Schwab Expands Fixed Income Annuity Offering to Meet Growing Need for Retirement Income Solutions

Addition of highly rated market leader MetLife enhances Schwab’s fixed income annuity offer and gives investors more choice

Tuesday, June 21, 2011 6:00 am PDT



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"These products can play an important role in a broader investment portfolio, with fixed income annuities providing steady income and other investments such as mutual funds, ETFs or stocks capturing market upside and protecting against inflation risk."

SAN FRANCISCO--(BUSINESS WIRE)--As the first wave of Baby Boomers enters retirement this year, and the need for retirement income solutions becomes increasingly important, Charles Schwab today announced an expansion of its Single Premium Immediate Annuity (SPIA) offer, a fixed income annuity platform that provides choice and flexibility for people seeking ongoing sources of guaranteed income in retirement. Schwab’s newly expanded SPIA Choice Platform now includes a fixed income annuity product from MetLife Investors USA Insurance Company*, which was recently added to a line-up that already included Nationwide Life Insurance Company and Symetra Life Insurance Company.

Fixed income annuities are insurance contracts purchased with a single premium that begin paying income in fixed payments within 13 months of the purchase. One of the few products that guarantee an income stream for life, fixed income annuities can help people mitigate longevity risk while protecting assets from market volatility.

“Over the past year, we’ve seen a confluence of economic and demographic changes that have resulted in an increased focus on the need for guaranteed retirement income sources,” said Peter Crawford, Senior Vice President, Charles Schwab. “These additions to our existing SPIA platform further diversify our fixed income annuity offering and are consistent with Schwab’s overall open architecture approach that enables investors to choose the products that make the most sense for their specific situation.”

“Fixed income annuities can offer peace of mind because they provide consistent and reliable monthly ‘paychecks’ throughout retirement,” said Beth Chang, Director of Retirement Services at Charles Schwab. “These products can play an important role in a broader investment portfolio, with fixed income annuities providing steady income and other investments such as mutual funds, ETFs or stocks capturing market upside and protecting against inflation risk.”

Chang also noted that creating a steady stream of payments using a fixed income annuity can help retirees delay tapping into Social Security, which can help people avoid penalties associated with taking Social Security payments too early, and can also enable people to receive a credit of eight percent per year for delaying taking Social Security payments, even after they are eligible, up to age 70.

Additional information about Schwab’s SPIA Choice Platform is available at or by calling an annuity specialist at 1-888-311-4887. Schwab Fixed Income Specialists are available at 1-877-908-1075.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 8.1 million client brokerage accounts, 1.4 million corporate retirement plan participants, 736,000 banking accounts, and $1.7 trillion in client assets as of May 31, 2011. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Independent investment advisors are not owned, affiliated with or supervised by Schwab. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at and (0611-3954)

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*All guarantees are based on the claims-paying ability and financial strength of the issuing insurance company. The Single Premium Immediate Annuity is issued by MetLife Investors USA Insurance Company, Irvine, CA 92614.

Charles Schwab & Co., Inc, a licensed insurance agency, offers annuity and life insurance products that are not affiliated with Schwab. The contract is not available in all states.


Charles Schwab
Michael Cianfrocca, 415-667-0344
Pablo Rodriguez, 415-486-3267

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