Protecting your retirement with guaranteed lifetime income Presenter: Date: © 2016 RiverSource Life Insurance Company. All rights reserved. Variable Annuities: Are not FDIC insuredMay lose valueAre not bank guaranteedAre not insured by any federal government agency Variable annuities will be part of the discussion

Creating a plan for your tomorrows Let’s discuss: Your retirement goals How you can determine your income needs in retirement How to make your money last through retirement © 2016 RiverSource Life Insurance Company. All rights reserved. 2

Envisioning your retirement Retirement goals What does your ideal retirement look like? Where do you see yourself living? What do you most look forward to doing? Where do you want to travel? © 2016 RiverSource Life Insurance Company. All rights reserved. 3

Retirement income © 2016 RiverSource Life Insurance Company. All rights reserved. 4 Things to think about: 1. Sources of income in retirement include Social Security and pension plans. 2. Most of us need an additional source of income to: -Preserve the money we have already saved -Keep pace with inflation -Make sure our money lasts as long as we do 3. We need to recreate our own “paycheck” from our investments.

When retirement begins Take a moment to: Picture a point in time when you stop receiving paychecks from your employer. Instead, you will begin taking income from your retirement savings. What is important to you about that income? What are your concerns? © 2016 RiverSource Life Insurance Company. All rights reserved. 5

The challenges of preparing for retirement © 2016 RiverSource Life Insurance Company. All rights reserved. 6 Longevity Inflation Market volatility Decisions based on emotion Social Security Pensions Security selection Income taxes Medical costs Amount of contributions Timing and amount of distributions Portfolio concentration Asset allocation process Lack of certainty Cost of essentials Variables

Focusing on challenges Factors that can impact your ability to retire comfortably Longevity Market volatility Inflation Withdrawal rate Your emotions We are here to help. © 2016 RiverSource Life Insurance Company. All rights reserved. 7

Longevity How many years will you live in retirement? 8 © 2016 RiverSource Life Insurance Company. All rights reserved. Plan for a longer retirement.

Market volatility Don’t leave your retirement success up to timing. How will the market perform when it matters most? 9 © 2016 RiverSource Life Insurance Company. All rights reserved. This example is for illustrative purposes only and is not indicative of any particular product. It does not reflect taxes, which would reduce the figures shown. Past performance is no guarantee of future results. There is no guarantee that investment objectives will be satisfied or that return expectations will be met. The numbers assume the following for both portfolios: $500,000 initial investment prior to withdrawals invested 50% in the S&P 500 and 50% in the Barclays Capital U.S. Aggregate Bond Index (formerly Lehman Brothers U.S. Aggregate Bond Index); with income taken each year, adjusted for a fixed, hypothetical 3.5% inflation and hypothetical 2% investment fee. Note: The bond portion of the portfolio from 1973 through 1975 is represented by: 25% Citigroup Long-Term High Grade Corporate Bond Index and 25% U.S. Government Bond File since the Barclays Capital U.S. Aggregate Bond Index did not start until It is not possible to invest directly in an index. Standard & Poor’s 500® Index (S&P 500®) is comprised of 500 stocks representing major U.S. industrial sectors. Performance figures are inclusive of dividends reinvested. S&P 500 is a registered service mark of The McGrawHill Companies, Inc. Barclays Capital U.S. Aggregate Bond Index is a market value-weighted index of investment-grade fixed- rate debt issues, including government, corporate, assetbacked and mortgage securities, with maturities of one year or more. Jim and Joe both: Retired at: 65 Had retirement portfolios of: $500,000 invested in: 50% equities and 50% bonds Took 6% annual withdrawals Increased withdrawals by 3.5% annually (to allow for inflation)

Inflation Impact of inflation on your income needs. Thirty years into your retirement, the impact of inflation alone can nearly triple your income need. This example is shown for illustrative purposes only. Assumes an annual inflation rate of 3.5%. Actual inflation rates may be higher or lower. © 2016 RiverSource Life Insurance Company. All rights reserved. 10 How will you keep pace with rising costs? Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, published Assumes an annual inflation rate of 3.5% Annual expenses for Americans age 65 and older

Withdrawal rates and making your money last 11 © 2016 RiverSource Life Insurance Company. All rights reserved. This analysis was created using probability modeling to determine the likelihood that inflation-adjusted withdrawals can be sustained over 30 years. Probability modeling uses statistical samples of values for inflation and investment growth rates to run many different trials. The historical returns were from 1950 through 2014 for the hypothetical portfolio. The hypothetical portfolio is assumed to have a moderate allocation as follows: 10% cash, 40% bonds and 50% equities. The indices used were: Cash: U.S. 30-Day Treasury Bill; Bonds: % SBBI U.S. Intermediate-Term Government Total Return Index (source: Ibbotson Associates) and 50% U.S. Investment Grade Corporate (source: Ibbotson Associates), (then revert to market value weighting for each 1968 – 1975), 1976 – 2014 Barclay’s Capital U.S. Aggregate Bond Index; Equity: 1950 – June 2001 Center for Research in Security Prices (CRSP) NYSE/Amex/NASDAQ (Deciles 1-10) Total Return, July 2001 – 2014 CRSP US Total Market; Inflation: U.S. Department of Labor - U.S. Consumer Price Index - Not Seasonally Adjusted. Indices are unmanaged and do not incur management fees or other expenses. You cannot invest directly in an index. Past performance is no guarantee of future results. There is no guarantee that investment objectives will be satisfied or that return expectations will be met. The data assumes reinvestment of dividends and does not account for taxes. While there is no guarantee your annuity with a guaranteed lifetime withdrawal benefit will keep up with inflation, this feature may provide a better chance of addressing this key challenge. Even with a modest 4% withdrawal rate, there is a chance you could run out of money.

The cost of emotional investing How can you stay focused and maximize your long-term opportunity? 12 © 2016 RiverSource Life Insurance Company. All rights reserved. You need to be ready for market downturns. Source: Standard and Poor’s, RiverSource Life Insurance Company. Returns are based on price index only and do not include dividends. For illustrative purposes only. Past performance is not indicative of future results. Data is as of 12/31/14. Standard & Poor’s 500 ® Index (S&P 500) consists of 500 stocks representing major U.S. industrial sectors. It is not possible to invest directly in an index. S&P 500 ® is a registered service mark of the McGraw-Hill Companies, Inc.

Expenses in retirement Essential vs. discretionary expenses 13 © 2016 RiverSource Life Insurance Company. All rights reserved. In which category would you like to allocate more funds?

Fulfilling your income needs Essential (‘must-have’) Lifestyle (‘nice-to-have’) Guaranteed lifetime expenses Should match: Guaranteed lifetime income No allocation until essential income needs are covered. © 2016 RiverSource Life Insurance Company. All rights reserved. 14 Essential vs. lifestyle expenses

Fulfilling your income needs © 2016 RiverSource Life Insurance Company. All rights reserved. 15 What monthly income can you depend on in retirement? If the difference is negative, you have an income gap to fill.

Fulfilling your income needs: an example Sources of income Monthly amount needed for essential expenses Social Security check$2,000 Pension$1,000 Retirement/investment portfolio withdrawal $2,000 Total needed to cover essential monthly expenses $5,000 Total retirement savings = $700, © 2016 RiverSource Life Insurance Company. All rights reserved. Hypothetical example does not reflect any taxes paid.

Guaranteed lifetime income Talk with your financial advisor about solutions that can provide guaranteed income for life. These solutions are flexible to meet your unique needs. © 2016 RiverSource Life Insurance Company. All rights reserved. 17

Summary What we have discussed There are many factors that may affect your potential retirement income. To have a confident retirement, you need a plan that helps ensure your savings will last a lifetime. Your financial professional can help you meet your retirement goals. © 2016 RiverSource Life Insurance Company. All rights reserved. 18

Next steps Plan for tomorrow today Think more about your ideal retirement. Review your essential “needs” in retirement vs. your lifestyle “wants.” Talk with your financial advisor about creating a plan to meet your retirement goals. © 2016 RiverSource Life Insurance Company. All rights reserved. 19

Thank you © 2016 RiverSource Life Insurance Company. All rights reserved. 20 Neither RiverSource Life Insurance Company nor RiverSource Life Insurance Co. of New York can guarantee future financial results.

Disclosures Understanding variable annuities All guarantees are based on the continued claims paying ability of the issuing company and on variable annuities do not apply to the performance of the variable subaccounts, which will vary with market conditions. Variable annuities are long-term investment vehicles designed to help you through each stage of retirement — from accumulating assets, to providing income in retirement, to leaving any remaining wealth to your heirs. With a RiverSource ® variable annuity, you have access to a broad range of carefully selected investment choices from today’s top money managers, plus fixed account options. In return for the benefits they provide, variable annuities carry a mortality and expense fee and subaccount management fees. Other fees may include optional rider fees, surrender charges and an annual contract charge. Surrenders that do not qualify for a waiver may be subject to a surrender charge. Surrenders are subject to income taxes and surrenders before age 59-1/2 may incur an IRS 10% early withdrawal penalty. Before you purchase, be sure to ask your financial professional about the annuity’s features, benefits, risks and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives. Variable annuities are complex investment vehicles that are subject to market risk, including the potential loss of principal invested. Annuities are long-term insurance products. You should consider the investment objectives, risks, charges and expenses of the variable (annuity/life insurance) and its underlying investment options carefully before investing. For a free copy of the (annuity's/life insurance prospectus and underlying investment's prospectus, which contains this and other information about variable (annuities/life insurance), call Read the prospectus carefully before you invest. There is no guarantee that an annuity with the optional rider will keep up with inflation. RiverSource Distributors, Inc. (Distributor), Member FINRA. Issued by RiverSource Life Insurance Company, Minneapolis, Minnesota. Affiliated with Ameriprise Financial Services, Inc. © RiverSource Life Insurance Company. All rights reserved. 21 © 2016 RiverSource Life Insurance Company. All rights reserved.