America Speaks out on Retirement: New Research Reveals That Guaranteed Income for Life is Top Retirement Goal for 97 Percent of Baby Boomers

New research sponsored by AIG SunAmerica and conducted by Harris Interactive reveals that securing a significant source of retirement income guaranteed for life is a top financial goal for virtually all baby boomers. Acknowledging that they are not financially prepared for a retirement that could last more than 30 years, boomers polled in the research consistently cited guaranteed lifetime income, protection against investment losses, and sufficient income to meet rising health care costs as their most important financial planning objectives. What’s more, nearly three-quarters of boomers polled said they would be interested in an investment product that could address these needs, and two-thirds said they would be willing to pay up to two percent of annual investment returns for a lifetime income guarantee. "Baby boomers have changed the retirement conversation in this country,” said Jana Waring Greer, President, AIG SunAmerica Retirement Markets. "They are no longer talking about building a retirement portfolio; they are asking for help in investing it, protecting it, managing it, and stretching it across the remainder of their lives. In short, they’re asking for guaranteed lifetime income that can rise with – and even outpace – the cost of living. Since there is only one industry that knows how to manage the risks inherent in that kind of guarantee, it creates a sweet spot for insurers that specialize in retirement savings.” Specifically addressing the vast rollover market, Greer noted that two-thirds of all boomers said they would be interested in allocating a portion of their qualified plan into a variable annuity that offered the potential for stock market growth, downside protection and guaranteed lifetime income. "That’s an enormous opportunity for the insurance industry,” she said. AIG SunAmerica asked Harris Interactive to conduct the America Speaks Out on Retirement: 2007 Investor Research Study among both baby boomers (ages 45-60) and retirement-age adults (ages 61+, referred to in the research results as "Matures”) to better understand their most important financial concerns and priorities as they approach or enter retirement. The results underscore the dawning recognition among most Americans aged 45+ – even those with substantial nest eggs – that increasing longevity, rising healthcare costs and volatile investment markets could completely deplete their financial assets during retirement unless they find an investment strategy to replace the pension income guarantees of an earlier generation. "Boomers see the difference between their parents’ monthly pension checks and their own up-and-down portfolio results,” noted Greer. "They see companies freezing pension plans. They continue to read about open-ended, unfunded liabilities of public pension and healthcare plans. And they are demanding guarantees. Variable annuities offered by today’s leading insurance companies provide the solution – a combination of investment options and insurance guarantees that have evolved in anticipation of society’s changing needs.” Greer noted that strong interest in lifetime income guarantees was voiced among both boomer and mature age groups, by pre-retirees and those already retired, and across the wealth spectrum, from those with modest nest eggs to those with as much as $2 million in invested assets. "This research challenges conventional wisdom,” said Greer. "Affluent investors are just as likely as those without a large financial cushion to look down a potential 30-year retirement path and feel vulnerable. And they’re just as concerned about finding a solution.” Harris Interactive researchers asked study participants point-blank whether they would be interested in a product that could address their three greatest investment concerns – lifetime income, growth potential and protection from loss – and, if so, how much they would be willing to pay for it. Nearly three-fourths of baby boomers and two-thirds of Matures voiced interest. More revealing still, two-thirds of boomers and one-half of Matures said they would be willing to give up as much as two percent of annual investment returns to secure these benefits. "These results validate the tremendous R&D efforts that companies like AIG SunAmerica have made over the past two decades,” said Greer. "Our product development continuum has followed the needs of retirement-minded investors through each phase of their financial lives, creating opportunities to invest, protect and distribute assets more effectively. That innovation continues today.” "Variable annuities have evolved to offer the income solutions Americans are demanding, complete with growth potential, protection against market risk, the potential for rising income, and guarantees that income can last for a lifetime. In fact, leading companies now offer variable annuity withdrawal benefits that lock in the greater of the maximum anniversary investment gains or a five to six percent annual bonus in years in which clients choose not to take income. This means a client’s guaranteed retirement income has the ability to rise even if the market is flat, weak or declining.” "The message from our research is pretty clear-cut,” said Greer. "Americans are now facing a retirement that could last 30 years, they feel vulnerable and unprepared, and their investment goals are deeply influenced by this concern. In increasing numbers, their financial advisors are introducing them to retirement savings companies which offer living benefits for the solution. Given similar trends occurring around the globe, this just may be the greatest century for innovation and growth in our industry's history.” America Speaks Out on Retirement: 2007 Investor Research Study Key Results Increasing Longevity Inspires ‘No Confidence’ Vote. Baby boomers, on average, expect to retire by age 63. Yet 44 percent report they have not calculated a target income goal. And most acknowledge they are not planning for 30+ years in retirement. When presented with such a possibility, more than half of baby boomers expressed concern about outliving their financial resources. Matures, on average, retired at age 60. Yet they remain uncertain about the financial impact of increasing longevity. Among the 15 percent of this group not yet retired, more than one-third could offer no estimate of their potential lifespan in retirement. And with 85 percent already retired, Matures expressed particular concern about the impact of rising health care costs and inflation on their retirement strategies. Americans "Just Say Yes”' to Income for Life. Nearly eight out of 10 baby boomers rate "a significant retirement income source, other than Social Security, that is guaranteed for life” as very or extremely important. This may color how they manage their investments. More than three-fourths of boomers report they would increase their holdings in the stock market if they knew their investment could be protected from loss. Like the boomers, an overwhelming (95 percent) majority of Matures consider a source of guaranteed income for life other than Social Security important; 70 percent rate it very important. As a group, they are even more wary of the stock market than boomers. Retired Matures, in particular, characterized equities as "too risky” without protection from potential losses. A Healthy Response to a Well-Balanced "Financial Diet.” Among baby boomers’ top financial goals are income for life (97 percent), protection against losses (96 percent), and continued growth of assets (96 percent). When asked if they would consider an investment product designed to address all three goals, nearly three-quarters (73 percent) said they would be likely to do so. Most expressed willingness to pay more for such a product, with two-thirds (66 percent) of boomers willing to give up 2 percent of their annual investment return for the benefits. Matures are even more risk averse than boomers – their highest rated financial goal is protection against losses (98 percent). Just over two-thirds of Matures would consider a financial product that balanced growth potential with downside protection and income guarantees. And half would be willing to pay up to 2 percent of annual investment returns for the features. A New Role for Variable Annuities. A majority of baby boomers see a potential role for today’s new variable annuities in their retirement strategies, with two-thirds expressing an interest in allocating a portion of their qualified retirement savings plan into a variable annuity, and with half of boomers saying they would be interested in rolling over assets from their existing plan into a variable annuity. About half of Matures said they have qualified plans that can be rolled over into another account. This group expressed similar levels of interest in rolling those assets into a variable annuity with living benefits and asset protection. Research Methodology: The America Speaks Out on Retirement: 2007 Investor Research Study survey was conducted online within the United States by Harris Interactive on behalf of AIG SunAmerica between April 3-9, 2007. It surveyed 1,022 adults aged 45 and over, of whom 512 were 45-60 years of age years old and 510 were over the age 60. All were U.S. residents, had investable assets between $100,000 and $2 million (excluding 401(k) assets), and were financial decision-makers. With a pure probability sample of 1,022, Harris reports that there is a ninety-five percent probability that the overall results would have a sampling error of +/-3.06 percentage points. About Variable Annuities AIG SunAmerica variable annuities are issued by AIG SunAmerica Life Assurance Company except in New York, where they are issued by First SunAmerica Life Insurance Company, New York, NY. Annuities are long-term investment vehicles designed for retirement purposes. Withdrawals of taxable amounts are subject to ordinary income tax, and if taken prior to age 59½, a 10 percent federal tax penalty may apply. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may also reduce benefits available under the contract as well as the amount available upon a full surrender. Investment involves risk, including the possible loss of principal. The contract when redeemed may be worth more or less than the original investment. An investment in a variable annuity is not guaranteed or endorsed by any bank, is not a deposit or obligation of any bank and is not federally insured by the Federal Deposit Insurance Corporation (FDIC), Federal Reserve Board or any other federal government agency. The purchase of a variable annuity is not required for and is not a term of the provision of any banking service or activity. Neither AIG SunAmerica nor its representatives provide tax or legal advice. Clients should contact their own tax advisor or attorney regarding their particular situation. Distributed by AIG SunAmerica Capital Services, Inc. Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311-4992, (201) 324-6300. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. Please call 1-800-445-SUN2 or contact your investment representative to request a prospectus. Please read the prospectus carefully before investing. Typically, variable annuity living benefits are optional, subject to terms and conditions, and available for an additional fee. Guarantees are subject to the claims-paying ability of the issuing insurance company. Please see a prospectus for more information, including limitations and restrictions. About AIG SunAmerica Retirement Markets AIG SunAmerica Retirement Markets, Inc. (AIG SunAmerica), a subsidiary of AIG Retirement Services, Inc., specializes in marketing and distributing retirement savings products. The company supports the distribution of variable annuities through an extensive national network of registered representatives at independent broker-dealers, securities firms and banks. About Harris Interactive Harris Interactive is the 12th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest-running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world’s largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly owned subsidiaries Novatris in France and MediaTransfer AG in Germany, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at www.harrisinteractive.com. About AIG American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.