To help clients better achieve protected monthly income
COLUMBUS, Ohio – Nationwide recently announced changes to its variable annuity lifetime income rider, Nationwide L.inc, that will increase pay outs for three age groups to help clients better achieve protected monthly income in retirement.
As of August 13, 2018, the company increased single life payout percentages for The Nationwide Lifetime Income Rider® (Nationwide L.inc) to the following:
4.35% to 4.50% for ages 59.5 to 64
5.35% to 5.60% for ages 65 to 69
5.60% to 5.70% for ages 70 to 74
The changes will help provide clients with one of the highest guaranteed lifetime income amounts in the industry1 that will not decrease, even if the contract value drops to zero2.
In June of this year Nationwide became one of the few providers to offer a 70 to 74 age band to its living benefit rider, which gives advisors more flexibility to design a retirement income plan based on their clients’ age and needs.
Higher Income During Retirement
“Research3 from the The Society of Actuaries and LIMRA shows that around age 70 there is a significant increase in the number of people starting income from their annuity so our new age band and competitive payouts can help them achieve a higher income during retirement,” said Eric Henderson, Nationwide’s senior vice president of life insurance and annuities.
Visit nationwidefinancial.com/livingbenefits or call 1-800-321-6064 to learn more.
“We know people are living longer in retirement, sometimes decades, so reliable sources of protected income during those years remains a priority for advisors and their clients,” said Henderson. “In fact, a Nationwide Retirement Institute survey4 found more than one in two of those retired cited having enough money to last through retirement as a top concern, so we know they’re looking for help when it comes to protected monthly income that lasts for their lifetimes.”
Nationwide L.inc is the company’s established living benefit rider, built for investors at or near retirement who are seeking a guaranteed level of income. In addition to the new highly competitive payouts, when added to a Nationwide variable annuity L.inc also includes:
- A 7% simple interest roll-up on the original income benefit base for the first 10 years or until the first lifetime withdrawal, whichever comes first — one of the highest in the industry5
- A Joint Option for continuation of income for either surviving spouse that may be available for an additional cost
- An annual step-up feature that locks in the income benefit base annually at the higher value of the contract value or income benefit base
- Guaranteed lifetime income (excess withdrawals may reduce or terminate the income benefit base; certain restrictions and limitations may apply)
- Investment options that allow clients to customize their portfolio6
1 As of 6/1/18; statistics reported by VARDS on vards.com. This considers guaranteed income for life and excludes competitors that decrease income when the contract value reaches zero.
2 All guarantees are subject to rider terms and conditions. If clients take early, excess, or nonlifetime withdrawals, especially in a down market, loss of income is a possibility. Growth is to the income benefit base and not a cash value that can be withdrawn. Fees are assessed annually on the income benefit base. Maximum cost is 1.50% for Nationwide L.inc and 0.40% for Nationwide L.inc with the Joint Option.
3 Variable Annuity Guaranteed Living Benefits Utilization 2015 Experience Participants Report; A Joint Study Sponsored by The Society of Actuaries and LIMRA.
4 Health Care Costs in Retirement Survey, October 2016, Presented by Harris Poll
5 VARDS, vards.com (Feb. 1, 2017).
6 Only certain investment options are available to contracts with Nationwide L.inc.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.