities for a portion of their retirement portfolio. Variable annuities combine growth potential, risk protection features and innovative income options. Additionally, a variable annuity can help you to:


  • Maintain your lifestyle with rising income to help keep up with rising costs

  • Participate in market gains while protecting your income from market downturns

  • Ensure you'll never outlive your money with income that lasts for as long as you live   


Talk to your financial advisor to learn more about the growth and income protection benefits available to you through a variable annuity. 


Annuities are designed for long-term retirement investing. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. Early withdrawals may be subject to withdrawal charges. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested.


M4585B3 (05/08)______________________________________________________________________________________


1AON/Consulting/Georgia State University 2004Retirement Income Replacement Ratio StudyTM

2Source: Employee Benefit Research Institute 2007, "How are New Retirees Doing Financially in Retirement?"



Annuities are designed for long-term retirement investing. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Tax-qualified plans, such as an IRA, 401(k), etc., are tax-deferred (and subject to required minimum distributions) regardless of whether or not they are funded with an annuity.

Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained from your financial advisor or by calling 1-800-445-7862. Please read the prospectus carefully before investing.

This material was prepared to support the marketing of the SunAmerica Variable Annuities. Please keep in mind that American General Life Insurance Company (American General Life), SunAmerica, and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax statements made in this material.

Variable annuities are issued by American General Life Insurance Company (American General Life), except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). Products are marketed by SunAmerica, The Retirement Specialist. All products may not be available in all states. The purchase of a variable annuity is not required for, and is not a term of, the provision of any banking service or activity.

Distributed by AIG Capital Services, Inc., 21650 Oxnard St., Suite 750, Woodland Hills, CA 91367-4997,






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