DIA Top Picks: More Flexibility Added to Lincoln’s Deferred Income Solutions

Lincoln Financial Group recently made a couple of significant changes to their Deferred Income Solutions Annuity.  This deferred income annuity is one of Annuity FYI’s top deferred income annuity picks because of the benefits it already offered before these most recent changes.  Lincoln added more flexibility to this deferred income annuity to keep up with changing consumer demands.  With the government focused on using deferred income annuities in qualified retirement plans and target-date funds, it’s important for insurance companies to innovate and keep up with America’s needs.  This information came from Life Health Pro’s Marlene Y. Satter in the article, “Lincoln tweaks its deferred income annuity.”

Deferred income annuities were designed to make sure that you don’t run out of money during retirement by starting your income payments at a date far into the future.  By deferring your payments, the payment amount is much higher than when you purchase an immediate annuity that pays income over your lifetime.  Some payments don’t begin until you are age 80 or beyond.  For those who reach age 80, the knowledge that they will have significant income to pay for their late retirement puts their mind at ease.  Lincoln realized though that not all investors want to defer their payments for such a long time and that some desire more flexibility overall with the payment start date for their deferred income annuity products.

Two changes that Lincoln made to its Deferred Income Solutions Annuity were to make the minimum deferral period shorter and to make the premium options more flexible.  Annuity owners can start receiving payments as soon as 13 months after buying their annuity.  They can use this deferred income annuity money as an income bridge before they receive Social Security payments.  The main benefit is that income owners have the flexibility to choose when their income will start.  The flexibility of premium options allows you to increase your future income by spreading out premiums over multiple years.  You can do this at any time and any frequency.  Although you have the knowledge of how much your income will be, you can increase that amount by adding premium dollars.

Lincoln’s deferred income annuity also offers the option to add death benefits during the deferral and income phases of the contract.  When you are still in the deferral phase, you can change the payment start date if you need money sooner than you originally anticipated or would like to delay payments further.  One other benefit that you can take advantage of during the income phase is that you can opt to receive six months of income in one payment if you have the need for emergency funds at some point.  Lincoln Financial’s Deferred Income Solutions Annuity already offered great benefits, putting it on Annuity FYI’s top picks list.  With these additional flexible benefits, this deferred income annuity might be the right solution for your retirement plan.  Speak with a financial expert to see if these benefits meet your needs.

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