American General Power Index 5 Plus Review

American General Power Index 5 Plus is a fixed annuity option offered by Corebridge Financial. With the short 5-year surrender period and attractive benefits, this annuity type may be the one to multiply your retirement savings.

In this review, you will discover the American General Power Index 5 Plus performance, advantages, and more.

About Corebridge Financial

American General Power Index 5 is a fixed index annuity offered by Corebridge Financial. Founded in 1850, the company has established itself as a trusted institution in the insurance industry.

Corebridge Financial is one of the biggest providers of retirement solutions to meet the diverse needs of individuals and families. Based in New York, the company has a proven track record of excellent customer service and a wide portfolio of products and services.

Corebridge Financial enables people to take action toward their financial stability and remains one of the sought-after providers of annuity options.

Corebridge Financial Rating

Rating Company

Rating

Moody’s

S & P

A+

A.M. Best Rating

Comdex

American General Power Index 5 Plus Highlights

5-Year Fixed Index Annuity
American General Power Index 5 is a 5-year fixed index annuity that offers flexibility and continuous growth of your retirement funds. Thanks to the Guaranteed Growth Rate, your premium will grow by at least 1% every year after accounting for any withdrawals you've made and any charges that apply to those withdrawals.
Free Withdrawals
One of the American General Power Index 5 plus advantages is an opportunity to withdraw your savings 1 year after opening an account. Let your money sit and grow for the first year, and withdraw up to 10% in the second year and later.
Attractive Interest-Crediting Options
The Power Index 5 offers multiple different index interest accounts, including the S&P 500 Index, ML Strategic Balanced Index, PIMCO Global Optima Index, MSCI EAFE Index, and Russell 2000 Index. Each of them offers their unique benefits and will suit the needs of many people.
Guaranteed Growth Rate
The rate of the American General Power Index 5 is determined when the contract is issued and kept the same for the duration of the contract. The Minimum Accumulation Value protects against the volatility of the market and additionally sets a minimum of 1% growth per year, which may increase depending on the market fluctuations.
Cash Surrender Value
If you decide to surrender your annuity completely, you will get a higher amount between the contract value and the Minimum Accumulation Value. Note that both of these amounts will be affected by the withdrawal charges.
Death Benefit
Upon death, the beneficiary will receive the full account value or protected income value in either a lump sum or by selecting an available annuitization option.
Accumulated Assets with Tax Deferral
Another American General Power Index 5 plus benefit is the possibility to grow your earnings without tax until you start withdrawing them. Moreover, since the Power Index 5 is only a 5-year annuity, you won’t have to wait long to put the money to good use during retirement.

American General Power Index 5 Plus Overview

🔔 Important Information

Annuity Term

5 Years

Type of Annuity

Fixed Index

Interest

8% 7% 6% 5% 4%

Premium Type

Single Premium Annuity

Maximum Issue Age

90 years

Withdrawal Charge Schedule

1st year: 0%
2nd+ year: 10%

Minimum Premium

$25,000

Maximum Premium

$1,000,000

RMD

Yes

Market Value Adjustment

Possible

American General Power Index 5 Plus of Return

The hypothetical historical performance provided herein showcases the annualized return of allocation strategies, representing the investment's annual growth rate considering compounding effects. Similar analyses can be found for each account in official fixed index annuity illustrations provided by insurance carriers.

What's not reflected:
The annualized return does not encompass rider charges, strategy fees, or applicable premium bonuses.

Notes on rates:
The information presented assumes the annuities' current caps, spreads, participation rates, and other related rates, without guarantee.

No guarantees:
These actual elements are subject to change over time, resulting in potentially higher or lower outcomes. Additionally, no single index consistently outperforms in every scenario. It is advisable to consult with a properly licensed and educated annuity professional before making any decisions.

Fees and Charges

The Power Index 5 is a fixed index annuity with no annual fees.

Index Options

With Power Index 5, you can earn interest based on three different indices:

Crediting Methods

Your assets can grow based on the performance of the index interest account you select, calculated as follows:

Annuity Surrender Charge Schedule

As for the annuity surrender charges, the Power Index 5 is no different than any other annuity product. If you decide to withdraw your money earlier than stated in the contract, you will be faced with a fee. This fee is a surrender charge that gradually lowers each year until it reaches 0%.

In the case of American General Power Index 5, the annuity term is 5 years, with the first year being the most costly to withdraw money.

American General Power Index 5 Plus Features

There are quite a few American General Power Index 5 Plus advantages, but the most important one is:

Minimum Accumulation Value (MAV)

Ensures premium growth of at least 1%.
Can be adjusted to prior withdrawals and applicable charges.
Secures the higher value of your contract or MAV on the 5th contract anniversary and afterward.

Pros and Cons

Key Takeaways

Power Index 5 is a fixed index annuity for a term of 5 years. Overall, it ensures a guaranteed growth of at least 1%. Moreover, as a tax-deferred investment, the tax is only applied when you start withdrawing your investment, meaning that given enough time, your assets will have the potential to accumulate enough for your comfortable retirement.

When investing in fixed index annuity, Power Index 5 will grow regardless of whether the index is performing positively or negatively. Hence, for some, this option may be a secure investment in the long run.

About the Product

Product Name

Power Index 5

Product Type

Fixed Indexed Annuity

Product Information

The Power Index 5 is a 5-year fixed index annuity product with guaranteed growth opportunity. By investing in a single tax-deferred premium, retirees can benefit from guaranteed income for life and protection from market downturns.

Product Brochure

Account Types

Non-Qualified, IRA, IRA Rollover, IRA Transfer, SEP IRA, IRA-Roth, Stretch IRA, Inherited IRA, NQ Stretch, and TSP

Not Available In

New York

Annuity Expert

Jeremiah Konger

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Other Corebridge Financial Fixed Index Annuity Products

Besides the Power Index 5, which is designed to help you grow your savings for 5 full years, there is Power Index Premier. Also available in New York, it is a longer type of fixed index annuity lasting 7 years.

Power Index Premier NY

The Power Index Premier NY is an interest-based annuity that is based on a positive change in an index. This is the only available index fixed annuity with an income protection feature in NY, making it a great retirement solution.

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