Nationwide has announced that it will roll out a new suite of in-plan annuity products and partnerships with industry leaders, including at least five new solutions the company plans to implement from late 2020 through 2021.
“We know this is not a one-size-fits-all problem, and we’re confident that a suite of solutions will give plan sponsors the flexibility to select the option that’s best for their participants,” says Eric Stevenson, president of Nationwide Retirement Plans. “Our approach is unique, by going beyond retirees’ well-established need for guaranteed income, to also address their growing need to protect principal. It’s the combination of both benefits that makes our approach a game-changer for our industry.”
Nationwide says the Setting Every Community Up for Retirement Enhancement (SECURE) Act opened a new era of opportunity for retirement plan participants by expanding the ability for plan sponsors to help participants live in retirement. For example, the SECURE Act made in-plan annuities within defined contribution (DC) plans such as 401(k)s and 457(b)s more accessible and portable.
Nationwide’s new suite of products will offer a broad range of solutions for plan participants. In December, Nationwide will introduce a new in-plan fixed indexed annuity to provide principal protection with potential for growth based on the return of an index.
Additionally, in 2021, Nationwide will introduce several in-plan lifetime income options that pair income guarantees with target-date funds (TDFs), all designed to be qualified default investment alternative (QDIA) compliant.
“Similar to a target-date fund, we will allow our plan participants to select an investment option and then we’ll take care of the rest of the puzzle by providing a glide path from accumulation into retirement income,” Stevenson says.