MassMutual RetireEase
Product Details
- Minimum premium of $10,000 and maximum premium of $1.5 million.
- Owner can be a person or entity, but joint ownership cannot include a nonperson entity.
- No applicable fees; payout rates vary based on age, gender and effective rates when contract issued.
- Lifetime income for 18 to 90 years old or period certain only for up to 100 years old.
Pros
- Various payout and survivor customization options to fine-tune the contract to your needs
- Inflation protection rider offered with four options for annual payout increases
- Period certain contracts offer a surrender period starting the second year, which is rare for an income annuity
Cons
- Middle-of-the-road payouts compared to competitors
- Only one optional rider is available (inflation protection)
About MassMutual RetireEase
The MassMutual RetireEase is a single premium immediate annuity meant to create a guaranteed stream of income for the life of a single individual or the joint lives of a couple.
Payout flexibility is a standout feature of this annuity, which offers cash refund, installment refund and period certain options. The period certain elections can range from 5 to 50 years with MassMutual’s approval. Joint owners can also customize their contract with payment reductions after the death of one annuitant. There are 16 different payout options available, not including the inflation protection rider, which can be added to any contract at the time of issuance.
The inflation protection rider increases payouts by 1%, 2%, 3% or 4% annually. Initial payouts start lower and will grow over time.
Another feature of the MassMutual product that separates it from the competition is the unique withdrawal options for annuities that include a period certain payout. These contracts allow the owner to make one elective withdrawal per year of at least $5,000 beginning at the second contract anniversary. Any withdrawal will reduce future benefits, but this kind of flexibility is rare with annuitized contracts.
Surrender Charge Schedule for Period Certain Contracts
| Contract year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10+ |
| N/A | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
Certain states prohibit some features of the MassMutual RetireEase annuity. Oregon does not allow contract withdrawals outside of the annuitized payout, and all states except New York bar this contract from being assigned as collateral.
This product is not meant for Medicaid eligibility and cannot be used as a Medicaid-compliant annuity. Speak with a Medicaid specialist to learn how to find an annuity for this purpose.
Read more: The Best Annuities of 2024
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Our Take on the MassMutual RetireEase
This annuity is a good choice for individuals or couples looking for a straightforward income annuity from a top carrier. It offers various income payout options, making it easy to fit into a diversified retirement income plan alongside other investments. However, this annuity may be too simple for someone looking for a sophisticated income solution with many riders or add-on features to tinker with.
The option to add inflation protection or access cash withdrawals on a period certain contract makes this annuity a flexible product for those concerned with changing income needs later in life. Consumers can also be confident in MassMutual’s financial standing and benefit-paying ability now and in the future.
Compare Products From MassMutual
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| Product |
Rate
|
Guarantee Period
|
Surrender Period
|
AM Best Rating
|
|---|---|---|---|---|
Advantage 5 Advisory |
5.40% | 5 Years | 5 Years | A++ |
|
American Freedom Aspire 3 |
4.60% | 3 Years | 3 Years | A++ |
|
American Freedom Aspire 5 |
4.80% | 5 Years | 5 Years | A++ |
|
American Freedom Aspire 7 |
4.50% | 7 Years | 7 Years | A++ |
|
American Freedom Classic 5 |
5.15% | 5 Years | 5 Years | A++ |
|
Freedom Elevate 3 |
4.85% | 3 Years | 3 Years | A++ |
|
Freedom Elevate 5 |
4.85% | 5 Years | 5 Years | A++ |
|
Freedom Elevate 5 |
4.60% | 5 Years | 5 Years | A++ |
|
Freedom Elevate 7 |
3.95% | 7 Years | 7 Years | A++ |
|
Freedom Elevate 7 |
4.45% | 7 Years | 7 Years | A++ |
About MassMutual
MassMutual, founded in 1851, is one of the oldest insurers in the US and focuses on annuities, life insurance and investment products. In 2021, it acquired Great American Life Insurance and rebranded as MassMutual Ascend. MassMutual is a leader in the industry with over $9 billion in insurance and annuity benefits paid out in 2023.
Financial Stability
MassMutual has received excellent ratings from all four rating agencies that review the financial standing of insurance and annuity companies. As a 170-year-old mutual insurance company, it has a long and stable track record serving its policyholders.
MassMutual’s Credit Ratings
| Rating Company | Credit Rating | Highest Rating Possible |
| AM Best | A++ | A++ |
| Moody’s | AA3 | AAA |
| Fitch | AA+ | AAA |
| Standard & Poor’s | AA+ | AAA |
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