Nationwide Financial Increases Amount of Guaranteed Income Offered Through The Nationwide Lifetime Income Rider® (L.inc)
30 Octobre 2008 - 7:00PM
Business Wire
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). While the
increased annual roll-up is a key benefit, Henderson noted it�s
Nationwide L.inc�s package of features that help investment
professionals meet their clients� needs, including: Lifelong income
continuation for a surviving spouse (optional at a cost of 0.20
percent in addition to the cost of Nationwide L.inc in all states
except New York, where cost is 0.15 percent with original L.inc)
Guaranteed lifetime income through withdrawals of up to seven
percent of an income base that will never decrease due to market
performance even if the contract value does Guaranteed growth with
the potential to beat inflation No waiting � as early as age 45 (57
in New York) consumers can begin withdrawals immediately, which
will lock in their lifetime withdrawal percentage, and can start
and stop the withdrawals at will Market participation that provides
upside potential without complicated choices or fixed investment
restrictions Nationwide L.inc, available across the country,
including the state of New York1, uses a �greater of� value
proposition to help give consumers the potential to beat inflation
and ensure that they receive the highest withdrawals available
according to rider provisions. Guarantees are subject to the
claims-paying ability of Nationwide. When consumers are ready to
begin taking withdrawals, the benefit base used to determine
withdrawal amounts will be whichever is higher: the guaranteed
minimum value that was determined by either the ten-percent annual
roll-ups or the highest contract value on any rider anniversary
date. The higher income benefit base is then multiplied by an
age-based lifetime income percentage to determine the withdrawal
amount. Nationwide L.inc still offers spousal continuation, which
allows the surviving spouse to continue to receive lifetime income
for the duration of his or her life. Henderson said that�s an
important consideration since there�s a 50 percent chance that �
for the average 65-year-old couple2 � one will live to age 92.
�Nationwide L.inc provides true spousal continuation, meaning there
are no interruptions or reductions in the lifetime payments made to
the surviving spouse,� said Henderson. �That�s not always the case
with some spousal continuation options, which may include
restrictions that consumers may not be aware of.� Henderson said
Nationwide L.inc�s flexibility allows consumers to access their
lifetime income stream based on their individual needs and
circumstances, whether that�s as early as age 45 or later on, when
they�ll benefit from a higher withdrawal percentage. Nationwide
L.inc also allows consumers to choose from a variety of model
portfolios, from passive to actively managed, that consist of
various underlying investment options that correspond to the
particular strategy of each model that fit their needs. Henderson
said Nationwide L.inc and Nationwide�s other variable annuity
living benefit, Capital Preservation Plus Lifetime Income� (CPPLI),
provide consumers with two income withdrawal options to choose from
based on their needs. Capital Preservation Plus Lifetime Income,
available at an additional cost of 0.75 percent with certain
variable annuities, provides clients with a way to invest without
risking their principal by providing a guaranteed return of
principal (less applicable charges and withdrawals) in as few as
five, seven or 10 years. After this Capital Preservation phase,
individuals have the flexibility to begin taking guaranteed
lifetime withdrawals, enter another Capital Preservation phase,
annuitize or drop the rider and its fee. �According to research we
conducted with Yankelovich3, more than two-thirds of retirement-age
individuals said making sure their money is safe is their most
important investment goal, and nearly half aren�t certain their
expected retirement income will be sufficient,� said Henderson.
�CPPLI addresses these concerns by combining the security of
principal protection with the potential for growth by staying
invested in the market.� Investment professionals can call their
Nationwide Financial wholesaler or visit
nationwide.com/livingbenefits to learn more. 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.
Variable products are sold by prospectus. The product prospectus
and underlying fund prospectuses from their investment professional
or by writing to Nationwide Life Insurance Company, P.O. Box
182021, Columbus, Ohio 43218-2021. Carefully consider the fund's
investment objectives, risks, charges and expenses. Prospectuses
contain this and other important information. Read the prospectus
carefully before investing. Living benefit riders may not be
available on all Nationwide variable annuities or in all states.
Nationwide variable annuities are issued by Nationwide Life
Insurance Company, Columbus, Ohio. The general distributor is
Nationwide Investment Services Corporation, member FINRA. In MI
only: Nationwide Investment Svcs. Corporation. About Nationwide
Financial Nationwide Financial Services, Inc. (NYSE: NFS), a
publicly traded company based in Columbus, Ohio, provides a variety
of financial services that help consumers invest4 and protect their
long-term assets, and offers retirement plans and services through
both public- and private-sector employers. It�s part of the
Nationwide group of companies, which offers diversified insurance
and financial services. The group is led by Nationwide Mutual
Insurance Company, which is ranked No. 108 on the Fortune 500 based
on 2007 revenue.5 For more information, visit www.nationwide.com.
Nationwide, the Nationwide framemark, On Your Side and The
Nationwide Lifetime Income Rider are federally registered service
marks of Nationwide Mutual Insurance Company. Capital Preservation
Plus Lifetime Income is a federally registered service mark of
Nationwide Life Insurance Company. � 2008, Nationwide Financial
Services, Inc. All rights reserved. 1 Certain restrictions in New
York; please consult a prospectus for further details 2 Annuity
Mortality Table, Society of Actuaries, 2000 3 Nationwide Retirement
Income Confidence Survey, 2007 4 Nationwide Investment Services
Corporation, member FINRA. In MI only: Nationwide Investment Svcs.
Corporation. 5 Fortune Magazine, April 2008
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