Nationwide launches updated RILA

Columbus, OH – May 23, 2024 – Amid concerns about the U.S. economy and inflation, investors have turned to annuities for protection against market downturns, with many leaning in to registered indexed-linked annuities for both growth and limited risk exposure. To better meet the needs of these investors, Nationwide has announced the launch of Nationwide Defined Protection Annuity 2.0 (DPA 2.0), bringing to market key features of the original DPA RILA product with more flexibility and customization to enhance the client and advisor experience.

Created with product development partner Annexus, the premier independent designer of indexed retirement solutions, and annuity innovation company Genesis Development Group, Nationwide DPA 2.0 will feature daily protection and floor levels, ten index strategies and free withdrawals. The product’s updated combination of features make it uniquely positioned to succeed with financial professionals and their clients in today’s challenging economic environment.

“With economic stressors continuing to weigh on investors, advisors are focused on offering products to their clients that can help them achieve security in retirement,” said Mike Morrone, vice president of Nationwide Annuity business development. “According to a recent Nationwide Retirement Institute survey, 67% of investors said inflation and signs of a recession have made them rethink if and when they can retire. With DPA 2.0’s updated features, we can help by offering customization that allows investors to pursue investment growth, protect against downside risk and provide for their loved ones.”

Nationwide DPA 2.0 provides three defined protection levels – now applied daily – which limit negative performance. This allows clients to select how much of their investment—90%, 95% or 100%—will be protected from potential losses. DPA also features a fixed strategy and a variety of index strategies that can offer upside potential and fit a broad range of investment objectives. While previously only offering five index strategies, DPA 2.0 will now allow investors to select up to ten strategies at any given time, providing diversification and customization among different indexes, term lengths and protection levels. If clients are happy with their gains during any point before the end of a strategy term, DPA 2.0 features an enhanced Performance Lock Feature that allows clients to lock in their gains to date and prevents them from going back down before the end of the strategy term.

“One of the upsides of rising interest rates is that they allow us to produce better consumer value on almost all types of annuities,” said Aaron Murphy, associate vice president of Nationwide Annuity product management. “The updates to DPA 2.0 make it an innovative, yet simple solution that can help investors with conservative to moderate risk tolerance accumulate assets, while also offering customizable protection from market losses.”

DPA 2.0 will also make accessing money easier, offering free withdrawals of up to 10% of the contract value during the first six years of owning the annuity. Free withdrawals are also available for long-term care or a terminal illness.

“The long-standing partnership between Nationwide and Annexus continues both of our companies’ traditions of designing protection-focused products with the goal of delivering better client outcomes,” said Annexus co-founder Ron Shurts. “Through our collaborative efforts, the enhancements being made to DPA will meet a broader range of investors’ unique needs for protection, growth and flexibility.”