“Right now, tax policy is top of mind for advisors, financial professionals and the clients they serve. They’re clearly concerned about taxes affecting their portfolios—and it’s impacting their approach to investing,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “In fact, taxes have consistently been a top financial concern of investors year over year—especially the High Net Worth and Ultra High Net Worth—according to Nationwide’s annual Advisor Authority Study. Working with an advisor can help clients enhance their long-term financial outcomes through a holistic approach to planning and investing for greater tax-efficiency.” 

Taxes Number-One Concern for Clients 
Nearly three fourths (74%) of advisors and financial professionals said tax policy is their clients’ No. 1 concern, among the new administration’s proposed policies. They rated clients’ concerns about all other polices in the single digits, including pandemic relief (9%), health care policy (4%), immigration policy (4%), climate change/green energy policy (3%).  

Likewise, when considering the potential effects of the new administration’s proposed policies, advisors and financial professionals said that their clients’ three biggest financial concerns over the next 12 months, will be taxes (59%), protecting assets (51%) and managing volatility (39%). Taxes far outpaced clients’ other concerns, including generating reliable income during retirement (28%), rising interest rates (20%) and inflation, cost of healthcare and saving enough for retirement (tied at 19%). In fact, nearly two-thirds of Americans (60%) expect their taxes to increase in the next four years, according to the recent 2021 Nationwide Retirement Institute®(NRI) Tax-Efficient Retirement Income Survey.  

Taxes Top Factor Impacting Portfolios and Investing 
Nearly nine in ten (88%) advisors and financial professionals said that their clients want to discuss the impact of tax policy on their investments and financial plans. Clients’ interest in discussing the impact of taxes significantly exceeds all other proposed policies, including immigration policy (44%), climate change/green energy policy (42%), pandemic relief (38%) and health care policy (36%).  

Asked to choose the single most important macro issue that will adversely impact their clients’ portfolios over the next 12 months, advisors and financial professionals rated taxes first (32%), with US Federal Budget Deficit a distant second (12%), while ongoing volatility and the COVID-19 pandemic tied for third (11%). The impact of gridlock in Washington (9%), inflation (8%) and a range of other factors were all rated in the single digits. 

Advisors and financial professionals also said say tax policy (53%) will be the No. 1 trend that will impact their approach to investing, with domestic economic performance and political/social discord in the US tied for a distant second (30%) and inflation third (27%). Because of the impact of the new administration’s proposed policies, one-third of advisors and financial professionals (33%) say they’ll invest more conservatively in 2021, and 10% say they’ll invest more aggressively. While 44% say they’ll invest about the same, another 10% say the administration’s policy will not impact how they invest.  

Concerns about Market, Economy and Advisory Practice 
While many positive factors driving markets remain in place, including vaccine optimism, the economic reopening and accelerating earnings, most advisors and financial professionals are concerned that the impact of new administration’s proposed policies could lead to a US bear market over the next 12 months, with 21% very concerned and 40% somewhat concerned. Only 30% say they are not very concerned and just 9% are not at all concerned. 

Likewise, while many experts suggest that a booming recovery is gaining momentum, most advisors and financial professionals are concerned that the impact of new administration’s proposed policies could lead to a US economic recession over the next 12 months, with 20% very concerned and 40% somewhat concerned. Only 31% say they are not very concerned and just 10% say they’re not at all concerned.  

Additionally, most advisors and financial professionals believe the new administration’s proposed regulatory changes to the financial services industry will negatively impact their practice over the next 4 years. In fact, 31% say it will have a very negative impact and 41% say it will have a somewhat negative impact. Only 19% say it will have no impact, while 6% say it will have a somewhat positive impact and just 3% say it will have a very positive impact. 

When asked what one thing they’d want to know with absolute certainty over the next 4 years, advisors and financial professionals said US equity market performance (39%) far outranks all other options. US economic performance (19%) was a distant second and the trajectory and timing of the resolution of the pandemic (14%) was third.  

Survey Methodology:
This Washington Impact Survey of more than 200 advisors and financial professionals was conducted online by Nationwide, March 2021 – May 2021.

With the addition of two exclusive new indices, BlackRock Select Factor Index and SG Macro Compass Index, plus the S&P 500^® Average Daily Risk Control 10% USD Price Return Index, Nationwide DPA’s index lineup now includes a total of seven complementary global and domestic indices, to better meet the goals and risk tolerances of conservative to moderate clients who are approaching or living in retirement.

Unique Combination: Expanded Index Lineup plus Floor Structure
DPA is uniquely positioned by offering this broad range of indices in combination with a floor structure that provides three defined protection levels which limit negative performance. This allows clients to select how much of their investment—90%, 95% or 100%—will be protected from market losses and helps determine their performance opportunities.

“For clients who are concerned about significant losses, but still need growth potential, Nationwide’s Defined Protection Annuity is uniquely designed to help capture and lock in earnings, with a defined level of protection to limit their losses, and the flexibility to reset new allocations for future growth potential—as well as to adjust as their risk tolerance changes over time,” said Eric Henderson, president, Nationwide Annuity at Nationwide Financial. “Expanding the DPA index lineup of complementary global and domestic indices, including two exclusive new indices, helps meet an even broader range of clients’ goals and risk tolerance, so they can balance the right level of protection they need with the greater growth potential they want.”

“Nationwide’s Defined Protection Annuity gives financial professionals a solution to help address clients’ complex challenges in this ongoing low interest rate environment, by offering an expanded lineup of seven indices combined with a floor structure, to provide a unique balance of performance potential and defined protection,” said Craig Hawley, Head of Nationwide’s Annuity Distribution. “Year over year, investors consistently say that protecting assets is a top financial concern, and more than half would feel more secure if a portion of their assets were invested in an annuity to protect assets against market risk, according to Nationwide’s sixth annual Advisor Authority study.”

Three New Indices: Rounding Out Robust Lineup
Exclusive to Nationwide is the dynamic BlackRock Select Factor Index from BlackRock, currently the world’s largest asset manager. The index seeks to deliver a diversified multi-asset exposure and targets five equity style factors each backed by academic research. The index dynamically adjusts factor holdings to emphasize attractive opportunities and targets a consistent level of volatility with a focus on stability during market extremes.

Also exclusive to Nationwide, the dynamic SG Macro Compass Index is from leading European financial services group Societe Generale. The global multi-asset index seeks to identify expected changes in economic growth and inflation to forecast the market environment and make strategic allocations based on the forecast.

The third new addition is the S&P 500^® Average Daily Risk Control 10% USD Price Return Index, a traditional index option that seeks to limit the volatility of the S&P 500^® to a target level of 10% by allocating to cash based upon an algorithm. From leading index provider Standard & Poor’s, the index helps to reduce exposure to dramatic fluctuations that can occur during unstable market conditions.

These three new indices round out an already robust lineup of index strategies that can offer upside potential and be tailored to fit a broad range of investment objectives. This includes traditional equity indices S&P 500^® Price Index and MSCI EAFE, as well as multi-asset indices NYSE^® Zebra Edge^® Index and J.P. Morgan Mozaic II℠ Index.

Financial professionals interested in the Nationwide Defined Protection Annuity should contact their Nationwide wholesaler or call the National Sales Desk at 800-321-6064. Individual investors interested in learning more about the benefits of defined protection, should contact their financial professional and visit www.definedprotection.com.

Nationwide Defined Protection is an individual single purchase payment deferred annuity with index-linked strategies issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA. Please note, the contract does not directly participate in any stock or equity investments. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% early withdrawal federal tax penalty. The contract prospectus contains information about the contract’s features, risks, charges, and expenses. Prospectuses are available from Nationwide. Clients should read the prospectus carefully before investing.

When evaluating the purchase of an annuity, your clients should be aware that annuities have limitations. They are long-term vehicles designed for retirement purposes. They are not intended to replace emergency funds, to be used as income for day-to-day expenses or to fund short-term savings goals. Please read the contract for complete details. Withdrawals are subject to income tax, and withdrawals before age 59½ may be subject to a 10% early withdrawal federal tax penalty.

Guarantees and protections referenced within are subject to the claims-paying ability of Nationwide Life Insurance Company.

Nationwide Defined Protection Annuity does not directly participate in any stock or equity investments or index. It is not possible to invest directly in an index. Please consult the prospectus for more information on the available index options.

The BlackRock Select Factor Index (“Index”) is a product of BlackRock Index Services, LLC and has been licensed for use by Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (“Licensee”). BlackRock^®, BlackRock Select Factor Index and the corresponding logos are registered and unregistered trademarks of BlackRock. This Product is not sponsored, endorsed, sold or promoted by BlackRock Index Services, LLC, BlackRock, Inc., or any of its affiliates, or any of their respective third party licensors (including the Index calculation agent, as applicable) (collectively, “BlackRock”). BlackRock has no obligation or liability in connection with the administration or marketing of this Product. BlackRock makes no representation or warranty, express or implied, to the owners of this Product or any member of the public regarding the advisability of investing in this Product or the ability of the Index to track general market performance. BlackRock does not guarantee the adequacy, accuracy, timeliness, and/or completeness of the Index or any data or communication related thereto nor does it have any liability for any errors, omissions or interruptions of the Index.

The product referred to herein is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such product or any index on which such product is based. The Contract contains a more detailed description of the limited relationship MSCI has with Nationwide and any related funds.

The SG Macro Compass Index (the “SG Index”) is the exclusive property of SG Americas Securities, LLC (together with its affiliates, “SG”). SG has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) (“S&P”) to maintain and calculate the SG Index. “SG Americas Securities, LLC”, “SGAS”, “Société Générale”, “SG”, “Société Générale Indices”, “SGI”, and “SG Macro Compass Index” (collectively, the “SG Marks”) are trademarks or service marks of SG. The SG Index has been licensed to Nationwide Life Insurance Company (the “Licensee”) for use in the Nationwide Defined Protection^® Annuity (the “Product”). SG’s sole contractual relationship with the Licensee is as licensor of the SG Index and the SG Marks. SG has no obligation to make payments under the Product. None of SG, S&P or other third-party licensor (collectively, the “SG Index Parties”) to SG is acting, or has been authorized to act, as agent of the Licensee or has sponsored, promoted, solicited, negotiated, endorsed, offered, sold, issued, supported, structured or priced any Product or provided investment advice to the Licensee. The SG Index Parties make no representation or warranty, express or implied, to investors in the Product and hereby disclaim all warranties (including, without limitation, those of merchantability or fitness for a particular purpose or use): (a) regarding the advisability of investing in any products linked to the SG Index or (b) the suitability or appropriateness of an exposure to the SG Index in seeking to achieve any particular objective, including meeting its stated target volatility. No SG Index Party shall have any responsibility or liability for any losses in connection with the Product, including with respect to design, issuance, administration, actions of the Licensee, marketing, trading or performance of the Product. SG has not prepared any part of this document and no statements made herein can be attributed to SG. SG does not act as an investment adviser or provide investment advice in respect of the SG Index or the Product and does not accept any fiduciary or other duties in relation to the SG Index, the Licensee, the Product or any investors in the Product. SG shall have no liability for any act or failure to act in connection with the determination, adjustment or maintenance of the SG Index. Without limiting the foregoing, SG shall have no liability for any damages or lost profits, even if notified of the possibility of such damages. In calculating the daily performance of the SG Index, SG deducts fixed transaction and replication costs that cover, among other things, rebalancing and replicating the SG Index. The total amount of these embedded costs is unpredictable and depends on numerous factors, including leverage of the SG Index, which may be as high as 200%, performance of indexes underlying the SG Index, market conditions and changes in the macro regimes, among other factors. The embedded costs, which are increased by the SG Index’s leverage, will reduce the performance of the SG Index. The volatility control applied by the SG Index may also reduce the overall return.

S&P 500 Average Daily Risk Control 10% USD Price Return Index (“S&P 500 Average Daily Risk Control USD Price Return Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by Nationwide. Standard & Poor’s^® and S&P^® are registered trademarks of Standard & Poor’s Financial Services (“S&P”); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Nationwide. The Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Average Daily Risk Control 10% USD Price Return Index.

The “S&P 500” is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Nationwide Life Insurance Company (“Nationwide”). Standard & Poor’s^®, S&P^® and S&P 500^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); DJIA^®, The Dow^®, Dow Jones^® and Dow Jones Industrial Average are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Nationwide. the Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500.

The J.P. Morgan Mozaic II℠ Index (“Index”) has been licensed to Nationwide Life Insurance Company (the “Licensee”) for the Licensee’s benefit. Neither the Licensee nor Nationwide Defined Protection Annuity, (the “Product”) is sponsored, operated, endorsed, recommended, sold or promoted by J.P. Morgan Securities LLC (“JPMS”) or any of its affiliates (together and individually, “JPMorgan”). JPMorgan makes no representation and gives no warranty, express or implied, to contract owners taking exposure to the Product. Such persons should seek appropriate professional advice before making any investment. The Index has been designed and is compiled, calculated, maintained and sponsored by JPMS without regard to the Licensee, the Product or any contract owner. JPMorgan is under no obligation to continue compiling, calculating, maintaining or sponsoring the Index. JPMorgan may independently issue or sponsor other indices or products that are similar to and may compete with the

Index and the Product. JPMorgan may also transact in assets referenced in the Index (or in financial instruments such as derivatives that reference those assets). These activities could have a positive or negative effect on the value of the Index and the Product.

The NYSE^® Zebra Edge^® Index has been licensed by ICE Data Indices, LLC (together with its subsidiaries and affiliates, “ICE Data Indices”) to UBS AG and sub-licensed by UBS AG (together with its subsidiaries and affiliates, “UBS”) to Nationwide Life Insurance Company (“Nationwide”). Neither Nationwide nor the Product is sponsored, operated, endorsed, recommended, sold or promoted by Zebra Capital Management, LLC (together with its subsidiaries and affiliates, “Zebra”), ICE Data Indices or UBS and in no event shall Zebra, ICE Data Indices or UBS have any liability with respect to the Product or the Index. Zebra, ICE Data Indices and UBS make no representations, give no express or implied warranties and have no obligations with regard to the Index, the Product, the client or other third party.

The mark NYSE^® is a registered trademark of NYSE Group, Inc., Intercontinental Exchange, Inc. (“ICE”) or their affiliates and is being utilized by ICE Data Indices under license and agreement. The marks Zebra^® and Zebra Edge^® are registered trademarks of Zebra Capital Management, LLC, may not be used without prior authorization from Zebra Capital Management, LLC, and are being utilized by ICE Data Indices under license and agreement.

Neither Nationwide nor any of its associated subsidiaries are affiliated with Annexus.

Nationwide, the Nationwide N and Eagle, Nationwide is on your side, and Nationwide Defined Protection® are service marks of Nationwide Mutual Insurance Company.© 2021 Nationwide

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Conducted by The Harris Poll on behalf of The Nationwide Retirement Institute®, the study also found one-fourth (27%) of Americans have saved less or stopped saving for retirement because they lost their job or for other reasons. In result, almost two-in-five Americans (37%) have or are likely to withdraw money from their retirement plan early because of the pandemic, and this percentage is even higher for millennials at 58%.

Overall, the study reveals younger adults have struggled with navigating their finances the most, with 62% of millennials and 51% of Gen Xers saying the pandemic has made their finances more complicated, compared to 27% of boomers.

“COVID-19 has many Americans feeling financially insecure — especially younger ones,” said Eric Henderson, president of Nationwide’s Annuity business. “This presents an opportunity for financial professionals to not only get clients back on track, but ensure they have the right tools and education on topics like taxes in retirement, which can get them closer to their long-term goals.”

The Education Gap on Taxes in Retirement
COVID-19 has put a needed spotlight on the critical role tax planning plays in reaching those long-term goals. Almost half (47%) of Americans expect their taxes to go up significantly in the next four years and the majority (62%) agree it’s more important than ever to minimize taxes now than in retirement. They’re right to be vigilant — 42% of retirees say they didn’t consider how tax rates would affect their retirement income when planning for retirement and now 36% are terrified of what tax rates will do to their retirement income.

While most Americans agree they should minimize their taxes now, the challenge is many aren’t financially savvy enough to do this on their own — especially today. Forty-two percent of all respondents say their taxes have become more complicated as a result of COVID-19, and this percentage jumps to 58% for millennials. Only 58% of adults surveyed know how to use tax planning to get the desired outcome they want from the IRS during tax season.

“The worries retirees have about taxes in retirement should serve as a warning to non-retirees. Too many Americans aren’t considering or knowledgeable about building flexibility into a retirement income plan and this can have costly repercussions down the road,” said Henderson. “There’s an opportunity to bridge the education gap on how different investment and retirement vehicles, such as taxable, tax-deferred and tax-free accounts, can help effectively manage retirement income.”

The Opportunity for Financial Professionals
The good news is many Americans are eager to seek help from a financial professional on this topic, especially millennials. Nearly half of millennials (48%) and one-third of Gen Xers (32%) engaged a financial planner for the first time due to the pandemic, compared to 12% of boomers.

However, the challenge is more than half of Americans (57%) rarely consider the taxes they will pay or are paying in retirement and 31% aren’t receiving the tax advice they need for retirement. There is an immediate opportunity for financial professionals to address this need, with half (50%) of Americans reporting they’d switch financial professionals for someone who could help them plan for taxes in retirement.

More specifically, Americans would like advice on how to receive a tax benefit from itemizing (46%) and how to adjust investments in case of potential increases in capital gains taxes (42%). Another two-in-five (42%) would also like to get professional advice on how to use annuities and life insurance products that may be less impacted by any increases in capital gains taxes.

“The survey shows consumers aren’t receiving the tax planning help they need for retirement, and as a result, they may be paying thousands of dollars more than needed,” said Henderson. “Financial professionals have a major gap to fill in educating clients on the best strategies to reduce unexpected taxes on combined income resources. By taking a holistic approach to financial planning, professionals can help more Americans save and achieve the retirement they want.”

To learn additional insights from Nationwide Retirement Institute’s Tax-Efficient Retirement Income survey, visit www.nationwide.com/lc/resources/investing-and-retirement/articles/tax-efficiency-survey-results.

Methodology
Nationwide commissioned The Harris Poll to conduct a 4-question online survey among 3,002 U.S. residents ages 18 and over. Millennials are comprised of respondents 25-40, Gen Xers are respondents 41-56 and boomers are 57+. Online fieldwork was completed between March 9 — 11, 2021.

Respondents for these surveys were selected from among those who agreed to participate in surveys by The Harris Poll. Because the sample is based on those who agreed to participate in the online panel, no estimates of theoretical sampling error can be calculated. Data are weighted where necessary by age by gender, race/ethnicity, region, education, income, marital status, and propensity to be online to bring them in line with their actual proportions in the population.

About The Harris Poll
The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 and is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.

With the addition of multiple client-centric enhancements to Nationwide New Heights Select, the popular product suite continues to evolve to provide more choice and greater client value. These latest additions include two new indices, new bucketing capabilities for greater diversification, highly competitive accumulation opportunities and increased lifetime income payout percentages on one of the optional income riders.

“As interest rates remain near record lows, while concerns about volatility run high and the cost of living in retirement continues to rise, investors face a complex challenge. They need solutions to help them grow and protect their retirement savings—as well as a guaranteed income stream to protect their lifestyle in retirement,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “Nationwide New Heights Select fixed indexed annuity has been enhanced to provide pre-retirees with greater growth potential and principal protection at a time when they need it the most, while also providing a guaranteed source of retirement income they can’t outlive.”

Two New Indices for Greater Diversification and Growth Opportunity
New Heights® Select offers growth opportunity with strategy options that track the performance of an index and lock in earnings at the end of each strategy term. Now, for even greater diversification, new bucketing capabilities allow a clients’ contract value to be allocated among up to five strategy options, including two new indices.

Nationwide New Heights Select now offers the SG Macro Compass Index, one of the first global multi-asset indices in an FIA that utilizes the current economic outlook to determine its asset allocation. It has the ability to adapt to current market conditions by pivoting and leaning into growth assets when markets are bullish and defensive assets when markets are bearish. The methodology leverages the expertise of Societe Generale’s Quantitative Research team. It is rooted in the deep academic research of macroeconomic regimes created by Dr. Solomon Tadesse who is an experienced investment executive and seasoned thought leader.

Nationwide New Heights Select has also added the NYSE® Zebra Edge® II Index, based on a methodology developed by economist Professor Roger G. Ibbotson and his team at Zebra Capital Management, and founded on Ibbotson’s behavioral finance research. It uses his behavioral finance filtering process to evaluate the 500 largest publicly traded companies in the United States each quarter, and then removes the riskiest and most volatile companies to identify equities with the potential for higher returns with less risk.

“While guaranteed income is crucial for clients, advisors evaluating guaranteed income FIAs should also consider many other factors. The opportunity cost of selling a product with poor growth potential is simply too risky,” said Annexus co-founder Don Dady. “It’s always important to also give your clients the greatest opportunity for growth potential, to provide flexibility if their plans change and they don’t choose to trigger income.”

Annexus Co-Founder Ron Shurts added, “For Nationwide New Heights Select, the addition of these two new indices, bucketing strategies for greater diversification and the increase of the lifetime withdrawal percentages are significant enhancements to an already successful suite of products, providing the potential for higher annual returns and more guaranteed income.”

Guaranteed Income for Life with Bonus Features
Nationwide New Heights Select offers two optional living benefit riders available for an additional charge, to create a source of guaranteed income for life. The Nationwide High Point 365® Select Lifetime Income rider with Bonus now offers higher lifetime payout percentages with the flexibility for earlier withdrawals. It includes a bonus of 10% of a client’s purchase payment added to their Minimum Income Benefit Value at contract issue². In addition, the Minimum Income Benefit Value will continue to grow daily at a 7% compound annual rate until the earlier of 10 years or until beginning lifetime income withdrawals, whichever comes first³. By year 10, the Minimum Income Benefit Value is guaranteed to at least double. All protections and guarantees are backed by the claims paying ability of Nationwide Life and Annuity Insurance Company.

For more information on Nationwide New Heights® Select, including the enhanced diversification of asset classes and allocation strategies, highly competitive accumulation opportunities and optional income riders, contact your Nationwide wholesaler, Annexus-affiliated independent distribution company or visit www.NationwideNewHeights.com.

¹Source: Analysis of Beacon, 3Q 2020 report. Best-selling guaranteed income FIA YTD through 9/30/2020. Interpretation of “Income FIA with a guaranteed roll-up” includes any fixed indexed annuity with a Guaranteed Lifetime Withdrawal Benefit rider that features a guaranteed rollup on the income base. Riders or products in which lifetime income is entirely based on potential index growth rather than guaranteed growth through a roll-up are excluded.

²A 10% bonus calculated on the purchase payment, will be added to the Minimum Income Benefit Value at contract issue

³This assumes that no withdrawals are taken.

American workers see great value in products that provide guaranteed income in retirement, according to participants in a consumer study on this topic¹. More than seven in 10 surveyed said they would use a guaranteed income product if offered in their employer-sponsored retirement plan. The same number said these solutions would make it easier to budget their money in retirement, and they would feel more confident in preparing for retirement. Plan participants are also focused on protecting their savings from market volatility — as a result of the financial impacts of COVID-19, half of retirement savers are more concerned about future market volatility than they were before the pandemic².

“Working together with our retirement industry partners, we developed the ‘Income America’ consortium to offer a defined contribution solution that helps plan participants concerned about outliving the money they’ve set aside for retirement,” said American Century Investments President and Chief Executive Officer Jonathan Thomas. “Our recent 2020 Retirement Plan Participant study indicates that more than 80 percent of participants would keep their assets in their retirement plan if they had an income option. We believe Income America provides an innovative approach to helping more people achieve a successful and comfortable retirement.”

How Income America Works
Income America is a series of portfolios built on a target date glide path designed by American Century and held in a portable, non-proprietary, multi-manager Collective Investment Trust (CIT). It is available as both a traditional series of target date portfolios, Income America, and as a companion series of target date portfolios with an in-plan Guaranteed Lifetime Withdrawal Benefit (GLWB), known as Income America 5ForLife. Either series can be used as a plan’s QDIA. The pricing power of the consortium firms allows Income America to deliver a cost-effective Collective Investment Trust vehicle, resulting in lower fees for participants. Income America 5ForLife is designed to be SECURE Act-compliant and to meet ERISA 404 and 3(38) fiduciary requirements, relieving plan sponsors of liability for the screening of GLWB providers, fund managers, stable value managers and glide path managers. Both Income America series are competitively priced and Income America 5ForLife is portable among major recordkeepers where Income America 5ForLife is available. Both series are fully liquid, and participants can withdraw their Income America account balance from the series at any time without penalty.

“By partnering on this important new solution, we look forward to continuing to help retirement plan participants not just understand how to save for the retirement they envision, but help them take those savings and translate them into a monthly check that will last through retirement,” said Jamie Ohl, Executive Vice President, President, Workplace Solutions, Head of Life & Annuity Operations, Lincoln Financial Group. “As more Americans rely on their workplace retirement plan as their primary savings vehicle, it is more important than ever that we focus on the outcomes that will help them build financial security — because in planning for retirement, the ultimate outcome is income.”

By offering Income America 5ForLife in their retirement plan, employers can help ensure their employees will have access to a protected, guaranteed stream of income in retirement, giving them more confidence in their financial futures. When a plan participant moves accumulated retirement assets to Income America 5ForLife, the initial value of the account plus ongoing contributions (less withdrawals) establish an “income base” on which an annual five percent guaranteed lifetime payment will be based once the income feature is activated when the participant reaches age 65 or older. If the market value of the participant’s account has appreciated and is more than the sum of net contributions at age 65, the income base will “step up” to the higher market value amount (a one-time event) when the participant turns age 65. Alternatively, if the market value of the account at age 65 is lower than the amount of net contributions to date, the income base that determines the payout amount will remain set at the net contribution level. A joint option is also available but will lower the payout percentage.

“Income America 5ForLife is the latest solution that leverages our expertise as a top distributor of retirement plans and a leading insurer of in-plan guarantees, to provide plan sponsors and their participants with a simple, low cost, portable solution to meet their retirement income needs,” said Eric Henderson, president of Nationwide Annuity. “According to Nationwide’s recent Advisor Authority study, demand is strong, with two-thirds of Millennial investors and Gen X investors indicating they are likely to incorporate in-plan guarantees within their qualified retirement plans.”

Prime Capital Investment Advisors Chairman Scott Colangelo said, “We are honored to consult with this diverse group of contributors on the initial product design. Given the strong interest in these solutions, we expect advisors and plan participants to gravitate toward Income America’s unique offering.”

Consortium Member Roles and Responsibilities

• American Century Investments: Target date glide path provider and underlying fund manager; firm’s glide path is designed to provide greater certainty of outcomes for a broader number of participants
• Lincoln Financial Group and Nationwide: Stable value fund management; recordkeeping platform providers; guaranteed income providers with S&P life insurance company ratings of A or better
• Prime Capital Investment Advisors: Product consultant responsible for product design, including sourcing consortium partners and providing the investment universe for Income America 5ForLife

In addition to the primary consortium participants, other prominent retirement industry firms involved with Income America include:

• Fidelity Investments, Vanguard, and Prudential: Serve as underlying fund managers
• SS&C Technologies: Provides the Retirement Income Clearing and Calculation Platform (RICC), a middleware application designed to facilitate the efficient distribution and servicing of in-plan guaranteed income products across various recordkeepers and participating insurers.
• Wilmington Trust: Serves as trustee of the collective investment trust and ERISA 3(38) investment manager fiduciary
• Wilshire: Investment advisor fiduciary under ERISA 3(21) responsible for recommending the glide path manager, GLWB providers, underlying fund products and stable value offerings to the trustee from an investment universe selected by the product consultant for each category

About American Century Investments
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting research that can improve human health and save lives. Founded in 1958, American Century Investments’ 1,400 employees serve financial professionals, institutions, corporations and individual investors from offices in New York; London; Hong Kong; Frankfurt; Sydney; Los Angeles; Mountain View, Calif.; and Kansas City, Mo. Jonathan S. Thomas is president and chief executive officer, and Victor Zhang serves as chief investment officer. Delivering investment results to clients enables American Century Investments to distribute over 40 percent of its dividends to the Stowers Institute for Medical Research, a 500-person, non-profit basic biomedical research organization. The Institute owns more than 40 percent of American Century Investments and has received dividend payments of $1.7 billion since 2000. For more information about American Century Investments, visit www.americancentury.com.

About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $303 billion in end-of-period account values as of December 31, 2020. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ World’s Best Employers, Best Large Employers, Best Employers for Diversity, and Best Employers for Women, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

About Nationwide
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 and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow the firm on Facebook and Twitter.

About Prime Capital Investment Advisors
Prime Capital Investment Advisors provides a client-centric team approach to full-service financial planning, including fee-based asset management and wealth management through its Prime Capital Wealth Management brand. PCIA currently has 26 locations throughout the United States, with investment advisor representatives serving clients across the nation. Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a Registered Investment Adviser. For more information, visit www.pciawealth.com.

About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

About Wilshire
Wilshire Advisors LLC is a leading global investment technology and advisory company, dedicated to improving outcomes for investors worldwide. Founded in 1972, Wilshire advises on over $1.1 trillion in assets and manages $76 billion in assets. Specializing in innovative investment solutions, consulting services and multi-asset analytics, Wilshire serves more than 500 institutional and intermediary clients worldwide, delivering a high quality, coordinated platform of client-centric investment solutions that leverage the entire firm’s resources to the maximum benefit of our clients. More information on Wilshire can be found at www.wilshire.com.

About Wilmington Trust
Wilmington Trust, N.A. provides corporate and institution services including institutional trustee, retirement plan, agency, asset management, and administrative services for clients worldwide who use capital markets financing structures. Wilmington Trust provides directed trustee, custody, and fiduciary services for retirement plans, companies, foundations, organizations, and financial institutions. Wilmington Trust also provides Wealth Advisory services with a wide array of personal trust, financial planning, fiduciary, asset management, and family office solutions designed to help high-net-worth individuals and families grow, preserve and transfer wealth. Wilmington Trust maintains offices throughout the United States and internationally in London, Paris, Dublin, and Frankfurt. For more information, visit www.WilmingtonTrust.com.

*Guarantees are subject to the claims-paying ability of the issuing companies. The income guarantee is based on the income base at age 65, which is set to the greater of the market value or total contributions (less withdrawals) to date. The market value of the account is never guaranteed and fluctuates based on investment performance. While the market value of the account can be withdrawn at any time without any fees or penalties, doing so will cause the loss of the income guarantee.

American Century Investments® provides underlying sub-asset class and target date glide path

management as well as marketing support for Income America.

©2021 Income America, LLC

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¹ Consumer Opinions on In-Plan Guaranteed Income Investment Options, Lincoln Financial COVID-19 Sentiment Tracking Study, September 2020

² Lincoln Financial & CivicScience Protection Survey. Data gathered by CivicScience: 6/18/2020 – 6/25/2020

“According to our latest Advisor Authority study, protecting against market losses due to COVID-19 is investors’ number-one financial concern, with protecting assets a close second, and managing volatility third,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “Our new Nationwide Peak 10 fixed indexed annuity is an effective solution to help mitigate downside risk while still providing growth potential, especially for those clients nearing retirement, at a time in their financial lifecycle when losses can be hard to recoup and every basis point of performance counts.”

Nationwide’s Peak 10 fixed indexed annuity is designed to help manage a low interest rate environment, while providing upside potential with principal protection, to guarantee that investors won’t lose any of their initial investment or credited earnings due to the performance of underlying indexes. Nationwide Peak 10 gives advisors and their clients choice and flexibility with a unique combination of features to manage today’s complex markets. These include two exclusive new indexes, a choice of two tailored options for guaranteed lifetime income, and the flexibility of penalty-free access to assets through certain withdrawals and waivers.

“AmeriLife is committed to providing Americans with peace of mind and offering insurance and retirement planning solutions to help them live longer, healthier lives,” said Mike Vietri, Chief Distribution Officer. “We’re thrilled to be the exclusive distribution partner offering the new Nationwide Peak 10 fixed index annuity, and look forward to working with our distribution to educate consumers on the unique features this product can provide in helping pre-retirees and retirees across the country plan for their future.”

Denny Southern, AmeriLife President of Annuities and Retirement Planning Brokerage Distribution added, “We are honored to partner with Nationwide, in offering a financial solution with unique indexing options and very attractive Lifetime Income features. Nationwide’s Peak 10 provides consumers with protection of their hard-earned money, with upside growth potential.”

Two Exclusive New Indexes
Nationwide Peak 10 offers a fixed account and diverse lineup of four indexes, including two exclusive new indexes from leading financial institutions J.P. Morgan and AllianceBernstein. The J.P. Morgan Cycle℠ Index, exclusively available within Nationwide Peak 10, seeks to outperform the market, allocating to stocks and bonds, with an equity allocation that rotates between different “smart beta” factors based on the business cycle. The AllianceBernstein Growth and Value Balanced Index,℠ currently available only in Nationwide Peak 10, seeks to generate consistent returns while maintaining balance to navigate changing markets, with equity and-fixed income sleeves within a single portfolio which is managed to a modest 5% annualized volatility target using a risk-controlled process.

Nationwide Peak 10 also offers the S&P 500® Price Index and the S&P 500® Daily Risk Control Index. The Nationwide Peak 10 fixed account and all four indexes include a diverse range of crediting options. One-year terms are available for the fixed account and index cap crediting options. Two-year terms are available for index participation crediting options. Investors may allocate assets in up to five account options¹.

Two Options for Guaranteed Income for Life
Americans today can spend decades living in retirement, and according to Nationwide’s sixth annual Advisor Authority study, 54% of investors are likely to choose an annuity to protect against outliving their savings. Nationwide Peak 10 gives investors a choice between two options that provide a steady stream of income that’s guaranteed for life—even if their contract value falls to $0².

Guaranteed Income Solution, available at no additional cost, offers a guaranteed 4% simple interest roll-up rate on the investor’s original Income Benefit Base each year for the first 10 years or until the first withdrawal, whichever comes first. Bonus Income+ Rider, an enriched living benefit available for an additional cost, offers a 10% bonus credit included on the investor’s Income Benefit Base, calculated on total premium, and also offers a 7% simple interest roll-up rate on the Income Benefit Base for the first 10 years or until the first lifetime withdrawal, whichever comes first. Bonus Income+ Rider also provides a joint income option for spouses.

Flexibility to Access Assets
Nationwide Peak 10 also offers investors certain options to access their assets with no surrender charges or market value adjustment. This includes a free withdrawal of up to 10% of their contract value³. A long-term care or confinement waiver⁴ and a terminal illness or injury waiver⁵ are also available. In addition, Nationwide Peak 10 is RMD-friendly, even if required minimum distributions exceed 10% of the investor’s contract value⁶.

Nationwide Peak 10® Fixed Indexed Annuity will be available to consumers through financial professionals across the U.S., exclusively through AmeriLife’s national distribution network of over 200,000 insurance agents and advisors, more than 35 marketing organizations, and over 50 insurance agency locations.

Financial professionals interested in Nationwide Peak 10® Fixed Indexed Annuity should contact their IMO marketer. Individual investors interested in learning more about the benefits of Nationwide Peak 10® Fixed Indexed Annuity should contact their financial professional or visit https://NationwideFinancial.com/Peak10.

¹ An account option is the fixed account, or the combination of an index + crediting option.

² All guarantees are backed by the claims paying ability of Nationwide Life and Annuity Insurance Company.

³ Distributions prior to age 59½ may be subject to a 10% early withdrawal federal tax penalty.

⁴ 100% of the contract may be withdrawn penalty free if contract owner is confined to a nursing home for a continuous 90-day period; confinement must begin after the contract is issued and may not be available in all states; maximum issue age is 80

⁵ 100% of the contract value may be withdrawn penalty free after the first contract year if terminal illness or injury is diagnosed after the contract is issued; maximum issue age is 80; not available in NJ; in CT, available only after the second contract anniversary.

⁶ Money withdrawn from the index account during the index term will forfeit potential earnings that would have been credited at the end of the term.

A recent Nationwide Advisor Authority study¹ found that the number-one financial concern of investors was losses in their portfolio related to COVID-19. As a result of this year’s market turbulence, many Americans have developed newfound interest in protection solutions in hopes of better positioning themselves for the next market downturn.

To address this urgent need, today Nationwide introduced Nationwide Indexed Principal Protection^sm, an in-plan group fixed indexed annuity, the first of a planned suite of in-plan annuities that will be launched over the course of 2021. This new investment option can provide the potential for growth based on the return of a market index while also providing principal protection. Additionally, there are no investment minimums for participants wanting to allocate to this new option.

“Participants, especially those nearing retirement, are looking for ways to protect their investments given recent market volatility. At the same time, they realize they still need growth in order to outpace inflation,” said Eric Stevenson, President of Nationwide Retirement Plans. “Nationwide Indexed Principal Protection is one of the first fixed indexed annuities to be offered as an in-plan annuity that can help participants address both of these needs.”

Nationwide Indexed Principal Protection will provide retirement plan participants with:

• Upside Potential - Participants will have upside potential, up to a cap, based on the performance of the S&P 500 Daily Risk Control 5% USD Excess Return Index. Nationwide Indexed Principal Protection sets an annual cap rate for each index account every calendar quarter. Offering a new index account with a one-year term four times a year allows retirement plan participants to diversify market entry timing.
• Principal Protection - Participants will not lose their principal even if the market index goes down, due to the floor of 0%. When the corresponding market index return is negative over the one-year term, the account loses nothing since the principal is protected.
• Liquidity - Participants can exchange out of the Nationwide Indexed Principal Protection investment option at any time without incurring a contingent deferred sales charge (CDSC). In order to receive interest earnings from an index account, participants must not exchange out before the term ends.

In addition to Nationwide Indexed Principal Protection, 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.

“While the SECURE Act removed many barriers around in-plan annuities by making them more accessible and portable than before, we know it’s not a one-size-fits all situation,” said Eric Henderson, President of Nationwide Annuity. “By leveraging our expertise as a leading provider of annuities, our new suite will offer a broad range of in-plan annuities to meet the needs of plan sponsors and their participants, whether they’re looking to guarantee income or to protect principal, or both.”

Based on Nationwide’s research, plan sponsors, participants, consultants, advisors and financial professionals are becoming more receptive to incorporating in-plan annuities within defined contribution plans.

Nationwide’s Advisor Authority study found that two-thirds of both Millennial investors (65%) and Gen X investors (66%) indicate they are likely to incorporate in-plan guarantees within their defined contribution plans. The study also showed that nearly two-thirds of advisors and financial professionals (64%) say they are likely to adopt in-plan guarantees to provide guaranteed income within clients’ defined contribution plans. Six in ten (60%) employers also say they would consider offering employees lifetime income solutions according to a 2019 survey by Willis Tower Watson.

Recent analysis suggests that allocations to variable annuities with GLWBs can create more expected income with less risk than through systematic withdrawals alone, by reducing the risk of portfolio depletion. According to Nationwide’s latest Advisor Authority study, 84% of advisors and financial professionals say that the use of an annuity with an income guarantee is important for supporting a sustainable withdrawal rate.

“The 4% rule has been a cornerstone of retirement income planning for decades, but with interest rates near 30-year lows, clients are being presented with difficult choices such as reducing their withdrawals, taking on riskier assets or increasing the chance of depleting their portfolio and outliving their savings. RIAs and fee-based advisors need new solutions,” said Eric Henderson president, Nationwide Annuity, at Nationwide Financial. “Nationwide Pro 4^SM Income Rider can provide a guaranteed 4% withdrawal rate for life, with up to 100% equity exposure for greater income growth potential clients seek—and the protection from market downturns they need.”

Nationwide Pro 4^SM Income Rider is designed to provide a steady stream of income that’s guaranteed for the client’s entire life, even if the contract value falls to $0.² There is also a Joint Option for continuation of income for a spouse. This fee-based GLWB guarantees a lifetime withdrawal percentage of 4.0% for Single Life and 3.75% for the Joint Option.³ At a low cost of 0.45% for Single Life and 0.60% for the Joint Option³, Nationwide Pro 4^SM Income Rider is less than half of the industry average cost for a GLWB according to Morningstar data.⁴

Nationwide Pro 4^SM offers more than 150 underlying investment options, which allows RIAs and fee-based financial professionals to build custom portfolios for their clients’ annuity holdings with a maximum equity exposure of 100%.⁵ With its broad fund selection, Nationwide Pro 4^SM allows RIAs and fee-based financial professionals to manage clients’ assets more holistically across taxable and tax-deferred accounts while helping them mitigate longevity risk by incorporating an annuity with an income guarantee.

To help clients benefit from the market’s growth potential and protect their income from possible market losses, Nationwide Pro 4 ^SM Income Rider offers a potential annual step-up feature on the income benefit base each year on the contract anniversary.⁶ If the contract value goes up, the benefit base resets to the higher value. But the benefit base can never go down, even if the contract value falls below the original investment level.

To give clients added flexibility, Nationwide Pro 4^SM Income Rider offers a one-time non-lifetime withdrawal without stopping the step-up feature or locking in the lifetime withdrawal percentage.⁷ To enhance flexibility for RIAs and fee-based financial professionals, advisory fees of up to 1.50% of the average contract value can be pulled from the contract value, depending on Broker Dealer rules, without impacting the client’s income benefit or death benefit. In addition, according to Nationwide’s IRS private letter ruling secured last year, advisory fees up to 1.50% can be pulled from a non-qualified annuity, depending on Broker Dealer rules, without creating a taxable event.

A growing number of investors are recognizing the importance of annuities. According to Advisor Authority, 54% of investors are likely to choose an annuity as part of their holistic plan to protect against outliving their savings—including nearly three-fourths of Millennial investors (72%) and more than two-thirds of Gen X investors (69%). Likewise, younger investors are likely to choose an annuity to protect against outliving their savings, including 72% of Millennial investors and 61% of Gen X investors.

RIAs and fee-based financial professionals can visit www.nationwideadvisory.com, or call 1-866-667-0564 for more information about Nationwide Pro 4^SM Income Rider.

All guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company.

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.

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“Nationwide has a deep commitment to protecting people, businesses and futures with extraordinary care, so we take great pride in ranking No. 1 for overall satisfaction in the J.D. Power 2020 Study,” said Eric Henderson, president of Nationwide’s Annuity business. “Nationwide exists to serve our customers, and their satisfaction remains the greatest measure of our success.”

Nationwide annuities tied for first place out of 15 competitors and ranked first or second across three out of five factors. Nationwide demonstrated strength and scored significantly above the industry average in every category, including product offerings, interaction, statements, price and communication. The company earned an overall satisfaction score of 802 on a 1,000-point scale.

“Right now, Americans face intense volatility impacting their retirement security, and we are focused on the right priorities to help them feel more confident about achieving their long-term retirement income goals,” Henderson continued. “Confronting the outsized challenges of the pandemic, we made strategic product changes that helped us balance growth with customer value, enhance our self-service capabilities and optimize for a virtual environment.”

Nationwide’s No. 3 ranking for Individual Life was an improvement from the No. 6 position in 2019, driven by improved scores in practically every category.

“Our top quartile position reflects some of the investments we’ve made in transforming our Life business, always keeping the customer at the center of our thinking and ensuring we continue to deliver extraordinary care,” said Holly Snyder, President of Nationwide’s Life business. “Additionally, process and technology improvements enabled us to respond quickly with customer focused solutions, especially during these challenging times.”

This year’s J.D. Power U.S. Life Insurance study was fielded between June and August 2020. The official J.D. Power 2020 Individual Annuity Study press release can be viewed here.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

“Defined Protection Annuity is perfectly aligned with Nationwide’s mission to protect people, businesses and futures with extraordinary care,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “Buffered RILAs have seen strong growth, but record drops in the stock market earlier this year and concerns that the next drop could remain lower for longer, show the importance of a floor structure to provide a clearly defined level of protection. We were very intentional in our decision to enter this category with an innovative solution that can help conservative to moderate investors balance the right level of protection they need with the greater growth potential they want.”

Nationwide DPA provides three defined protection levels which limit negative performance. This allows clients to select how much of their investment—90%, 95% or 100%—will be protected from market losses and helps determine their performance opportunities. DPA also features a variety of index strategies that can offer upside potential and be tailored to fit a broad range of investment objectives. These include traditional equity indices like the S&P 500^® Price Index and MSCI EAFE, as well as the NYSE^® Zebra Edge^® Index and J.P. Morgan Mozaic II℠ Index, two indices designed to provide consistent performance through market cycles. These indices optimally complement the DPA product structure and provide a greater growth opportunity of up to twice the return of the index each year.²

“Clients preparing for or living in retirement can’t afford to lose more than 10% of their retirement savings without needing to adjust their plans³—and according to a recent Nationwide Retirement Institute survey, in today’s complex market more than half of investors recognize the importance of annuities to protect their assets against market risk,” said Craig Hawley, head of Nationwide’s annuity distribution. “With Nationwide Defined Protection Annuity, financial professionals can help clients set limits on the amount of potential loss, control how much risk they’re comfortable with, control how much growth potential they want and have the flexibility to adjust as their risk tolerance changes over time. We’re also offering new tools to help advisors educate clients about the risks in retirement and where DPA fits as part of the modern-day retirement portfolio.”

“Investors have traditionally shifted more assets to bonds and other fixed income investments to de-risk their portfolios as they near or enter retirement,” said Annexus co-founder Don Dady. “In today’s low interest rate environment, these safe options no longer provide enough yield to be a viable investment — in fact, they are starting to become increasingly risky due to the high probability of rising interest rates over the long term. DPA is designed to excel in a low interest rate environment and offer clients a viable solution for greater growth potential.”

“The partnership between Nationwide and Annexus continues both of our companies’ traditions of designing protection-focused products with the goal of delivering better client outcomes,” said Annexus co-founder Ron Shurts. “DPA is the result of thousands of hours of close collaboration over the past two years to deliver a solution that meets investors’ unique needs for protection, growth and flexibility.”

Nationwide Defined Protection Annuity will be available to consumers through Financial Professionals across the U.S., with more than 300 wirehouses, banks and independent broker-dealers expected to offer the product. DPA is pre-approved through certain broker-dealers where it will be available as of August 31, 2020.

Financial professionals interested in Nationwide Defined Protection Annuity should contact their Nationwide wholesaler or call the National Sales Desk at 800-321-6064. Individual investors interested in learning more about the benefits of defined protection should contact their financial professional or visit www.definedprotection.com.

According to the 2019 Tax-Efficient Retirement Income survey conducted online by The Harris Poll on behalf of The Nationwide Retirement Institute® among U.S. adults age 50+ who are currently retired or planning to retire in the next 10 years, a third of current retirees (35%) did not consider how taxes would affect their retirement income when planning for retirement. As a result, many express regrets, with a third of retirees (32%) reporting they wish they had better prepared for paying taxes in retirement.

“With many Americans already reviewing their finances while submitting their taxes, as well as assessing how COVID-19 has impacted their financial goals, it’s an ideal time to also examine their plans for taxes in retirement,” said Eric Henderson, president of Nationwide’s Annuity business. “The reality is many older adults are not considering or knowledgeable about taxes in retirement.”

The survey found two in five future retirees (38%) are terrified of what taxes will do to their retirement income, yet 35% rarely consider the taxes they are paying or will pay in retirement. Further, less than half of current retirees (43%) say they know how to leverage taxable, tax-deferred and tax-free accounts.

“While being in retirement can reduce or eliminate several expenses in older adults’ budgets, their tax bill may not be one of them,” Henderson added. “The data clearly illustrates that retirees aren’t always strategically preparing for – or even thinking about – taxes in retirement, and as a result, may be paying thousands of dollars more than needed.”

Building tax flexibility into a retirement income plan is crucial. Doing so allows older adults to use a variety of investment and retirement accounts (taxable, tax-deferred, and tax free) to potentially avoid higher tax brackets and effectively manage their income.

Older adults were concerned about retirement security before COVID-19

The 2019 survey reveals that older adults (50+) had concerns about various uncontrollable and controllable aspects of retirement that could threaten their financial security even before COVID-19 impacted financial plans. Top concerns in retirement among current and future retirees are health care costs (61% very/somewhat concerned), the impact of market volatility on retirement income (57%), planning for and potentially needing long-term care (56%), the impact of inflation on retirement income (55%), and not having enough money to cover unplanned medical expenses (48%).

“While we are all adjusting to our new environment, it’s difficult to gauge what could happen in the future, such as where the stock market is headed or what the impact of inflation will be in ten years,” said Henderson. “Therefore, consumers should focus on what they can control: building a strong financial plan that accounts for the unexpected, as well as optimizes tax strategies. By taking the right steps to plan for taxes in retirement, retirees can help offset potentially negative impacts to their retirement income.”

Due to COVID-19, many Americans are likely to withdraw money from their retirement plan early 

Roughly two in five Americans (38%) say the COVID-19 pandemic has impacted their retirement plans by having to retire later than planned, now not being able to retire at all or being forced into retirement. Plus, 41% are currently reevaluating their retirement plans to assess the financial impact of COVID-19. These are among the findings revealed by a new COVID-19 Tax Survey conducted online in May 2020 by The Harris Poll on behalf of The Nationwide Retirement Institute® among U.S. adults 18+.

When it comes to retirement income, 63% say it is more important now to develop a strategy to address taxes in retirement and 59% worry more now about what taxes will do to their income in retirement than they did before.

The CARES Act recently increased the 401(k)-withdrawal limit and eliminated the 10% early withdrawal and 20% federal tax withholding on early 401(k) withdrawals for those impacted by the crisis. Given the changes, two in five Americans with a 401(k) (39%) – including more than half of millennials (53%) – now say they are likely to withdraw money from their retirement plan early because of the pandemic.

Americans look to financial professionals for guidance as a result of the pandemic

It is important for consumers to know their options before dipping into their retirement savings, and data shows many Americans are now seeking help. The Nationwide Retirement Institute’s COVID-19 Financial Survey, conducted online in April 2020 by The Harris Poll among U.S. adults 18+, finds that roughly one quarter (24%) of Americans are seeking help by engaging a financial professional for the first time ever as a result of the pandemic.

Heightened uncertainty and complexity are driving a need for greater financial protection. Roughly half of Americans agree that the COVID-19 pandemic has made them recognize the need for annuities to protect their investments against market risk (47%) and to protect their retirement income (48%). More than half of all U.S. adults (57%) and investors (60%) also say the pandemic has made them recognize the need for life insurance.

“Americans are becoming more aware of how today’s life insurance options and products not only protect their loved ones, but also provide benefits like long-term care coverage and tax-free income while they’re alive,” said Troy Anderson, vice president of Individual Protection for Nationwide.

The survey also shows that financial professionals (37%) top the list of trusted sources for general financial and money management advice during the pandemic.

Financial professionals should work with clients to optimize taxes in retirement 

There is an opportunity for financial professionals to discuss tax planning in retirement and educate clients on the best strategies to reduce unexpected taxes on combined income sources – and retirees expect their financial professional to help. According to the 2019 Tax-Efficient Retirement Income survey, current and future retirees prefer using a financial professional to learn about retirement planning (57%) versus reading printed materials (46%) or doing independent research online (45%).

The need for this guidance from financial professionals is significant. Twenty percent of current and future retirees do not get tax planning advice from any sources, underscoring an important opportunity for financial professionals to work with clients. Further, 42% of future retirees would switch financial professionals for someone who could help them plan for their taxes in retirement. A financial professional can ask smart questions, help consumers effectively and holistically prepare for the future, and determine how to correctly use income sources to maximize retirement income and minimize taxes.

To learn more about Nationwide Retirement Institute’s Tax-Efficient Retirement Income survey, visit www.nationwidefinancial.com/RetirementIncomeSurvey.

Methodologies

The Tax-Efficient Retirement Income survey was conducted online by The Harris Poll on behalf of The Nationwide Retirement Institute between April 18 and May 7, 2019 among 1,301 U.S. adults age 50 or older who currently collect or plan to collect Social Security benefits, have at least $150K in investable assets, and are either currently retired or plan to retire within the next 10 years. Throughout the report, consumers who anticipate retiring within the next 10 years are referred to as "future retirees" to be more concise.

The COVID-19 Tax survey was conducted online within the United States between May 15-19, 2020 among 2,026 adults (aged 18 and over) by The Harris Poll on behalf of The Nationwide Retirement Institute via its Harris On Demand omnibus product.

The COVID-19 Financial survey was conducted online within the United States between April 8-10, 2020 among 2,042 adults (aged 18 and over) by The Harris Poll on behalf of The Nationwide Retirement Institute via its Harris On Demand omnibus product.

Respondents for these surveys were selected from among those who have agreed to participate in our surveys. Because the sample is based on those who agreed to participate in the online panel, no estimates of theoretical sampling error can be calculated. Data are weighted where necessary by age by gender, race/ethnicity, region, education, income, marital status, and propensity to be online to bring them in line with their actual proportions in the population.

About The Harris Poll

The Harris Poll is one of the longest running surveys in the U.S. tracking public opinion, motivations and social sentiment since 1963 that is now part of Harris Insights & Analytics, a global consulting and market research firm that delivers social intelligence for transformational times. We work with clients in three primary areas; building twenty-first-century corporate reputation, crafting brand strategy and performance tracking, and earning organic media through public relations research. Our mission is to provide insights and advisory to help leaders make the best decisions possible. To learn more, please visit www.theharrispoll.com.

Nationwide, one of the strongest, diversified, Fortune 100 insurance and financial services companies, has launched the Nationwide Lifetime Income Rider+℠ (L.inc+) Suite, available for an additional cost with certain Nationwide Destination^SM 2.0 variable annuities. The Nationwide L.inc+ Suite is designed as a flexible solution for financial professionals to help clients meet their unique retirement income needs—whether they seek a consistent income stream that will never decrease, a fluctuating income stream with more market exposure for greater growth potential, or a front-loaded stream to fill an income gap. All guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company.

“Americans are in real danger of outliving their retirement savings, as today’s persistent low rates and ongoing volatility compound the existing challenges of greater longevity and an eroding retirement safety net,” said Eric Henderson, president, Nationwide Annuity, at Nationwide Financial. “Annuities with income guarantees have become more important to investors, especially those who have lived through the crash of 2008 and are now living through this current crisis. 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.”

The Nationwide Linc+ Suite, including three different Guaranteed Lifetime Withdrawal Benefits (GLWBs), allows financial professionals to tailor a solution to meet their clients’ unique needs for retirement income for life, with a variety of payout options, equity exposures and flexible features:

Nationwide Lifetime Income Rider+℠ Core (L.inc+ Core): Consistent retirement income for life. For clients seeking a level of certainty for predictable retirement income by converting part of their savings into a steady retirement paycheck. L.inc+ Core offers guaranteed income with maximum equity exposure of 60%.

Nationwide Lifetime Income Rider+ Accelerated (L.inc+ Accelerated): Retirement income for life with greater growth potential. For clients who are comfortable with fluctuating retirement income in exchange for greater growth potential. L.inc+ Accelerated offers guaranteed income for life with the ability to allocate up to 100% in equities.

Nationwide Lifetime Income Rider+ Max (L.inc+ Max): Front-loaded retirement income for life. For clients who expect to need more 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. L.inc+ Max offers guaranteed income for life with 100% equity exposure for greater growth potential.

To help meet clients’ changing needs, Nationwide is the first to offer an Income Carryforward feature¹, to roll forward one year of unused income during the income phase². Nationwide’s L.inc+ Suite also provides clients the flexibility to access assets if needed through a one-time Non-Lifetime Withdrawal that won’t impact the roll-up rate to the income benefit base³.

The L.inc+ Suite offers 5% roll up to the income benefit base during the accumulation phase⁴, and it provides monthly income for life—even if the contract value falls to zero⁵. The suite offers protection against market risk through an annual step-up feature to lock in the income benefit base at the highest anniversary contract value—regardless of what happens in the market. L.inc+ also offers inflation protection through a simple interest roll-up rate.

In addition, the L.inc+ Suite offers enhanced dollar cost averaging and asset rebalancing, offers the ability to take IRS required minimum distributions (RMDs) without impacting guaranteed lifetime income, and income is calculated on a calendar year basis, to simplify clients’ planning by knowing exactly when their annual income will re-set.

Visit https://www.nationwide.com/personal/investing/annuities/riders/types/lifetime-income-plus or call 1-800-321-6064 for more information about the L.inc+ Suite.