Nationwide adds Income America in-plan guarantee for managed account participants

Columbus, OH – April 24, 2023 – According to a 2022 Nationwide Retirement Institute survey, seven in 10 plan sponsors are interested in guaranteed lifetime income investment options and nearly half (48%) of participants report they are interested in contributing to one as part of a managed account. Nationwide is seeing this interest translate to greater traction for its suite of in-plan guarantee solutions, announcing today that it has made Income America^TM  5ForLife available for managed account programs on its platform.

Nationwide continues to believe that in-plan guarantees are not a one-size-fits-all solution. Now the company provides two ways for plan sponsors and participants to access Income America 5ForLife, a series of bank-maintained collective investment funds for which Wilmington Trust, N.A. is trustee.

Income America 5ForLife in Managed Accounts: Starting this month, Income America is available as an investment option to the managed account programs on the Nationwide platform, starting with Nationwide ProAccount®. This provides a great new solution for the “do-it-for-me” investor that wants advice on how to invest their retirement plan assets, but needs help in determining an appropriate allocation to a guaranteed lifetime income investment option.

Income America 5Forlife Target Date Series: The Income America 5ForLife Target Date Fund Series that launched in 2021 continues to be available. Participants can contribute to or transfer assets into one of these funds, which are a great option for plans and participants looking for a simplified “help-me-do-it” solution built into a target date fund. According to Nationwide’s 2022 survey, more than half of participants are interested in guaranteed lifetime income investment options as part of a target date fund.

“When the SECURE Act of 2019 opened the door for the expansion of in-plan guarantee solutions, we were among the first to market with a suite of products to help participants protect their assets and convert their savings to income in retirement,” said Eric Stevenson, president of Nationwide Retirement Solutions. “Since then, we have been helping plan sponsors, financial professionals and consultants understand how protected retirement solutions like in-plan guarantees may be a fit for participants’ needs. These efforts are really starting to pay off with the traction in adoption starting to occur.”

Interest in in-plan guarantees continues to grow

“The recent economic environment has driven greater interest in solutions that offer protection in retirement – whether that’s providing downside protection or helping ensure participants can turn their savings into a stream of income they won’t outlive,” Stevenson said.

According to Nationwide’s 2022 survey, more than four in 10 employees (41%) would likely roll over retirement savings into a guaranteed lifetime income investment option if they were able to. Plan sponsors reported high levels of favorability (75% private sector and 86% government) and comfort (64% private sector and 73% government) with the addition of guaranteed lifetime income investment options within employer-sponsored retirement plans.