Retail product offers retirees flexibility and income growth potential with access to funds and built-in guarantees
BOSTON- March 7, 2013 – ING U.S. announced today that it has expanded its lineup of retirement income product and service offerings with the launch of the new ING Lifetime Income single premium deferred fixed annuity issued by ING USA Annuity and Life Insurance Company (ING USA). This retail product provides income benefits to help individuals plan for their retirement including income increases the longer income is delayed, It also allows the flexibility to access those funds when needed (resulting in reduced future income withdrawal amounts) along with death benefit protection.
The ING Lifetime Income deferred fixed annuity is the latest product to complement the long heritage of retirement income solutions and expertise from ING U.S., including an in-plan guaranteed income investment option for 401(k) participants as well as a series of retirement income planning and education resources for ING Financial Partners’ financial advisors. Complementing these retirement income offerings, ING Lifetime Income now brings a retail product solution broadly to the market that is focused on income potential.
“Building a sound, lifetime income strategy is one of the most important aspects of financial planning today, and a key to improving one’s overall retirement readiness,” said Chad Tope, president of ING U.S. Annuity and Asset Sales. “Annuities have been – and continue to be – a reliable way to deliver a reliable income stream during retirement that helps replace a paycheck once a person stops working. ING USA’s new deferred fixed product rewards those who have the ability to postpone their income withdrawals, by stepping up their future available income withdrawal amount. If their needs shift, the individual can access a portion of the funds along the way although this will result in reduced future income withdrawal amounts.”
The opportunity to step up income with the ING Lifetime Income annuity comes in two increments, based on the number of years an individual delays the start of their income withdrawals. If income payments are deferred for five years, the available income withdrawal amount is boosted by 150 percent. With a ten year deferral, the available income withdrawal amount gets a guaranteed boost of 225 percent.
Another feature that offers potential income growth is linked to changes in the S&P 500® Index. If the S&P 500 Index is higher at the end of a contract year than at the beginning, the available income amount increases by this percentage subject to an annual cap on the amount of this increase. The index cap is currently 6 percent and is fixed for the life of the contract. ING may declare a different index cap in the future for new contracts. While there is upside potential, the income amount will not be decreased as a result of a decline in the S&P 500 over the course of the year. The step up benefit and index-linked growth increase the benefit value, which is used to determine the income withdrawal amount only and do not increase the contract’s account value.
The income amount has the potential to grow until lifetime income withdrawals start, at which point the amount is locked in and the income withdrawals will continue for an individual’s lifetime, or the lives of two spouses if there are joint owners. An optional death benefit grows in a similar way, providing protection for beneficiaries and helping with legacy planning.
As an industry leader and advocate for greater retirement readiness, ING U.S. is committed to the mission of making a secure financial future possible — one person, one family, one institution at a time.