LIS includes an optional income feature that will systematically transition a participant’s retirement savings to a guaranteed lifetime income program starting at age 50. This allows the participant to build up a lifetime income benefit that is protected, even in down markets.

Nationwide began its partnership with AB in 2012 when AB launched its Lifetime Income Strategy to the marketplace, the first-of-its-kind and now largest multi-insurer default solution, with Nationwide as one of the insurers. LIS now has $6.2 billion in assets under management (as of May 31, 2021) and offers lifetime income to nearly 300,000 plan participants. For almost a decade, AB has continued to enhance LIS, incorporating more customization and flexibility for individual participants to tailor it to their unique circumstances.

“The expansion of Lifetime Income Strategy is an extension of an already highly successful relationship Nationwide has with AB and will serve as an important addition to our suite of in-plan guarantees designed to address America’s growing retirement income needs across all plan types and sizes,” said Eric Stevenson, president of Nationwide Retirement Solutions. “At Nationwide, we record keep and service a large number of retirement plans for major employers.

This solution will be a strong fit for those types of plans that are looking to provide in-plan income options to their participants.”

Stevenson added the passing of the Setting Every Community up for Retirement Enhancement Act (SECURE) Act of 2019 created opportunities to provide more flexibility and access to lifetime income options within defined contribution retirement plans.

“In addition to the legislative change, research shows consumers’ need for lifetime income is stronger than ever,” he said.

“AB is committed to delivering effective lifetime income solutions to meet the evolving needs of both plan sponsors and participants,” said Jennifer DeLong, Head of Defined Contribution at AB. “We’re delighted to expand our long-standing relationship with Nationwide to offer the Lifetime Income Strategy to their recordkeeping clients and are looking forward to partnering with them to help plan participants be confident about retiring, on their own terms.”

As part of its ongoing commitment to economic empowerment and social justice, Nationwide supported this important event with a $100,000 contribution and active participation from four top executives. Eric Stevenson, President of Nationwide Retirement Solutions, is an Oklahoma native and served as co-host for the day. Retiring Nationwide Chief Administrative Officer, Gale King, Nationwide Retirement Institute leader, Kristi Martin Rodriguez, and Chris Graham, Nationwide Mutual Funds chief investment officer, also participated in panel discussions.

"Economic Empowerment Day was a moving and inspirational experience for all involved,” Stevenson said. “What started as a local effort became a unifying event that’s driving national awareness and conversations. This dialogue is exactly what our country needs right now as we continue to look for opportunities to empower diverse individuals and businesses and address the racial wealth gap.”

Economic Empowerment Day was built around three educational tracks:

Black Wallstreet – For Institutional Investors
Examining the Black presence in the investing world and opportunities for diversity and inclusion in institutional investing, including the larger roles that policy and government can play in supporting the advancement of diverse asset managers.

Black Commerce Street – For Business Owners and Entrepreneurs
Exploring the role of Black business in shaping communities and building wealth with an emphasis on access to capital and other resources that are essential for success.

Black Wealth Street – For Families
Focused on useful and practical recommendations for building individual and cross-generational wealth, financial security and closing the wealth gap for all.

A replay of all of the event’s sessions is available until Aug. 30 at Tulsa2021eed (vfairs.com).

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In a recent Bloomberg Wealth Summit panel discussion, Eric Stevenson, president of Nationwide Retirement Solutions, weighed in on a number of topics impacting financial security in America, including:

• SECURE Act 2.0
• Emergency savings
• In-plan guarantees
• Importance of financial professionals

Watch a replay of the discussion here.

Stevenson cited research¹ from the Nationwide Retirement Institute^® that found COVID-19 has negatively impacted Americans’ retirement planning, with one in five (19%) indicating they were forced to delay or cancel their retirement and more than one-fourth (27%) saying they saved less or stopped saving for retirement because they lost their job or for other reasons.

“Many continue to struggle with even thinking about retirement given the financial impact COVID-19 has had,” said Stevenson.

Stevenson advocated for the passage of SECURE Act 2.0 as a great opportunity to enhance retirement security in the United States and also encouraged lawmakers to enable emergency savings opportunities for retirement plans participants.

He said Nationwide Retirement Institute^® research² shows that 94% of advisors and financial professionals agree adding an emergency savings provision to the proposed SECURE Act 2.0 legislation that would permit employees to withdraw or use limited retirement plan contributions for critical short-term financial needs without an early distribution tax penalty would help improve Americans’ financial security.

He also applauded the passage of the SECURE Act in 2019, which helped pave the way for in-plan guarantees within defined contribution plans by creating a safe harbor provision and addressing portability, liquidity and fee issues that have hindered the adoption of these solutions in the past.

“Until recently the industry has been focused on telling participants to save, save, save, but the industry hasn’t always addressed what participants need to do with their savings once they retire,” said Stevenson. “In-plan guarantee options within a retirement plan can help people turn those savings into a steady stream of income.”

Stevenson also highlighted the importance of investors getting help from financial professionals.

“Our research on investors when it comes to taking Social Security found that the No. 1 source for advice on this topic is from a neighbor,” said Stevenson. “The importance of working with a financial professional can’t be overstated.”

¹ Nationwide Retirement Institute^® 2021 Tax-Efficient Income Survey

² Nationwide Retirement Institute^® Survey of Advisor and Financial Professionals, 2021

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As part of its ongoing commitment to economic empowerment and social justice, Nationwide is supporting this important event with a $100,000 contribution and active participation from three top executives.

Eric Stevenson, President of Nationwide Retirement Solutions, is an Oklahoma native and will serve as co-host for the day. Retiring Nationwide Chief Administrative Officer, Gale King and Nationwide Retirement Institute leader, Kristi Martin Rodriguez will participate in panel discussions.

"What’s happening in Tulsa is truly inspiring. Rather than continuing to bury the reality of what happened, the community is embracing its past and using it as a model for how we can accelerate our progress," Stevenson said. "With leadership from Governor Stitt, Senator Lankford, State Senator Matthews, Mayor Bynum, Commission project director, Phil Armstrong and many others, what started as a local effort has become a unifying event and it's driving national awareness and conversations. We are deeply grateful to our sponsors from all over the country who are elevating what happened 100 years ago in the Greenwood District to put words into action and enhance the path forward."

Stevenson will co-host Economic Empowerment Day along with actor and author, Hill Harper and Ron Parker, President & CEO of the National Association of Securities Professionals. The event includes an interactive conference with in-person and virtual opportunities for education and networking as well as high-profile keynote speakers. It is part of a weeks-long programing lineup that includes the June 2 dedication of Greenwood Rising: The Black Wall Street History Center.

“We are thankful to Nationwide for partnering with the Commission to engage Tulsans and Americans about the Racial Wealth Gap on Economic Empowerment Day,” said Phil Armstrong, project director for the Centennial Commission. “Black Wall Street was once thriving and we must create systematic changes to recapture Black wealth in all facets – from personal wealth building, to entrepreneurship and capital. We hope this day is a launching point for change in many lives.”

Anyone can register to attend virtually for $19.21 by visiting the event website.  Proceeds benefit the 1921 Tulsa Race Massacre Centennial Fund, administered as a donor-designated fund through the Tulsa Community Foundation, a 501(c)(3) nonprofit organization. Specific priorities to be funded are:

• Access to capital for Black entrepreneurs (TRMCC Economic Development Committee)
• Entrepreneurship development programs (Sky’s the Limit/Mortar)
• Economic development and internship programs for Black youth (Tulsa Regional Chamber/GKFF)

Additional, ongoing, Nationwide efforts to address racial disparity and social justice include:

• Launching the Financial Alliance for Racal Equity in 2020, a coalition of financial services industry partners and historically Black colleges and universities dedicated to attracting, developing and retaining a more diverse workforce in the financial services industry.
• Advocating for equality for decades through partnerships with the National Fair Housing Alliance, National Urban League and UnidosUS and long-standing relationships with the Central Intercollegiate Athletic Association, the Executive Leadership Council, the Black Enterprise Entrepreneurs Summit and Catalyst.
• Ongoing internal efforts to identify tangible ways for the company to combat racism and promote social justice through the lens of a Social Justice Task Force made up of diverse leaders across the company.
• Continued commitment to having a diverse Board of Directors and leadership team alongside robust DEI and supplier diversity programs.

Many American students never learned about the Tulsa Race Massacre in history class, or about the tragic leveling of a once thriving  “Black Wall Street” in 1921. On June 1, 2021 Black leaders, investors, business owners and entrepreneurs will gather in Tulsa, OK to observe the 100^th anniversary of one of the most devastating race crimes in the history of our nation. The 1921 Tulsa Race Massacre Centennial Commission’s Economic Empowerment Day event will mark this milestone with an interactive conference designed to create a collective focal point for the national conversation on the racial wealth gap and inequality in access to capital.

As part of its ongoing commitment to economic empowerment and social justice, Nationwide is supporting this important event with a $100,000 grant from the Nationwide Foundation and the active participation of three top executives.

Eric Stevenson, President of Nationwide Retirement Solutions, is an Oklahoma native and will serve as co-host for the day. Retiring Nationwide Chief Administrative Officer, Gale King and Nationwide Retirement Institute leader, Kristi Martin Rodriguez will participate in panel discussions.

"What’s happening in Tulsa is truly inspiring. Rather than continuing to bury the reality of what happened, the community is embracing its past and using it as a model for how we can accelerate our progress," Stevenson said. "With leadership from Governor Stitt, Senator Lankford, State Senator Matthews, Mayor Bynum, Commission project director, Phil Armstrong and many others, what started as a local effort has become a unifying event and it's driving national awareness and conversations. We are deeply grateful to our sponsors from all over the country who are elevating what happened 100 years ago in the Greenwood District to put words into action and enhance the path forward."

Stevenson will co-host Economic Empowerment Day along with actor and author, Hill Harper and Ron Parker, President & CEO of the National Association of Securities Professionals. The event includes an interactive conference with in-person and virtual opportunities for education and networking as well as high-profile keynote speakers. It is part of a weeks-long programing lineup that includes the June 2 dedication of Greenwood Rising: The Black Wall Street History Center.

“We are thankful to Nationwide for partnering with the Commission to engage Tulsans and Americans about the Racial Wealth Gap on Economic Empowerment Day,” said Phil Armstrong, project director for the Centennial Commission. “Black Wall Street was once thriving and we must create systematic changes to recapture Black wealth in all facets – from personal wealth building, to entrepreneurship and capital. We hope this day is a launching point for change in many lives.”

Anyone can register to attend virtually for $19.21 by visiting the event website. Proceeds benefit the 1921 Tulsa Race Massacre Centennial Fund, administered as a donor-designated fund through the Tulsa Community Foundation, a 501(c)(3) nonprofit organization. Specific priorities to be funded are:

• Access to capital for Black entrepreneurs (TRMCC Economic Development Committee)
• Entrepreneurship development programs (Sky’s the Limit/Mortar)
• Economic development and internship programs for Black youth (Tulsa Regional Chamber/GKFF)

Additional, ongoing, Nationwide efforts to address racial disparity and social justice include:

• Launching the Financial Alliance for Racal Equity in 2020, a coalition of financial services industry partners and historically Black colleges and universities dedicated to attracting, developing and retaining a more diverse workforce in the financial services industry.
• Advocating for equality for decades through partnerships with the National Fair Housing Alliance, National Urban League and UnidosUS and long-standing relationships with the Central Intercollegiate Athletic Association, the Executive Leadership Council, the Black Enterprise Entrepreneurs Summit and Catalyst.
• Ongoing internal efforts to identify tangible ways for the company to combat racism and promote social justice through the lens of a Social Justice Task Force made up of diverse leaders across the company.
• Continued commitment to having a diverse Board of Directors and leadership team alongside robust DEI and supplier diversity programs.

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“Our business is built on a model of providing extraordinary care to the plan partners and participants we serve,” said Eric Stevenson, president of Nationwide Retirement Solutions. “To earn this award from DALBAR in the first two years of its existence demonstrates our commitment to meeting customers where they are and delivering an exceptional service experience across all channels, whether by phone, web or mobile, particularly during the pandemic and related market volatility over the last year.”

DALBAR found that Nationwide provides an award-winning experience across the following service channels:

• Telephone – Consistently considered the most important channel by customers
• Web – The channel with the most repeat users
• Mobile – Particularly important with younger customers

DALBAR Director Brendan Yeager explains, “DALBAR holds companies to stringent quality standards. To exceed our award levels in a single channel is a huge accomplishment, but to do so across the channels that make up the overwhelming majority of customer interactions is something else entirely; it is truly remarkable. This accomplishment not only speaks to Nationwide’s deep commitment to the customer experience, it also reflects their ability to execute flawlessly. They are really delivering on the promise of a superior standard of care, regardless of how their customers choose to interact.”

2021 is the second year in which DALBAR recognized leading providers with the Customer Experience Excellence Award. DALBAR’S Customer Experience Audit (CXA) programs have been evaluating the various channels through which financial services companies communicate and interact with their customers for over 30 years. Their approach involves reviewing actual interactions, communications and interfaces against industry-leading criteria and accumulated best practices. These are compared to DALBAR’s market-leading criteria, top-performing firms and accumulated best practices.

DALBAR, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating the customer experience, business practices, investor behavior, and product quality. Launched in 1976, DALBAR has earned a reputation for consistent and unbiased evaluations. DALBAR awards are recognized as marks of excellence in the financial community.

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“It’s an exciting time— a true paradigm shift—for the workplace retirement plan industry and the plan participants we serve,” said Eric Stevenson, President of Nationwide Retirement Plans. “Lifetime Income Builder is the latest in our suite of in-plan guarantees designed to address savers’ growing income needs across all plan types and sizes. This innovative new investment option allows us to better serve existing plan sponsors and consultants while also reaching new clients by providing their participants with the protection they seek, and the guaranteed income they need, to help them achieve a more secure retirement.”

Nationwide and Annexus Retirement Solutions are joining forces to create a competitive in-plan solution that helps address the participant’s risk of outliving income, one of the biggest financial challenges faced by many Americans today. This solution embeds a fixed indexed annuity with a guaranteed lifetime withdrawal benefit – the Lifetime Income Builder – directly into a collective investment trust consisting of a series of target date funds. The investment options help increase income potential while maintaining a familiar investment experience for the participant due to the target date series structure.

"Until now, the retirement planning industry hasn’t made it easy for participants to know how to secure their financial future,” said Don Dady, Co-Founder of Annexus, the parent company of Annexus Retirement Solutions. “The risks in retirement require an integrated solution for most participants to optimize the potential income from their retirement plan. Lifetime Income Builder is designed to achieve this objective without requiring participants to give up control or flexibility. In partnering with Nationwide, this solution is easier for a participant to understand given the target date fund framework, with the added benefit of helping to maximize results for the participant to and through retirement.”PNN-2025AO

“Our solutions centers saw unprecedented call volumes last year from plan participants worried about their retirement savings given the market volatility,” said Eric Stevenson, president of Nationwide Retirement Plans. "In this environment, participants are taking advantage of digital and mobile functionality now more than ever. At Nationwide, we excel at complementing our technical solutions with our people and this DALBAR award validates our high level of performance."

DALBAR, a financial services market research firm, recently announced that Nationwide Retirement Plans has earned the 2020 Plan Participant Service Award for outstanding telephone support to retirement plan participants. This is the seventh consecutive year in which Nationwide was recognized by DALBAR with this distinction.

“Last year presented financial uncertainties for many due to the pandemic and related volatility,” said Stevenson. “To receive this recognition from DALBAR for the seventh consecutive year is a testament to Nationwide’s continual commitment year after year to helping our plan participants stay focused on preparing for retirement. We demonstrate our outstanding support regardless of market, and—in 2020—, additional circumstances related to COVID-19.”

In order to earn this prestigious DALBAR award, companies must undergo a thorough and independent year-long audit looking at the quality of contact center interactions. Award eligibility is determined by a review of actual customer interactions against detailed criteria based on superior service standards and industry best practices. DALBAR’s criteria cover all aspects of the customer experience, including both the interpersonal relationship and the transactional elements. Despite the difficult environment for contact centers forced to adapt to the pandemic, Nationwide was held to the same high standards in 2020 as in years past.

“The DALBAR Service Award symbolizes the achievement of the highest tier of call center service to customers within the financial services industry,” said Brendan Yaeger, DALBAR Director. “It is awarded only to those firms that exceed industry norms in key service areas. The winners of this award are the service leaders within the financial services industry.”

More information about the award can be found in this DALBAR press release.

Additional information about Nationwide’s award-winning retirement plans can be found here.

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These are among the latest findings revealed in Nationwide’s sixth annual Advisor Authority study, powered by the Nationwide Retirement Institute, reflecting the responses of more than 1,800 advisors, financial professionals and individual investors with investable assets of $100,000 or more.

“Recent market turbulence and changing regulations have put a new lens on retirement needs. The pandemic is driving greater volatility, confidence in Social Security is eroding, access to defined benefits are on the decline and systemic shifts continue placing greater responsibility—and greater pressure—on individuals to fund their own retirement,” said Eric Stevenson, President of Nationwide Retirement Plans. “As defined contribution plans have become a predominant vehicle for retirement savings in the workplace, the SECURE Act will now help more plans to adopt in-plan guarantees, a crucial new solution with the potential to provide what Americans are looking for in the post-COVID world: A guarantee.”

The Setting Every Community Up for Retirement Enhancement (SECURE) Act removes existing barriers for plans adopting in-plan guarantees, to protect retirement savings and provide guaranteed income for life within defined contribution plans, including 401(k)s and 403(b)s, as well as Governmental 457(b) plans. Passed with bi-partisan support in late 2019, the SECURE Act is considered the most comprehensive retirement legislation since the Pension Protection Act of 2006, providing more opportunities for participants to access retirement planning solutions that can help them not only reach retirement, but also live in it.

Financial Professionals Predict Strong Adoption for In-Plan Guarantees

Following the passage of the SECURE Act, 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. More than one-third (39%) of advisors and financial professionals currently use in-plan guarantees to protect clients against outliving savings.

When asked for which net worth segment of clients they are most likely to recommend in-plan guarantees, advisors and financial professionals say Emerging High Net Worth clients ($500,000 to less than $1 million in investable assets). Likewise, Emerging High Net Worth investors are the net worth segment most likely to incorporate in-plan guarantees within their defined contribution plans. It is also important to note that Millennial and Gen X investors are the generations most likely to adopt in-plan guarantees, as detailed below.

In-plan guarantees are also proving popular with employers. Following the passage of the SECURE Act, 60% of employers also say they would consider offering employees lifetime income solutions according to a 2019 survey by Willis Tower Watson.

Millennials and Gen X also Favor In-Plan Guarantees

The need for guaranteed income among investors who are ages 55 and younger is clear, as they face greater responsibility to save for their retirement than preceding generations, and they are likely to spend more years in retirement. The SECURE Act will not only give Millennials and Gen X investors the opportunity to potentially save more, by taking advantage of tax-deferred and tax-free accumulation over time, it also gives them the opportunity to generate a protected stream of lifetime income in retirement by leveraging in-plan guarantees.

While potential adoption is lower among the overall population of investors, with only 43% likely to incorporate in-plan guarantees within their defined contribution plans and nearly one quarter (22%) saying they do not know, investors who are ages 55 and younger are far more likely to adopt in-plan guarantees as a result of the SECURE Act. In fact, two-thirds of both Millennial investors (65%) and Gen X investors (66%) are likely to incorporate in-plan guarantees within their defined contribution plans, compared to only 28% of Boomer investors. While 24% of investors overall currently use in-plan guarantees within their defined contribution plans, more Millennial investors (30%) and Gen X investors (37%) use in-plan guarantees than Boomer investors (17%).

SECURE Act Drives Use of Annuities

By raising awareness about the importance of guaranteed income, the SECURE Act is also driving greater usage of annuities. As a result of the SECURE Act, 70% of advisors and financial professionals also say they will increase their usage of annuities. Likewise, investors ages 55 and younger are more likely than the overall population of investors to say they will increase their usage of annuities as a result of the SECURE Act.

While only 42% of the overall population of investors plan to increase their use of annuities due to the SECURE Act, adoption among younger investors is far greater. Nearly three-fourths of Millennial investors (70%) and nearly two-thirds of Gen X investors (63%) are likely to increase their use of annuities due to the SECURE Act, compared to only one-quarter of Boomer investors (25%).

“The fallout from COVID-19 continues to challenge investors and threaten the security of their retirement, driving greater demand for guarantees both inside and outside of their qualified plans,” said Craig Hawley, head of Nationwide’s Annuity Distribution. “In fact, months after the coronavirus was declared a pandemic, 85% of investors continue to say they can do all the right things to manage their finances, yet still be blindsided by outside events.”

More than three-fourths of advisors and financial professionals (79%) are likely to choose an annuity as part of a holistic financial plan to protect clients against outliving their savings, according to Advisor Authority. In addition, 84% of advisors and financial professionals say annuities with income guarantees are important for supporting a sustainable withdrawal rate that will generate income in retirement and protect against outliving savings.

Likewise, more than half of investors (54%) are likely to choose an annuity as part of their holistic plan to protect against outliving their savings, including 71% of Millennial investors and 69% of Gen X investors vs 44% of Boomer investors. Notably, more than half of investors (53%) say they would feel more secure if a portion of their portfolio was invested in an annuity to protect against outliving their savings, including 73% of Millennial investors and 65% of Gen X investors vs just 42% of Boomer investors.

Protecting Retirement is a Top Priority

More than 9 in 10 advisors and financial professionals (94%) have a strategy in place to protect their clients against outliving their savings, according to Advisor Authority. Social Security (59%), dividend yielding stocks (55%) and variable annuities with living benefit riders (55%) are their top three solutions. In addition, the vast majority of advisors and financial professionals (83%) have a strategy in place to generate guaranteed income in retirement for their clients.

In comparison, roughly 8 in 10 investors (81%) have a strategy in place to protect themselves against outliving their savings. Investors are somewhat more likely than financial professionals to say they rely on Social Security (68%), and among investor’s top three most common solutions, they also cite defined benefit plan/pension (44%) and dividend yielding stocks (39%). Likewise, 80% of investors also have a strategy to generate guaranteed income.

“To confront today’s complex dynamics, planning and professional advice are more important than ever,” said Craig Hawley. “More than 9 in 10 investors say that having a plan for their investments helps them feel in control, even if they can’t plan for everything, and their number-one reason for working with an advisor is to feel more confident in their financial future.”

For more insights on the importance of the SECURE Act and in-plan guarantees, advisors and financial professionals can also view the latest Advisor Authority infographic:

Nationwide’s sixth annual Advisor Authority study powered by the Nationwide Retirement Institute explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market. This is the first in a series of ongoing releases from the sixth annual study.

About Advisor Authority: Methodology

The sixth annual Advisory Authority Survey was conducted online within the United States by The Harris Poll on behalf of Nationwide from May 27 – June 25, 2020 among 1,768 financial advisors and 817 investors, ages 18+. Among the 1,768 financial advisors, there were 758 RIAs, 642 Registered Reps, 500 Wirehouse and 165 other advisors. Among the 817 investors, there were 131 Millennials (Ages 18 – 39), 161 Generation X (Ages 40 – 55), 433 Boomers (Ages 56 – 74) and 92 Matures (Ages 75+). Investors are weighted where necessary by age by gender, race/ethnicity, region, education, income, marital status, household size, investable assets and propensity to be online to bring them in line with their actual proportions in the population. Respondents for this survey were selected from among those who have agreed to participate in Harris Poll surveys. Because the sample is based on those who were invited to participate in the Harris Poll online research panel, no estimates of theoretical sampling error can be calculated.

“We recognize companies, families and individuals are facing financial challenges right now due to the pandemic, and we’re here to support plan sponsors and their participants to help ease their burden during these challenging times,” said Eric Stevenson, president of Nationwide Retirement Plans. “We want to help businesses balance the costs of offering retirement plans with the vital need for their employees to prepare for a secure retirement – a challenge that has been exacerbated by recent market volatility and uncertainty.”

The fee waiver is available on Nationwide’s flagship Flexible Advantage retirement plan solution beginning Aug. 1, 2020. If eligibility criteria are met, Nationwide will waive its portion of the plan’s asset fee for 90 days from the Trust Effective Date (the date of first deposit to Nationwide). Other fees still apply.

For more information call 1-800-626-3112.