April 05, 2017
First-Of-Its-Kind, Direct-to-Consumer Retirement Savings Solution Offers Guaranteed Income For Life
Consumers now have access to future retirement income through small, consistent contributions today
Saving for retirement can be difficult, especially for middle-income consumers. They don’t always understand complex retirement savings options, they struggle to balance the financial demands of today with saving for tomorrow and they worry about market volatility.
Today, Nationwide launched a direct-to-consumer solution, Guaranteed Retirement Income from NationwideSM, that provides guaranteed retirement income every month for life in exchange for small, consistent contributions over time. It is designed to help middle-income consumers who want some certainty in their retirement savings portfolio.
Guaranteed Retirement Income from Nationwide also addresses two substantial obstacles that limit consumers’ access to traditional retirement savings vehicles. First, many consumers do not use advisors to plan for their financial future. According to the Certified Financial Planner Board, more than half of Americans with a household income of $50,000 or more do not work with a financial advisor1, and most retirement savings options are often too complex to understand without an advisor’s help. Second, they lack access to an employer-sponsored retirement plan. According to The Pew Charitable Trusts2, only 58 percent of workers in the U.S. have access to those plans.
“Guaranteed Retirement Income from Nationwide is designed to break down barriers, help Americans simplify their retirement savings needs and provide a solution to uncertainties about their financial future,” said Kirt Walker, president and chief operating officer of financial services, Nationwide. “Nationwide is committed to providing all Americans with innovative solutions that can help bridge the gap between what they need to live a financially secure retirement and what they’re actually saving.”
Guaranteed Retirement Income from Nationwide addresses the unmet retirement savings needs of many Americans. It is:
- Accessible – Consumers who opt for Guaranteed Retirement Income from Nationwide will sign up and manage their accounts entirely online; there are no fees to sign up – nor for on-going administration. And, contributions can be as little as $10 per month or $120 a year.
- Dependable – It is built as a fixed annuity, so it’s not tied to the stock market and consumers won’t need to worry about their retirement savings with every dip.
- Flexible – Participants can contribute between $120 and $12,000 a year for 15 years or until they are 65, whichever is the longer period of time. The more customers contribute, the more they will receive in retirement income. And, they have the option of contributing monthly, quarterly or annually and can increase or decrease their contributions at any time.
Before signing up, consumers can use an online calculator to determine the future monthly payments that they will receive based on their current age and amount and duration of contributions. People with existing accounts can use a “what if” calculator after logging in to simulate changes to contributions and potential outcomes.
“Our research found that most consumers are comfortable managing their finances online, and fewer middle-income consumers are using financial advisors to help with retirement planning,” said Eric Henderson, senior vice president of life insurance and annuities at Nationwide. “We also know that these consumers prefer to conduct upfront product research online. Guaranteed Retirement Income from Nationwide provides consumers with an online retirement income savings option that doesn’t require a large initial investment.”
Pilot program begins in Arizona
Beginning in March 2017, Guaranteed Retirement Income from Nationwide is available exclusively to residents of Arizona between the ages of 35 and 70. Nationwide chose Arizona for the pilot because the state’s middle-market demographics reflect the country’s and the company’s solid brand presence and awareness in the state. If successful, the company plans a national launch for Guaranteed Retirement Income from Nationwide.
For more information about Guaranteed Retirement Income from Nationwide, visit www.nationwide.com/retirementincome or call 1-888-891-0031.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.