The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
Nationwide Financial said it continues to enhance its suite of products and features to help advisors provide retirement security for both spouses.
The company announced an increase in joint payout rates for The Nationwide Lifetime Income Rider (Nationwide L.inc) on its Nationwide Destinationsm Series 2.0 variable annuities.
According to a release, lifetime payout rates for Nationwide L.inc with joint option will increase by 0.25 percent for most age bands, meaning payouts for someone starting income at age 65 will be 4.75 percent instead of 4.5 percent.
"Too many couples make the mistake of inadequately planning for the Income Replacement needs of surviving spouses," said Eric Henderson, senior vice president of Life Insurance and Annuities for Nationwide Financial. "We believe clients want peace of mind, knowing that both spouses will have the retirement income they need, regardless of which one passes away first."
In addition to Nationwide L.inc with the joint option, Nationwide's Spousal Protection Feature delivers a guaranteed death benefit covering either spouse, regardless of who passes away first, even on IRAs where there's a single owner.
"When you combine this increase in our joint payout rates with Nationwide L.inc's seven percent simple interest roll-up, you get one of the best lifetime income guarantees in the industry for married couples," Henderson said. "Add to that the unique Spousal Protection Feature we offer with our death benefits, and married clients can enhance their Income Replacement plan with two layers of protection."
Nationwide Mutual Insurance Company is a diversified insurance and financial services organization.
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