RiverSource at a Glance: Rates, Products and Reviews
RiverSource is a subsidiary of Ameriprise Financial offering a variety of annuities including structured, immediate and variable annuities. Check out RiverSide's offerings to see if it's right for you.
- Written by Christy Bieber
- Edited By
Michael Santiago, CRPC™
Michael Santiago, CRPC™
Senior Financial Editor
Michael Santiago, a senior financial editor, joined RetireGuide in 2023. With over 10 years of professional writing and editing experience, he brings a wealth of expertise in creating content for diverse industries, including travel and healthcare. Having traveled to more than 40 countries across five continents and lived in Europe and Asia for several years, Michael's global perspective enriches his work. He combines his strong writing skills, editorial judgment and passion for crafting accurate and engrossing content to enhance the user experience on RetireGuide.
Read More- Published: November 5, 2024
- Updated: November 11, 2024
- 7 min read time
- This page features 4 Cited Research Articles
- RiverSource offers a variety of annuity options including immediate annuities, variable annuities and structured annuities.
- RiverSource charges surrender fees and a per-contract fee for some of its products.
- RiverSource has top financial strength ratings and a solid Better Business Bureau score.
RiverSource offers life insurance and annuity products to help customers build a secure retirement. Variable, structured and immediate annuities are available to investors, while the company also provides life insurance, long-term care insurance and disability income insurance.
If you are looking for an annuity provider, this guide will explain everything you need to know about RiverSource so you can decide if they are right for you.
Overview of RiverSource
RiverSource has a 130-year history of helping clients build financial stability and security. The insurer is one of the largest in the country. It is a subsidiary of Ameriprise Financial, which offers advisors who provide comprehensive support on issues such as income protection, retirement planning and legacy planning.
RiverSource Life Insurance Company, which is headquartered in Minneapolis, Minnesota, issues both annuity and insurance products throughout the United States while RiverSource Life Insurance Co. of New York offers insurance products throughout New York State.
RiverSource’s President of Insurance and Annuities has made clear that “[their] leadership team is committed to designing and managing solutions that stand the test of time,” and RiverSource touts its commitment to “help you live confidently every day” while staying on track with your financial goals.
Types of Annuities Offered by RiverSource
RiverSource offers three types of annuities that you can purchase.
- Structured Annuities
- Structured annuities help you generate income through exposure to equities while protecting against losses. RiverSource Structured Solutions 2 allows you to allocate your money among different accounts based on well-known market indexes and an ETF providing exposure to both U.S. and international companies. You can choose index accounts offering a guaranteed monthly income for life, regardless of how your investments perform.
- Variable Annuities
- Variable annuities from RiverSource offer access to more than 120 funds so you have investment flexibility. Variable annuities can be an excellent addition to your long-term retirement plans as you can avoid taxes on earnings until withdrawals. RiverSource offers both RAVA variable annuities, which are professionally managed, and RAVA 5 Access® inherited non-qualified stretch annuity, which is designed for beneficiaries of non-qualified annuities who want annual distributions so they can pay taxes slowly over time.
- Immediate Annuities
- Immediate annuities essentially allow you to create your own pension. You'll make a lump sum payment in exchange for receiving a specific amount of income for either a set length of time or for life. Immediate annuities begin paying quickly so are an ideal choice if you're already retired or close to it. RiverSource offers the RiverSource® SecureProvider immediate annuity which locks in your retirement income for your chosen term regardless of market performance.
If you want predictable and stable income, fixed annuities that come with a set guaranteed rate can be the ideal option. Conversely, the performance of both index and variable annuities is tied to stock market movements. While this exposure introduces higher risk, it also opens the door to potentially greater returns.
Learn More About Your Annuity Options
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Key Features and Benefits
RiverSource annuities offer many features that you may be looking for. Here are some options you can take advantage of when you buy an annuity from RiverSource:
- Return of Purchase Payments: This standard death benefit is included in the purchase of your annuity and ensures beneficiaries receive at least the amount you invested, adjusted proportionally for early withdrawals
- Maximum Anniversary Value (MAV) and Maximum Five-Year Anniversary Value (MAV5) Death Benefits: These optional death benefits allow you to lock in gains your contract achieves in the market. You can lock in the contract anniversary value each year until you are 80, or every five years until you're 80. Your beneficiaries are guaranteed to receive the highest lock value, adjusted for early withdrawals.
- Enhanced Legacy Benefit: This optional death benefit, when purchased with a variable annuity, guarantees your beneficiaries the highest value on your contract anniversary through age 85 or 5% compound growth on the contract anniversary through age 80.
- Benefit ProtectorSM: Another add-on to variable rate annuities, this optional death benefit guarantees your beneficiaries will receive up to an additional 25% to 40% of contract earnings depending on your age at the time of purchase.
- Access to a Lump Sum in Case of Emergency: Most immediate annuities allow you to request to receive a full or partial lump sum instead of your remaining guaranteed payments. This provides added flexibility in case you need it.
It’s also important to understand the benefits of choosing RiverSource. Here are some key advantages:
- Retirement Planning Assistance: RiverSource retirement planning tools are helpful for investors. You can take advantage of their Income Guide program to help you better understand whether you're on the path to a secure retirement. You can also work with an Ameriprise advisor for personalized support.
- Generous Death Benefits: RiverSource provides both optional and standard death benefits so you can ensure your beneficiaries are protected and provided for. This includes return of purchase payments, which is offered as a standard option.
- Flexible Withdrawal Options: RiverSource's immediate annuities provide you with flexibility if you need it, including the ability to access a lump sum as well as payment acceleration options.
- Choice of Annuity Products: RiverSource provides a wide variety of products. These include annuities that offer a fixed rate and guaranteed returns as well as variable and index annuities that provide the potential for higher returns through exposure to equities while still shielding you against risk. Anyone planning for retirement can find options with RiverSource.
Fees and Charges
Like most annuity providers, RiverSource charges certain fees and imposes penalties for surrendering annuities. Fees vary by product. Here are examples of some of the costs you may incur:
- A $50 annual contract fee for RAVA 5 Advantage® and RAVA 5 Choice.
- 0.95% - 1.10% mortality and expense risk fees for RAVA 5 Advantage and 0.95% - 1.20% for RAVA 5 Choice
There are also withdrawal fees that apply if you withdraw more than 10% of your contract ahead of schedule. These vary based on the term length of your annuity as well as how soon you withdraw funds.
The table below provides an example of these fees. It shows surrender charges for RiverSource Structured Solutions 2.
| Contract Years | 1 | 2 | 3 | 4 | 5 | 6 | 7+ |
| 6-year surrender charge schedule | 9% | 8% | 8% | 7% | 6% | 5% | 0% |
| 3-year surrender charge schedule | 9% | 8% | 8% | 0% | 0% | 0% | 0% |
The returns you can earn will also vary based on your product selection, including the specific investments chosen for annuities that provide exposure to the market.
The table below provides an example of returns earned, along with how surrender charges can impact them. This is for the RiverSource® RAVA Apex variable annuity with a Variable Portfolio – Aggressive Portfolio (Class 2).
| 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
| With surrender charges | 18.71% | 1.53% | 7.45% | 6.50% | 7.42% |
| No Surrender Charges | 25.71% | 3.75% | 8.19% | 6.50% | 7.42% |
Higher fees impact the returns you earn, which is why it is important to make sure the costs you’re paying are affordable. Surrender charges, in particular, can reduce your ROI, so avoid committing money to an annuity if you are not confident you can leave your funds invested for the duration of the annuity term.
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Customer Service and Financial Stability
RiverSource receives high financial stability rankings from independent agencies. Ratings from major agencies include:
- Moody's Investor Service: A1 (Good)
- A.M. Best: A+ (Superior)
- Standard & Poors: A+ (Strong)
RiverSource is one of few insurers that did not experience a decline in ratings during the 2008 to 2009 financial crisis. RiverSource is also a subsidiary of Ameriprise Financial, which received an A+ rating from the Better Business Bureau.
RiverSource offers a variety of annuity options, with top-notch benefits including death benefits that protect your heirs. Its long history in the business and solid financial strength ratings mean you can trust the insurer to follow through on your annuity contract.
You will need to evaluate RiverSource products carefully, including the fees and historic returns, to determine if their annuities can help you accomplish your investment goals. Consider your risk tolerance, investment timeline and total asset allocation to decide if purchasing a RiverSide Annuity is right for you.
Editor Norah Layne contributed to this article.
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4 Cited Research Articles
- RiverSource. (2024, September 30). RAVA 5 Advantage® variable annuity. Retrieved from https://www.riversource.com/annuities/performance/riversource-rava-5-advantage-variable-annuity
- RiverSource. (2024, March). RiverSource Structured Solutions 2 SM annuity. Retrieved from https://www.riversource.com/binaries/content/assets/riversource
- RiverSource. (2024). Our Ratings and Rankings. Retrieved from https://www.riversource.com/about-us/ratings-rankings
- RiverSource. (2023, November). RAVA Apex® variable annuity. Retrieved from https://www.riversource.com/annuities/performance/riversource-rava-apex-variable-annuity/
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