(Image credit: Tammy Cuff/ArtWithTammy.)
Haven Life (New York) has announced that its AgeUp annuity product is now available for purchase in 44 states, including Washington, D.C. and Puerto Rico. The product debuted in 10 states in late 2019. AgeUp is designed to provide the adult children of the Boomer generation with financial protection for their parents once they reach an advanced age. The product is issued by Haven Life’s parent company MassMutual (Springfield, Mass.).
With the product’s availability in the 44 jurisdictions, Millennials and Gen Xers across the majority of the country can now purchase AgeUp, which provides guaranteed payouts once a parent reaches the selected age and lasts for the rest of their lifetime. Built to be financially accessible to all, AgeUp does not require upfront payments or large monthly contributions. Instead, premiums are flexible, as purchasers can choose to pause, increase or decrease their payments at any time. AgeUp is exclusively available online, and buyers can sign up directly via the website.
Easing Financial Burden
AgeUp addresses the problem caused by the longevity of Baby Boomers, who are outliving increasingly their retirement savings. The resulting financial burden typically falls on the their adult children. AgeUp has gather data showing that 68 percent of millennials and Gen Xers expect that they’ll financially support their parents should they outlive their retirement savings. However, the number of adult children who are acting on that belief is considerably smaller, with only 37 percent saying they have already accounted for their parents and in-laws in their own long-term financial planning. This is likely because discussing personal finances is widely considered taboo; 56 percent of millennials and Gen Xers surveyed said they “never” speak with their parents about their financial plans for retirement, or they speak about it “rarely” (once per year). AgeUp’s full findings on how millennials and Gen Xers are approaching their parents’ longevity, retirement savings, and financial planning can be found here.
The AgeUp product is issued by MassMutual and was developed by MassMutual’s in-house startup, Haven Life Insurance Agency, out of its newly opened Boston Studio. In 2020, AgeUp will expand its offering to allow Baby Boomers to purchase the product for themselves.