Two new articles published by Annuity FYI give us some insight into new annuity riders. These riders not only guarantee lifetime income, they also protect your money against market risk. David Port and Kerry Pechter each wrote an exclusive article for Annuity FYI and the press release, “Annuity FYI: New Annuity Benefits Guarantee Lifetime Income and Reduce Market Risk,” highlights the articles and links to them.
David Port’s article, “An Annuity-Based Antidote to Volatility,” talks about Ohio National’s variable annuity rider. Their ONcore variable annuity has a new feature that will protect your money from drastic losses in market downturns so that your annuity will increase at a faster pace. Along with this, your money will stay in the equity market so it continues to grow. This hedging strategy is proven effective and will protect your money as well as leave room to grow, especially as you reach retirement age. You can also use this annuity to receive guaranteed lifetime income during your retirement.
In “Ohio National Pioneers a Low-Risk GLWB Strategy,” Kerry Pechter talks about how Ohio National is using two different techniques to deal with the risk of variable annuities so that your return is actually predictable. They are the first company using the TOPS/Milliman volatility controlled, futures-driven, ETF-based investment technology for their funds. It’s allowing Ohio National to offer 5.25% lifetime annual withdrawal benefits at age 65 versus the normal 5% that is offered.
Read the articles in detail on the Annuity FYI website and see the press release here.