Symetra Annuity Review

The Symetra Edge Plus® fixed indexed annuity comes in five- and seven-year variations, with the former giving you access to your money in five years and the latter in seven. The minimum opening investment for this contract is $10,000, and the maximum issue age is 85 years old.

As this is a fixed indexed annuity, you’ll receive both a fixed account and an indexed account. The rate associated with the fixed account will be determined by Symetra. The indexed rate, however, will be determined by which of the six offered indexes you pick (and the ensuing performance of that index).

Your index options include ones tracking the S&P and MSCI EAFE indexes, as well as a JPMorgan ETF index. Rather than invest your money directly into these indexes, your returns are based on their performance.

Fees

The fees associated with the Edge Plus annuity are fairly limited. In fact, there are no contract fees involved in owning this product. However, if you want to take advantage of the enhanced death benefit rider, you’ll need to pay a 0.90% annual fee.

You can withdraw up to 10% of your annuity’s value per year without incurring withdrawal fees. If you surpass this amount, these fees will apply:

As is the case with all annuities, annuitants that withdraw from their account prior to turning 59.5 years old will incur a 10% income surtax from the IRS, on top of standard income taxes.

Realistic Return Expectations

The interest rate you receive with this annuity will vary depending on a number of factors, such as how much money you invest and when you open your account. Unfortunately, Symetra does not publicly release its fixed interest rates. The returns associated with the six indexed accounts will depend on the market and are therefore difficult to predict.

The Symetra Trek index-linked annuity has a minimum initial purchase of $25,000 and a maximum issue age of 81 years old. Contract holders will own both a fixed account and an indexed account. At least $2,000 must be allocated to each account at any one time.

The fixed account adheres to a one-year term with an interest rate determined by Symetra. There are five indexes you can invest in, including:

• S&P 500® Index Point-to-Point
• Russell 2000® Index Point-to-Point
• NASDAQ 100® Index Point-to-Point
• MSCI Emerging Markets Index Point-to-Point
• PIMCO Equity Fusion Index Point-to-Point

The strongest free features of this contract are its two downside protection benefits. You can only choose one of them, though. Here’s how they work:

• 10% Floor: If your index investment declines in value, you will take on the first 10% in losses, and Symetra will cover anything beyond that.
• 10% Buffer: Should the index you invest in experience a decline, Symetra will protect you from the first 10% in losses.

Fees

If you own a Trek contract, you will not be required to pay any annual fees. The only way you will encounter a fee is if you take out more than the allotted 15% of your contract value or total interest earned annually. This is a generous percentage, as most annuities start imposing fees after you’ve taken out more than 10% of your contract value. 

The fees below apply to any withdrawals over that amount:

Don’t forget that if you begin taking withdrawals from your account before you turn 59.5, you’ll not only need to pay income taxes, but also a 10% income surtax.

Realistic Return Expectations

Symetra does not release any fixed rates or index caps/participation rates for this annuity contract. However, the specifics of your returns will be determined by a number of factors, such as your age, gender, state of residence, premium size and more.

The Symetra Custom 5 fixed deferred annuity calls for a minimum initial premium payment of $25,000. If you’re looking to add the guaranteed return of purchase payment benefit onto your contract, the maximum issue age is 90 years old. For all other contracts, the maximum issue age is 85.

As the annuity's name infers, contract holders will receive a five-year interest rate guarantee period. Symetra will list a minimum rate for you in your contract. Once the interest rate guarantee period is over, your rate will renew on an annual basis.

Fees

The Custom 5 annuity is a low-cost product, as contract holders are not required to pay any annual fees to retain their ownership. When it comes to premature withdrawals, though, you’re only entitled to 10% of your contract value annually. Should you go above and beyond that limit, the following withdrawal fees will apply:

Annuitants who withdraw from their account may be required to pay a 10% income surtax levied by the IRS. This is in addition to normal income tax rates.

Realistic Return Expectations

The fixed interest rates Symetra pays for this annuity change depending on the size of your initial payment. Generally speaking, the larger the deposit, the better the rate you'll receive.

The Advantage Income contract is a single-premium immediate annuity, which is sometimes referred to as an SPIA. You can be as old as 90 to open an account as long as you have at least $10,000 ready to invest. As far as payouts go, you can choose from single life and joint life options, with or without a period certain. You can also wait as long as 13 months to begin receiving payments.

Because this annuity is all about income, annuitants can decide to increase their payouts by up to 6.5% annually in an effort to help with inflation. Also, after your first three years of ownership, you can take out up to 30% of your future guaranteed and life-contingent payments every three years.

The death benefit comes with three options:

• Life with installment refund: Your beneficiaries will continue getting payments until the total payout is equal to your purchase payment.
• Life with cash refund: Rather than payments, your beneficiaries will receive a lump-sum payout.
• Commutation to Beneficiary option: With this, your beneficiaries can change your contract’s remaining guaranteed payments into a lump-sum payment.

Fees

There are no withdrawal, annual, administrative or mortality and expense risk fees with this annuity.

The IRS may levy a 10% income tax penalty on annuitants who take withdrawals prior to turning 59.5 years old. This is in addition to paying the standard income tax rate on your withdrawals.

Realistic Return Expectations

Like any immediate annuity, the returns you receive are based entirely on the amount of money you put in, the payout option you choose and whether or not you take advanced payments.