Nationwide To Launch Full Suite of In-Plan Annuities
- Five new solutions to be introduced late 2020 through 2021
- New solutions will provide protection solutions defined contribution plan participants are looking for amidst “perfect storm” of retirement adversity
- Nationwide is uniquely positioned with in-house annuity and retirement plan businesses and deep industry relationships
Many American savers, having experienced COVID-related market volatility, are waking up the reality that they are facing retirement without the defined benefit pension guarantees enjoyed by previous generations. This has led to growing interest in solutions1 that can protect them from market downturns and provide a stream of guaranteed income in retirement.
The SECURE Act opened a new era of opportunity for retirement plan participants – expanding the ability for plan sponsors to help participants not only plan for retirement, but also live in retirement. One way the Act will help is by making in-plan annuities within defined contribution plans such as 401(k)s and 457(b)s more accessible and portable than before.
To meet this need, Nationwide announced today that it will begin to roll out a suite of new in- plan annuity products and partnerships with industry leaders, including at least five new solutions from late 2020 through 2021.
“We know this is not a one-size fits all problem, and we’re confident that a suite of solutions will give plan sponsors the flexibility to select the option that’s best for their participants,” said Eric Stevenson, President of Nationwide Retirement Plans. “Our approach is unique, by going beyond retirees’ well-established need for guaranteed income, to also address their growing need to protect principal. It’s the combination of both benefits that makes our approach a game-changer for our industry.”
About the Suite
Nationwide’s new suite of products will offer a broad range of solutions to meet the needs of plan participants. In December, Nationwide will introduce a new in-plan Fixed Indexed Annuity to provide principal protection with potential for growth based on the return of an index.
Additionally, in 2021, Nationwide will introduce several in-plan lifetime income options that pair income guarantees with Target Date Funds, all designed to be QDIA (qualified default investment alternative) compliant.
“Similar to a Target Date Fund, we will allow our plan participants to select an investment option and then we’ll take care of the rest of the puzzle by providing a glide path from accumulation into retirement income,” Eric Stevenson said.
Uniquely Positioned to Meet this Need
As an established industry leader serving government and corporate retirement plans, as well as a top provider of annuities, Nationwide is uniquely equipped to address this challenge, with the in-house experience to develop new solutions and deep partnerships across the industry to bring them to market. Nationwide has a track record as an innovator in the in-plan annuity market, serving as an insurance carrier in AllianceBernstein’s multi-insurer solution, Lifetime Income Strategy since 2012.
“By offering a range of guaranteed solutions within the structure of a retirement plan, Nationwide can provide even more customers access to the benefits of guaranteed lifetime income and principal protection that are only available from an annuity,” said Eric Henderson, President of Nationwide Annuity.
1The sixth annual Advisory Authority Survey, conducted by The Harris Poll on behalf of Nationwide from May 27 – June 25, 2020.