Nationwide increases roll-up rate, payout percentage on L.inc+ suite
As inflation continues to rise and the economic environment continues to tighten, Nationwide has announced enhanced rates for the Nationwide Lifetime Income Rider+® (L.inc+) Suite, a set of three riders that offer guaranteed lifetime income with features designed to offer flexibility and stability during market volatility.
“Americans are in real danger of outliving their retirement savings as ongoing volatility compounds the existing challenges of greater longevity and an eroding retirement safety net, but rising interest rates also allow us to pass on greater value to our customers,” said Eric Henderson, president of Nationwide Annuity. “Nationwide’s L.inc+ Suite is designed to provide investors with guaranteed income they can’t outlive, while offering a range of flexible options for their own unique vision of retirement, and we’re excited to be able to offer that with our new competitive rates.”
The suite, which is designed to create tailored income strategies for retirees, will offer increased payout percentages and roll-up rates, which are guaranteed increases applied to the initial investment each year on the rider anniversary.1 These new rates, along with the ability to invest up to 100% in equities with two of the riders, give financial professionals more options when developing a retirement income plan to meet their client’s unique needs.
The Nationwide Lifetime Income Rider+ Core (L.inc+ Core) roll-up rate will be increased by one percentage point to 6%, with payout percentages increasing by 20 - 35 basis points, based on the owner’s age when they take their first withdrawal. L.inc+ Core was designed for clients seeking consistent and predictable retirement income that will not decrease even if their contract value goes to zero.
The Nationwide Lifetime Income Rider+ Accelerated (L.inc+ Accelerated) roll-up rate will be increased by half a percentage point to 6%, with payout percentages increasing by 25 - 50 basis points, based on the owner’s age when they take their first withdrawal. L.inc+ Accelerated was designed 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.
The Nationwide Lifetime Income Rider+ Max (L.inc+ Max) roll-up rate will be increased by one and a half percentage points to 7%. L.inc+ Max was designed 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.
The Nationwide L.inc+ Suite was launched in March 2020, and 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. It can be added at an additional cost to several Nationwide variable annuities, including Nationwide DestinationSM B 2.0, Nationwide Destination All American Gold® 2.0 and Nationwide Destination NavigatorSM 2.0.
1 Roll-up rates are guaranteed increases to the rider’s benefit base and are credited on the first 10 contract anniversaries. The benefit base is used to calculate the annual income offered by the rider.
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.
When evaluating the purchase of a variable annuity, your clients 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. Protections and guarantees are subject to the claims-paying ability of Nationwide Life Insurance Company and do not apply to the investment performance of the variable accounts, which are subject to investment risk.
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.
Variable annuities are issued by Nationwide Life Insurance, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA, Columbus, Ohio.
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