MassMutual RetireEase Choice
Product Details
- Minimum premium of $10,000 and maximum of $1.5 million
- Can be owned by person or entity; joint ownership cannot include nonperson entity
- No applicable fees; payout rates vary based on age, gender and effective rates
Pros
- Numerous payout and survivor customization options to personalize future payouts to your needs
- Inflation protection rider has four options for annual payout increases
- Payment acceleration options allow owners to take three to six months of payments as a lump-sum payout advance
Cons
- Middle-of-the-road payouts compared to competitors
- Not a Medicaid-compliant annuity
About MassMutual RetireEase Choice
The MassMutual RetireEase Choice is a flexible premium deferred income annuity (DIA) meant to create future guaranteed income in retirement. Available for individual and joint ownership, this annuity can be used to plan for income that will begin more than 12 months after the final premium payment.
After the initial premium payment at issuance, owners may add supplemental premiums in payments as low as $500. The owner can adjust the annuitization date after issuance to be earlier or later (up to five years), but changes will impact the final income payout.
This product offers an optional inflation protection rider for policyholders who want payments that will grow over time. The inflation protection can offer annual payment increases of 1%, 2%, 3% or 4%.
Two important contract features differentiate the RetireEase Choice from its single premium immediate annuity counterpart, the MassMutual RetireEase annuity. Before annuitization, all contracts except the designated “no death benefit” option offer a death benefit equal to all premium payments. After annuitization, owners can choose to accelerate three to six months of payments as a single lump sum. Payments will cease until the advanced monthly payments have elapsed. This option is limited to five lifetime requests.
Similar to the MassMutual RetireEase annuity, certain annuities offer flexible withdrawal options with a surrender charge between years two and nine (not available in Oregon).
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% |
Deferred income annuity products are not meant for Medicaid eligibility, and the MassMutual RetireEase Choice cannot be used as a Medicaid-compliant annuity. Speak with a Medicaid specialist to find an annuity for this purpose.
Read more: The Best Annuities of 2024
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Our Take on the MassMutual RetireEase Choice Income Annuity
This deferred income annuity is a great choice for individuals or couples who are a few years or more from retirement but want to secure a guaranteed income for later. This annuity can be used as a qualified longevity annuity contract (QLAC) and deferred up to $200,000 from required distributions until 85 years old. By choosing a deferred income annuity, investors can receive a guaranteed future payout and maintain some control over payout timing even after issuance.
The optional inflation protection rider, death benefit and the period certain surrender schedule means this annuity can offer more peace of mind for retirees who value security but still need some level of flexibility if their circumstances change. MassMutual’s financial stability leaves little doubt that the money is safe over a lifetime of future payments.
Compare Products From MassMutual
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| Product |
Rate
|
Guarantee Period
|
Surrender Period
|
AM Best Rating
|
|---|---|---|---|---|
Advantage 5 Advisory |
5.05% | 5 Years | 5 Years | A++ |
|
American Freedom Aspire 3 |
4.45% | 3 Years | 3 Years | A++ |
|
American Freedom Aspire 5 |
4.55% | 5 Years | 5 Years | A++ |
|
American Freedom Aspire 7 |
4.00% | 7 Years | 7 Years | A++ |
|
American Freedom Classic 5 |
4.90% | 5 Years | 5 Years | A++ |
|
Freedom Elevate 3 |
4.70% | 3 Years | 3 Years | A++ |
|
Freedom Elevate 5 |
4.35% | 5 Years | 5 Years | A++ |
|
Freedom Elevate 5 |
4.15% | 5 Years | 5 Years | A++ |
|
Freedom Elevate 7 |
4.05% | 7 Years | 7 Years | A++ |
|
Freedom Elevate 7 |
3.55% | 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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