Available in Minnesota and Missouri

The American Pathways Fixed Annuity suite, offered by Corebridge Financial (formerly AIG Life & Retirement), provides individuals with a secure way to save for retirement and receive predictable income. These products are designed for conservative investors seeking principal protection and guaranteed interest rates, free from market volatility.

Core Features and Benefits

Feature

Description

Principal Protection

Guarantees that the initial investment (premium) will not decrease due to market performance.

Guaranteed Interest Rates

Offers fixed interest rates for a specified period (the Guarantee Period), providing predictable growth.

Tax-Deferred Growth

Earnings grow tax-deferred until withdrawal, allowing the interest to compound faster.

Lifetime Income Options

Can be annuitized to provide a stream of guaranteed income that lasts for life.

Death Benefit

Provides beneficiaries with the accumulated value of the annuity, typically without the delays and expenses of probate.

Liquidity

Generally allows for annual penalty-free withdrawals (typically 10% of the account value).

Product Variations

Corebridge Financial typically offers variations of the American Pathways Fixed Annuity to meet different client needs, primarily distinguished by the length of the guarantee period and withdrawal options. While specific product names and features may change, common structures include:

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1. Traditional Fixed Annuity (e.g., American Pathways Fixed Annuity)

• Description: A standard fixed annuity providing a guaranteed interest rate for a specific term (e.g., 3, 5, or 7 years).

• Key Characteristic: Predictable, conservative growth for the term selected. After the guarantee period, the rate typically adjusts annually but will not fall below a contractual minimum.

• Best Suited For: Investors focused on safety and stable, moderate growth who have a defined time horizon for needing the funds.

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2. Fixed Index Annuity (FIA)

• Description: While technically distinct from fixed annuities, Corebridge often offers index-linked variations (sometimes marketed alongside the Pathways suite or as a separate series) that credit interest based on the performance of a market index (like the S&P 500), but never less than 0%.

• Key Characteristic: Offers growth potential tied to the market index while protecting the principal from losses.

• Best Suited For: Investors seeking slightly higher growth potential than a traditional fixed annuity without risking principal in a down market.

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Financial Details

Guarantee Periods

American Pathways Fixed Annuities are typically available with various interest rate guarantee periods, which directly correlate with the surrender charge schedule:

Guarantee Period

Typical Duration

Surrender Charge Structure

Short-Term

3 or 5 years

Surrender charges generally decrease each year until the end of the term (e.g., 5%, 4%, 3%, 2%, 1% for a 5-year term).

Mid-Term

7 years

Longer surrender schedule, potentially offering a slightly higher initial interest rate.

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Interest Rate Mechanics

1. Initial Guaranteed Rate: The interest rate applied to the premium for the duration of the guarantee period.

2. Renewal Rate: The rate applied after the initial guarantee period expires. This rate is declared annually by Corebridge Financial but is subject to a Minimum Guaranteed Interest Rate (MGIR) specified in the contract.

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Surrender Charges

If funds are withdrawn above the annual penalty-free amount (usually 10% of the contract value) before the guarantee period ends, the annuity owner incurs a surrender charge. This charge is a percentage of the amount withdrawn and declines over the life of the guarantee period.

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Annuitization and Income

At the time of retirement, the annuity can be converted (annuitized) into a guaranteed income stream. Options typically include:

• Life Only: Payments cease upon the death of the annuitant.

• Life with Period Certain: Payments are guaranteed for the life of the annuitant, but also for a minimum period (e.g., 10 or 20 years), ensuring beneficiaries receive remaining payments if the annuitant dies early.

• Joint and Survivor: Payments continue for the life of a surviving spouse or co-annuitant.

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Suitability and Target Audience

The American Pathways Fixed Annuity products are designed for individuals who prioritize safety, predictability, and capital preservation within their retirement savings plan.

Target Audience:

• Pre-retirees or retirees nearing the income phase.

• Conservative investors looking for a guaranteed rate of return.

• Individuals seeking to defer taxes on retirement savings growth.

• Those who have maximized contributions to traditional qualified retirement plans (like 401(k)s or IRAs) and need a reliable, tax-advantaged vehicle for non-qualified savings.