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The Select™ Portfolio Deferred Income Annuity helps individuals address three main challenges in retirement: running out of savings due to longevity; the impact of inflation, which erodes purchasing power; and market changes that can reduce the value of a nest egg.
"As people look ahead to retirement, they're looking for flexible options to address a myriad of risks, from economic uncertainty and market volatility to longevity and the rising cost of healthcare," said
Even more impressive is the fact that the annuity is eligible for dividends, which can create real value over time. "The Select™ Portfolio Deferred Income Annuity can put the power of dividends to work, creating the potential for growth-- even during retirement," explains Simbro.
Unique Dividend Feature Provides Flexibility
The new Select™ Portfolio Deferred Income Annuity offers individuals the opportunity to grow their income via nonguaranteed dividends. Individuals can also elect to take any dividends in cash or apply them to increase income, or they can do a combination of both. Although dividends are not guaranteed, the company has paid dividends on eligible life policies every year since 1872.
As a mutual company, Northwestern Mutual is managed for the benefit of the people that own its contracts. Through dividends, it can return to policyowners the money earned over what is needed to pay benefits, run the company and maintain its industry leading financial strength ratings. Financial strength ratings are important because all guarantees in annuities are backed solely by the company behind them.
Individuals can purchase the Select™ Portfolio Deferred Income Annuity where available with a lump sum payment of tax-qualified funds, such as funds held in a 401(k) plan or a traditional or Roth IRA.
"Relying on traditional sources of retirement income isn't a guarantee that you'll have what you need over time," says Simbro. "The Select™ Portfolio Deferred Income Annuity was developed to help plan for longevity since retirements could last 30 years or longer. The goal of a retirement plan is to build strategies that protect assets, address legacy plans and provide income for both the uncertainties and opportunities that come with retirement."
The Select™ Portfolio Deferred Income Annuity adds to a robust suite of retirement income solutions from Northwestern Mutual, including its Select Immediate Income Annuity and Select Deferred Income Annuity, which are key planning tools for the recently launched Northwestern Mutual Retirement Strategy.
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SOURCE Northwestern Mutual