Independent Review of the MassMutual RetireEase Immediate Fixed Income Annuity
What’s Covered In This Review
In this annuity review, we will be covering the following details on the MassMutual RetireEase Immediate Fixed Income Annuity product:
- Product type
- Current rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you’ve been seriously thinking about purchasing an annuity because you want to assure yourself of long-lasting retirement income in the future, then the MassMutual RetireEase Immediate Fixed Income annuity could be a good option for you.
But, prior to going out and signing up for this product right now, it is recommended that you first get a more in-depth understanding of how the annuity works – and how it may or may not work with your specific financial goals (both short and long-term) in mind.
Today, given the longer life expectancy we’re experiencing, one of the biggest concerns on the minds of retirees is that of outliving their money. Gone are the days of the defined benefit pension plan (for most people), so make sure that you have an ongoing stream of income that will last throughout retirement.
An immediate fixed income annuity can help with that, as these products are able to create an income stream that is guaranteed for life. Because of that, these types of annuities are being included more and more as a part of the “three-legged stool” in retirees’ diversified income plans. These legs include 1) Social Security and Pensions (if applicable), 2) Funds from an Investment Portfolio, and 3) Fixed Annuities.
But even though this can sound like an answer to your problem of creating a reliable income stream, it is important to keep in mind that not all annuities are alike. In fact, not all immediate income annuities are the same – so it is essential that you know how they work. This, in turn, can oftentimes require reading over the annuity’s “fine print” – which can sometimes feel about as exciting as getting a root canal!
In addition to that, when you are you’re in the process of researching the pros and cons about annuities, it can be a bit of a challenge to find all of the pertinent details that you need. This is because the positive points about annuities can easily be found in brochures and other marketing materials, while the drawbacks are oftentimes hidden in a myriad of very small type.
This is where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information That You Can Trust
If you’ve never been to our website before, we would like to thank you for stopping by and visiting AnnuityGator.com. We are a team of experienced financial pros who are focused primarily on offering the most comprehensive – and unbiased – annuity reviews on the Internet. We have been doing this for quite a while now – far longer than our competitors – and because of that, we’ve come to be known as a highly trusted source of annuity information.
You may be on our website right now as a result of an annuity seminar that you attended where, in return for a lunch or dinner, the presenter provided you with a lot of information about the MassMutual RetireEase, or some other similar product. You may also be approaching retirement, and are seeking various guarantees for your money, such as an income stream that you can count on for an indefinite period of time.
In your quest for more information about annuities online, you may have run across some highly conflicting information about these products. This isn’t surprising, as there are lots of annuities out there, along with a wide range of opinions about them.
The good news is that if you are here to gather more details about the RetireEase annuity from MassMutual, you are definitely in the right place. We do need to warn you, though, that we aren’t going to paint a rosy picture that focuses only on the positives – which is what many commissioned salespeople will do.
Rather, we will give you the good, the bad, and even the ugly. That’s because we believe that knowing the whole picture is really the only way that you can make a well-informed decision about whether or not to move forward with this product.
So, if you’re ready to begin, let’s go ahead and dive in!
MassMutual RetireEase Immediate Fixed Income Annuity at a Glance
|Type of Product||Immediate Fixed Income Annuity|
|Ratings||AA+ (Very Strong)|
|Phone Number||(800) 272-2216|
Opening Thoughts on the MassMutual Retiree Ease Annuity
Because an annuity’s guaranteed are really only as strong as the insurance company that provides them, you need to consider the strength of the company that you select, and its anticipated ability to meet its future obligations.
In the case of MassMutual, this company has been in existence since 1851, so it’s definitely got staying power on its side. As of September 30, 2017, the company had in excess of $237.3 billion in total assets, with more than $16 billion of that as surplus – so it is certainly able to pay out its policyholder claims. For the first three quarters of 2017, MassMutual had taken in more than $15 billion in premiums and annuity considerations for life and accident and health contracts.
MassMutual is also highly rated by the insurer rating agencies, receiving an A++ (Superior) from A.M. Best Company, and an AA+ (Very Strong) from Standard & Poor’s. The company has also consistently paid out dividends to qualifying policyholders for more than a century.
Given the decline in defined benefit pension plan offerings over the past few years, it is now up to individuals – not their employers – to make sure that there is enough money coming in each month to pay the bills, once the employer paycheck stops.
One way to do that is through an immediate fixed income annuity like the MassMutual RetireEase. But before plunking down what may be a significant percentage of your retirement savings, it is absolutely essential to know what to anticipate.
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Mass Mutual has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For more details on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How MassMutual Describes the RetireEase Immediate Fixed Income Annuity
MassMutual describes the RetireEase as a single premium immediate fixed annuity that offers a way to add a source of guaranteed income to the predictable portion of your retirement portfolio.
This financial vehicle can provide you with a secure source of guaranteed income that can in turn help to take some of the financial uncertainty out of retirement. One way that it does so by supplementing Social Security benefits (and pension benefits, if applicable) and filling in an income “gap” that you may have.
Just some of the key benefits that RetireEase offers include:
- Guaranteed income – this can be for just you, or for you and your spouse
- Predictability – based on your choices, you’ll know exactly when to expect your income
- Tax efficiency – If the money you deposit into the RetireEase annuity has already been taxed, then you can receive your income from the annuity tax-free
- Flexibility – Here, you can add an inflation protection feature, adjust how long you want to continue receiving income, and/or select a benefit that provides for your heirs
For all of the intricate details, you can check out the product brochure and fact sheet HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
If you’re like most people, you love guaranteed – and this is particularly the case when it comes to your money. And, you want to make sure that you can count on a regular stream of income in retirement so that you can enjoy family, travel, and/or any other element during this time in your life.
With that in mind, it is likely that an insurance or financial advisor who is presenting the RetireEase annuity from MassMutual to you will key in on the fact that you (and another individual) can secure an incoming cash flow.
By taking the money that you have saved over time, for instance, that which is in a 401(k) plan, you can also begin to take your income right away. In this case, you could just step right from the world of employment to the world of retirement, without missing a regular “paycheck.”
But while this might sound all well and good, keep in mind that there are some possible “tradeoffs” that you’ll need to make if you opt to go forward with the purchase of this annuity. For example one of these is that, because this is an immediate annuity, you will need to convert the funds over into income within the first 12 months of purchase – which means that you can miss out on long-term tax-deferred or tax-free income growth here.
Also, if you want access to your money, for instance, for an emergency, you could be hit with a surrender charge. This can substantially reduce the amount that you end up putting back into your pocket.
Are there Any Fees on the RetireEase Immediate Fixed Income Annuity from MassMutual?
As mentioned above, MassMutual will hit you with a surrender charge if you want access to your funds within the first nine full years of purchasing the contract. These are as follows:
MassMutual RetireEase Surrender Charges
The Annuity Gator’s End Take on the MassMutual RetireEase Immediate Fixed Income Annuity
Where it works the best:
While immediate annuities are definitely not the ideal solution for everyone’s needs, this product could fare well for you if you are seeking:
- A reliable income stream right away (or one that starts within 12 months after purchasing the annuity)
- A place to move funds from an IRA, 401(k), or other types of retirement plans so that you can convert it from a lump sum of savings into income
- A solution to the worry about running out of income in retirement
Where it works the worst:
Even though the RetireEase offers some nice benefits, this particular annuity may not be for you if you:
- Have less than $10,000 to deposit
- Feel that you may need some (or all) of your funds for other needs
- Do not plan to use the annuity for income
If you’ve been considering the purchase of an annuity – or any financial vehicle, for that matter – it is always important that you consider several factors prior to moving ahead. That way, you will have a much better idea as to whether or not the product is right for you and your specific needs.
If a fixed annuity seems to be the best alternative for you, however, you can be assured that it will provide you with the protection of your principal, as well as a guaranteed lifetime income in the future – which is something that other financial vehicles just cannot do.
As it relates to the RetireEase immediate fixed income annuity from MassMutual, then, there are definitely some very nice benefits. However, this annuity could also fall a bit short – and quite frankly, there may be a better alternative for you, especially if you are in search of a higher return.
So, if you are still not 100% certain that the RetireEase annuity from MassMutual is the best one for you, then feel free to reach out to us directly via our secure online contact form here and we will test the annuity, based on your particular circumstances. That way, you will have a better idea of what you may anticipate.
Any Additional Questions? Did You Notice Any Mistakes?
We realize that this annuity review was a tad bit lengthy. Given that, we would like to thank you for sticking with us to the end. In offering our reviews of annuities, however, we would much rather provide our website visitors with “too much” detail, rather than not enough. So, if you felt that this annuity review was helpful, then please feel free to forward it and share it with others who you think may also find it beneficial.
We also realize that the available information with regard to annuity products can – and often does – change over time. With that in mind, if you happened to run across any details in this annuity review that needs to be corrected or updated, please let us know and we will be happy to get them corrected immediately.
Also, if this review has caused you to be more confused about how the MassMutual RetireEase Immediate Fixed Income Annuity, and/or if reading this review has prompted any additional questions or concerns, then please do let us know that, too.
Are there any other annuities that you’d like to see reviewed?
No problem! Just let us know the name (or names, if there’s more than just one) of the products that you are interested in, and our team of annuity “geeks” will get on it. So, be sure to check back often, as we are always adding new annuity information to our website.
The Annuity Gator