In an effort to provide customers with simplicity, flexibility and cost efficiency in retirement planning, Transamerica has enhanced its Transamerica Income EdgeSM living benefit rider as well as launching two new lower cost investment options, according to a recent PR Newswire release.
Transamerica Income Edge is a living benefit that is available with most variable annuities from Transamerica. Changes to the optional living benefit, that was initially introduced in 2016, include a fee reduction and a shortening of the waiting period for customers to be eligible to start receiving a higher living benefit withdrawal percentage. This period went from five years down to three.
“This is good news for our customers who count on Transamerica’s variable annuity living benefit riders for a portion of their retirement income,” said Joe Boan, senior vice president with Transamerica. “Not only are we reducing their cost, but we are shortening their required waiting time by 40%, allowing them the opportunity to receive higher payouts sooner.”
When Transamerica Income Edge investors wait three years after investing to begin taking withdrawals, they become eligible for an automatic 1% increase on their withdrawal percentage, which escalates based on a tiered age scale. After three years, investors with a single life benefit who begin withdrawing between the ages of 59-64 can receive 5% income for life. For those who begin withdrawing while in the 65-79 age range, 6% income for life can be expected. And if investors wait until age 80 or older, the investor can receive 7% income for life.
“We recognize the challenges people face in preparing for retirement,” Boan stated. “A Transamerica variable annuity combined with the living benefit rider is one solution that can help grow and protect retirement savings, in addition to providing lifetime income.”
Transamerica has also launched two new index portfolios approved for rider eligibility through Transamerica Income Edge. TA U.S. Equity Index provides broad market exposure and corresponds generally to the performance of the S&P 500 Index. It is important to point out that this option is also subject to the any risks associated with equity investments, including market volatility. TA International Equity Index provides access to large and mid-cap equities in markets outside the U.S. and Canada. This investment option is also subject to equity investment risks as well as those associated with foreign investment, including higher market volatility and lower liquidity.
“We know from listening to financial advisors and our customers that people want options when it comes to investing and saving for retirement,” Boan said. “These two new index portfolio offerings can meet the needs of those who are looking for growth potential in a cost-efficient investment option.”
Written by Rachel Summit