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New RILA from Equitable Offers Protection of Lifetime Income


Equitable, the brand name of the retirement and protections subsidiaries of Equitable Holdings, Inc., has just announced a new registered index-linked annuity (RILA) combining lifetime income options with protection from equity market volatility, according to a recent article from InsuranceNewsNet. 

The new annuity product, Structured Capital Strategies Income (SCS Income) is geared towards investors who are nearing or just beginning retirement, allowing them to take advantage of equity market growth potential while partially protected against market declines. 

“As retirement investors grapple with the idea that the bull market could falter while healthcare and other retirement costs appear likely to rise, coupling access to market growth potential with some level of protection against volatility and a predictable, sustainable income can help individuals achieve financial well-being in retirement,” said Steve Scanlon, Head of Individual Retirement at Equitable.

SCS Income boasts innovative ways to create guaranteed retirement income, including the ability to start taking income immediately from a registered index-linked annuity. Additional income options include the level income option, providing an income rate initially based on age at the time of purchase that does not decrease, and the accelerated income option, which provides a higher rate of income in early retirement when people may have higher expenses. This income is initially based on the age at which the product is purchased, only decreasing if the account balance drops to zero by means other than excess withdrawal.

As long as the contract holder has not taken a withdrawal, both income options offer opportunities to increase income by 5% of contributions per year. This extra growth is credited for up to 20 years, or the contract maturity date, whichever comes first.

Investors are also able to choose to protect against up to the first -10% or -15% of market losses during the investment period, all while benefiting from any gains up to a cap. The Dual Direction feature is also available, allowing clients to realize potential for some upside returns even in down markets.

According to research conducted by the Alliance for Lifetime Income, individuals’ concerns about financing their retirement increased during the pandemic. 80% of American pre-retirees are at least somewhat anxious that their savings may not last through retirement. Additionally, 77% of U.S. consumers surveyed by Equitable say that “losing value in their investments will affect their ability to reach their retirement goals.” Approximately 60% say it’s extremely or very important that retirement savings and investment vehicles provide downside protection. </span

Written by Rachel Summit

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