Many people nearing retirement age have no or limited retirement savings. In reality, the U.S. Government Accountability Office reported in 2016 that over half of families led by someone aged 55 and older had no retirement savings. And, as the Social Security retirement age grows and inflation strikes wallets across the country, it’s reasonable that many older folks are concerned about paying for their living expenses in retirement. One fund investor, Annexus Retirement Solutions, established a new strategic relationship with State Street Global Advisors, the world’s 4th largest asset manager, at the end of March 2022 to develop a lifelong retirement income solution for defined contribution plan members. The new product, which combines a target-date retirement fund with fixed indexed annuities and a guaranteed lifetime withdrawal benefit, will be Annexus Retirement Solutions’ second product offering based on its patent-pending Lifetime Income Builder. It intends to give plan members up to 6% income for the rest of their lives. One continuing issue about this product is portability, or workers’ ability to transfer from one platform to another. To solve this, Annexus Retirement Solutions offers access to its Annexus Retirement Data Exchange, which helps achieve a more efficient interaction and administration between recordkeepers.
How can retirement savers benefit?
This new retirement product will be available via Annexus Retirement Solutions as part of its defined contribution plan offerings. State Street Global Advisors will provide the underlying asset management and index for the annuity element. As the member approaches retirement age, most target-date funds shift from a riskier asset allocation to fixed-income solutions. The fixed-income solution would include the Annexus integrated Lifetime Income Builder in this case. The firm intends to offer its annuity part via three top-tier insurance carriers to provide lifelong income. The multi-carrier approach enables insurance carriers to bid on prices every month, potentially reducing costs and achieving better results. If a participant’s account balance runs out before the end of their life, the fund will provide a guaranteed 4.5% income payment for the rest of the participant’s life.
Bottom line
Annexus Retirement Solutions has introduced a new product offering in collaboration with State Street Global Advisors, the world’s 4th largest asset manager. The product, which is a hybrid of a target-date retirement fund and a fixed indexed annuity, attempts to alleviate America’s retirement income issue by delivering a fixed income solution for life. Payments may reach as much as 6% of the fund’s high mark, with a 4.5% income guarantee even if the account value hits zero before a member dies. Retirement savers may be confident that their funds will endure indefinitely.
Contact Information:
Email: [email protected]
Phone: 4022508277
Bio:
Carl Wyllie is an advisor focused in areas of Medicare, retirement, estate planning, and crisis planning. Carl works with individuals of all ages in planning for their retirement. He is uniquely effective in building working relationships between their families and elder care law attorneys to assist them in avoiding a healthcare crisis. Carl is particularly sensitive to helping provide the means for his clients to maintain their independence and dignity when a change in their health occurs due to the natural aging process.
