A new annuity product from Lincoln Financial Group was recently announced in an effort to help savers maximize their retirement income on qualified savings. Lincoln IRA Income PlusSM is an optional benefit available with Lincoln variable annuities, according to an article from InsuranceNewsNet.
“This is a very compelling option that helps clients looking for ways to maximize their retirement income taken from their tax-deferred accounts,” said John Kennedy, head of Retirement Solutions Distribution at Lincoln Financial Distributors. “This product furthers our commitment to building out a broad portfolio that provides today’s savers with competitive options for growth and income as they integrate Lincoln variable annuities into their portfolios.”
Apparently, current retirees are conservative about withdrawing from the assets they’ve saved, as indicated by research from LIMRA Secure Retirement Institute on the state of retirement. 4 in 10 pre-retirees are worried about running out of money. Majority of retirees actually only take withdrawals from their qualified, or tax-deferred, savings only to satisfy their required minimum distributions (RDMs), the amount that must be withdrawn from qualified accounts once they reach age 70 ½.
“Today’s retirees look to remain invested in the market, allowing their money to continue to grow. But at the same time, they look for protected income that an annuity with optional benefits can help provide,” said Brian Kroll, head of Annuity Solutions at Lincoln Financial Group. “This new benefit allows them to use a variable annuity with growth and income protection to better support their income needs in the early years of their retirement.”
In general, variable annuities are long-term investment products that offer lifetime income, optional guaranteed growth and income (for an additional fee) and death benefit protection. They are subject to investment risk, market fluctuation and possible loss of principal. They also carry fees and additional charges.
Written by Rachel Summit