AgeUp Review

Written By Duncan Ryan
Last updated November 8, 2021

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Investing
November 8, 2021

Simple. Thrifty. Living.

AgeUp is an annuity provider that offers guaranteed income products to people over the age of 90. Below is a comprehensive AgeUp review that will help you understand the benefits and downsides of the company’s annuity plan.

What Is AgeUp?

AgeUp is a deferred income annuity designed to provide additional retirement income to people who live into their 90s. The annuity is backed by MassMutual Insurance. AgeUp distinguishes itself by providing late-life income to the growing nonagenarian demographic. The company also makes signing up convenient with a digital application and no medical exam requirement.

AgeUp Eligibility

Consumers ages 50 to 75 qualify to enroll in the AgeUp annuity. At the moment, AgeUp offers plans in 47 states. New York, Florida and California residents are not currently eligible. However, the company states that it intends to offer plans in California in the near future. Enrollees must also be US citizens or permanent residents.

How Do AgeUp Premiums and Payouts Work?

Once you enroll with AgeUp, you’ll make payments until 13 months before your target payout age. You can set a preferred target age anywhere from 91 to 100. Premiums are flexible and range from $50 to $250 per month. Once you reach your target age, you’ll begin receiving monthly payouts based on the premiums you’ve paid in. Those payments will then continue for the remainder of your life.

AgeUp Return of Premium Option

AgeUp also includes an optional return of premium feature. This option allows you to leave your premiums to a beneficiary if you die before your target age. Upon your death, your beneficiary will receive all the premiums you’ve paid into the annuity.

Larger Payments in the End

If you forego this option, on the other hand, you’ll receive larger payments after reaching your target age. If you’re counting on this annuity as a primary income, it’s best to skip the return of the premium option. For those using AgeUp only for supplemental income, though, it may be worthwhile to take the lower payments.

Pros and Cons of AgeUp

Like most financial products, AgeUp annuities have their pros and cons. The biggest benefit of deferred income annuities is the guaranteed nature of the payouts. Once you reach your target age, you’ll receive a predictable, defined payment each month for the rest of your life. Because annuities are insurance products, there’s no risk from market fluctuations. In this sense, AgeUp annuities are among the safest investments you can make.

Annuities Aren’t Liquid

On the downside, annuities lack liquidity, meaning you won’t be able to withdraw additional funds for emergencies. In order to take advantage of the benefits, you also have to live to at least 91. If you don’t choose the return of premium option but pass early, AgeUp doesn’t return your money to your survivors.

Annuities Don’t Respond to The Market

A final downside of annuities like AgeUp’s plan is that they don’t respond to rising markets. While they don’t include any risk, they also don’t offer upside as investments. The defined nature of the payments also makes annuities vulnerable to inflation. These downsides don’t make annuities bad investments, but it’s important to have other investments in your portfolio. Mutual funds, real estate and other assets can balance your portfolio and give it greater diversity.

Why Do You Need to Plan for Your 90s?

While living to 90 is still uncommon, it’s a possibility your retirement plan should account for. Assuming average health, a 65-year-old man today has a 35 percent chance of reaching 90. For women in similar health, the likelihood is 46 percent. With life expectancy increasing, more and more people will have to navigate financial life at 90 and beyond.

Most Don’t Save Enough

Unfortunately, few people save enough to last into their 90s or later. Most retirees will run out of savings well before they’re 85. If you do live into your 90s, though, you’ll likely need additional income to supplement rising healthcare expenses. For this reason, it’s very important to have a plan in place beyond your 80s.

Stability and Certainty

Deferred income annuities like AgeUp can provide stability and certainty for your old age. While they’re used when you’re older, they should be included in your financial plan early on. By creating a comprehensive plan for your retirement well before you stop working, you can ensure you have a good financial roadmap. Starting annuity contributions early will also let you receive higher payments when you begin receiving benefits.

Is AgeUp Worth It?

AgeUp offers a buffer against the risk of outliving your retirement savings. More people today are living into their 90s and 100s than ever before. Despite this fact, relatively few consumers save enough to account for the possibility of longer life spans. AgeUp gives older adults a backup income plan on a flexible basis. If you’re a consumer in the eligible age range, AgeUp is a great way to give yourself peace of mind.

Annuities Can Be a Great Source of Income

Keep in mind, though, that AgeUp isn’t a magic bullet solution. Annuities are great sources of supplemental income later in life. That said, you still need to invest elsewhere to give yourself the highest possible level of financial independence in retirement.
It’s also worth noting that AgeUp isn’t particularly relevant to younger investors due to its eligibility age range. If you’re younger than 50, it’s best to focus on investing in 401(k) or IRA accounts. Maximizing these retirement instruments while you’re young can help you build wealth that will last throughout your golden years.

AgeUp Customer Service

AgeUp offers customer support via phone or email. You can also use the company’s handy benefit calculator to see what your monthly payouts could be. They also offers a comprehensive product guide with in-depth information you can review with your financial advisor.

AgeUp Review Summary

AgeUp is a solid annuity backed by one of the most time-tested insurance companies in the business. As late-life supplemental income, AgeUp offers real value to people who significantly exceed average life expectancy. The ability to set your own premiums and target age makes AgeUp a flexible solution for income in your 90s. Overall, AgeUp is a very good option for guaranteeing yourself a predictable income in your later years.

About the Author

Duncan Ryan

Duncan Ryan is a long-time professional freelance writer with a focus on finance, economics, science, technology and medicine. A lifelong independent learner, Duncan is always on the search for the next exciting challenge.

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