Ohio National’s New FIA Rider Offers Guaranteed Rising Retirement Income

CINCINNATI – For individuals who are currently at or nearing retirement age and looking for a way to increase their retirement income¹, Ohio National Financial Services has introduced a new ONdex fixed indexed annuity (FIA) rider.

The optional Income Accelerator Guaranteed Lifetime Withdrawal Benefit (GLWB) rider guarantees that as long as withdrawals never exceed the allowed amount, the income it provides will increase each year. In fact, the optional Income Accelerator rider features a distinguishing “Power of 3 Guarantee” that offers three possible ways for income to grow:

1. Guaranteed minimum growth. No matter what the markets are doing, and even if income withdrawals are taken, the rider’s value is guaranteed to increase by at least 3 percent² every year as long as the contract is active. And because income is based on the rider's value, a higher rider value means more income.
2. Interest credits plus. In any of the first 20 index years, where no withdrawals are taken, the rider's value will grow by the greater of the interest credited to the contract’s value plus 3 percent² or the interest credited to the contract value multiplied by 3, up to a maximum of 10 percent.
   3. Annual Step-Up opportunities. At the end of each index year, the rider’s value and the contract’s value are compared. The rider's value will step-up to the contract's value if it's higher, increasing income.

    

   “The optional Income Accelerator rider may provide more certainty for individuals concerned about their retirement assets generating enough income to meet their needs,” said Michael J. DeWeirdt, CFA, FRM, Ohio National’s senior vice president, annuities strategic business.

   "Because it guarantees income for life that will rise for the duration of the contract, it’s capable of helping to address longevity and inflation risks, two challenges that all retirees face. As a strong addition to our annuity line of business, it can offer protection in different market environments and represents Ohio National’s next step into the rapidly expanding fixed indexed annuity market.”

   ¹ Income means: (1) during the accumulation phase, the amount you withdraw from your annuity in a contract year; (2) during the Lifetime Annuity Period, the amount you receive in annuity payments each year.

   

   ² As a percentage of the initial rider value. The amount to which percentages are applied will be adjusted for step-ups or excess withdrawals.