Nationwide launches new annuity riders, increases payout percentages on L.inc+ suite
November 14, 2023 by Nationwide
Columbus, OH — The traditional image of life in retirement is changing as fewer employers offer defined benefit pension plans and American savers are increasingly on their own to figure out how to stretch their savings, leaving some wondering if their income will last long enough. Nationwide is addressing this challenge with multiple updates to the Nationwide Lifetime Income Rider+® (L.inc+) suite, a set of riders that offers guaranteed lifetime income with features designed to turn investors’ savings into a predictable stream of income in retirement.
Nationwide’s updates to the L.inc+ suite include the launch of Nationwide L.inc+ Empire and L.inc+ Empire Advisory in New York; an increase to withdrawal rates for L.inc+ Core, L.inc+ Accelerated and L.inc+ Max; and the addition of L.inc+ Core Advisory and L.inc+ Accelerated Advisory to the Nationwide Advisory Retirement Income AnnuitySM (NARIA). These changes provide all advisors, whether commission or fee-based, the same L.inc+ options for their clients, helping set them up for guaranteed income in retirement.
Nationwide L.inc+ Empire and L.inc+ Empire Advisory Launch
- Nationwide L.inc+ Empire and L.inc+ Empire Advisory, the newest additions to the L.inc+ suite exclusively for New York, offer investors guaranteed income that lasts for the rest of their lives – even if their contract value falls to zero. They also allow clients to invest up to 80% in equities.
- L.inc+ Empire replaces L.inc+ Core, L.inc+ Accelerated and L.inc+ Max in New York and is available for an additional cost when added to Nationwide Destination 2.0 variable annuities. L.inc+ Empire Advisory replaces the Nationwide Lifetime Income Rider Advisory (L.inc Advisory) and Retirement Income Developer in New York and is available for an additional cost when added to NARIA.
L.inc+ Core, L.inc+ Accelerated and L.inc+ Max Withdrawal Rates Increase
- Payout percentages are increasing by 5 – 20 basis points at key retirement ages on Nationwide L.inc+ Core, highlighted by a 20-basis point increase for single investors who take their first withdrawal at 65 years old. L.inc+ Core is a rider for clients seeking consistent and predictable retirement income that will not decrease even if their contract value goes to zero.
- L.inc+ Accelerated payout percentages are increasing by 5 – 30 basis points at key retirement ages, highlighted by a 30-basis point increase for single investors who take their first withdrawal at 65 years old. L.inc+ Accelerated is for clients who want more income early in retirement and a wider range of investment options, including the ability to invest 100% in equities, which offer a greater opportunity to capture market growth.
- Payout percentages are increasing by 10 – 20 basis points at key retirement ages on L.inc+ Max, highlighted by a 20-basis point increase for single investors who take their first withdrawal at 65 years old. L.inc+ Max is a rider for clients who expect to need most of their income in the early years of retirement – for example, to bridge an income gap until another source of income, such as Social Security, becomes available. It also allows clients to invest up to 100% in equities.
- These new rates, which are based on the owner’s age when they take their first withdrawal, give financial professionals more options when developing a retirement income plan to meet their clients’ unique needs. They are available on several Nationwide variable annuities, including Nationwide DestinationSM B 2.0, Nationwide Destination All American Gold® 2.0 and Nationwide Destination NavigatorSM 2.0.
L.inc+ Core Advisory and L.inc+ Accelerated Advisory Added to NARIA
- Nationwide remains the top wholesale distributor of Advisory variable annuities1, with the new option to add L.inc+ Core Advisory and L.inc+ Accelerated Advisory to NARIA further solidifying the company’s position as the industry leader in the Advisory space.
- L.inc+ Core Advisory and L.inc+ Accelerated Advisory replace L.inc Advisory and are available for an additional cost when added to NARIA. While they have a similar structure to L.inc Advisory, they offer several enhancements, including greater investment flexibility. Both L.inc+ Accelerated Advisory and L.inc+ Core Advisory offer higher equity exposures, with L.inc+ Accelerated Advisory allowing clients to invest up to 100% in equities.
“A turbulent economy over the past few years is adding to the existing challenges of greater longevity and an eroding retirement safety net for Americans in danger of outliving their retirement savings,” said Mike Morrone, vice president of Nationwide Annuity business development. “One of the upsides of rising interest rates is that they allow us to produce better consumer value on almost all types of annuities – and it’s never been better for lifetime income on variable annuities. For investors who can’t afford to hope for the best in an uncertain future, annuities paired with riders that offer guaranteed income can be a great solution to help them protect their financial future.”
These new rider additions and enhancements reinforce Nationwide’s mission to provide customer-focused solutions, strengthening the L.inc+ suite originally launched in March 2020. The suite allows financial professionals to create tailored income solutions to meet their clients’ unique retirement needs with a variety of payout options, equity exposures and flexible features.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities, mutual funds and ETFs; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.
This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.
Variable products are sold by prospectus. Carefully consider the investment objectives, risks, charges and expenses. The product and underlying fund prospectuses contain this and other important information. Investors should read them carefully before investing. To request a copy, go to nationwide.com/prospectus or call 1-800-848-6331.
When evaluating the purchase of a variable annuity, you should be aware that variable annuities are long-term investment vehicles designed for retirement purposes and will fluctuate in value; annuities have limitations; and investing involves market risk, including possible loss of principal.
A variable annuity is a contract you buy from an insurance company. It’s designed to help accumulate assets to provide income for retirement. It will fluctuate in value based on the performance of the underlying investment options. You should also know that all guarantees and protections of a variable annuity are subject to the claims-paying ability of the issuing insurance company. They don’t apply to the investment performance or safety of the underlying investment options. Underlying subaccounts are only available as investment options in variable insurance contracts issued by life insurance companies. They are not offered directly to the general public.
You may be charged a penalty if you take your money out early, if you’re not yet 59½ (additional 10% tax penalty), or both. Variable annuities have fees and charges that include mortality and expense, administrative fees, contract fees and the expense of the underlying investment options.
Variable annuities are issued by Nationwide Life Insurance, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA, Columbus, Ohio.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide Destination, Nationwide Lifetime Income Rider+, L.inc+ and Nationwide Advisory Retirement Income Annuity are service marks of Nationwide Mutual Insurance Company. © 2023 Nationwide.
1 Wink’s Sales & Market Report 2nd Quarter, 2023. Wink Inc.