10 Percent Guaranteed Roll-up Added to Variable Annuity Living
Benefit Means Potential for More Retirement Income
Nationwide Financial Services, Inc. (NYSE: NFS), announced that The
Nationwide Lifetime Income Rider®
(L.inc), an optional living benefit available with certain variable
annuities, will now include a guaranteed annual roll-up of 10 percent,
which will potentially offer consumers even more guaranteed retirement
income from their variable annuity.
The enhancement to Nationwide L.inc, available with new contracts,
increases the guaranteed roll-up from seven to 10 percent, one of the
highest in the industry. This means the income benefit base -- the
amount on which the lifetime income payments are calculated -- is
guaranteed to increase by 10 percent simple interest annually for 10
years or until the first withdrawal, whichever comes first. When
combined with Nationwide L.inc’s competitive
age-based payout rates this could equate to higher income payments for
the consumer.
“With today’s
economic uncertainties, consumers are looking for guaranteed sources of
income, whether it’s to address the rising
costs of health care, increasing inflation, or living longer in
retirement,” said Eric Henderson, senior vice
president of Nationwide Financial’s Individual
Investments Group. “Nationwide L.inc provides
consumers with a stream of lifetime income they can depend on as they
prepare for and enter retirement.”
If the market is flat or down, the new roll-up translates to a
guaranteed 100 percent increase to the income benefit base if the
consumer waits 10 years to take a withdrawal, which provides a cushion
against inflation.
If the market is up and the contract value at any rider anniversary is
higher than the guaranteed minimum value, the contract value will become
the new benefit base. This increases the lifetime withdrawal amount. If
the contract value falls to zero after the first 10 years (and before
the first withdrawal), there will be no further adjustments to the
income benefit base.
Nationwide L.inc is available with certain variable annuities for an
additional cost (0.75 percent of income benefit base assessed annually).
