Nationwide Partners with Annexus Retirement Solutions to Introduce Lifetime Income Builder: Next-Generation In-Plan Guaranteed Income Solution

Innovative new product with in-plan guarantee designed to maximize retirement income

COLUMBUS, Ohio – Nationwide and Annexus Retirement Solutions today announced that they have partnered to bring to market Lifetime Income Builder, an innovative in-plan guaranteed income solution that is built to help retirement plan participants maximize their retirement income. The new retirement plan investment option, slated to launch later this year, is an expansion of an already successful partnership between Nationwide and Annexus, which has involved bringing new products to market over the past seven years.

Passed in late 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act created opportunities to provide more flexibility and access to annuities within defined contribution retirement plans. In addition to the legislative change, research shows consumers’ need for lifetime income is stronger than ever.

These insights have paved the way for Lifetime Income Builder, a new in-plan guaranteed income solution which provides plan sponsors an efficient structure designed to be QDIA compliant and which offers a combination of liquidity, portability, and ease of use that is currently missing from other in-plan income solutions. This innovative investment option combines guaranteed lifetime income along with a systematic withdrawal strategy that efficiently address the risks a participant faces in generating retirement income.

“It’s an exciting time— a true paradigm shift—for the workplace retirement plan industry and the plan participants we serve,” said Eric Stevenson, President of Nationwide Retirement Plans. “Lifetime Income Builder is the latest in our suite of in-plan guarantees designed to address savers’ growing income needs across all plan types and sizes. This innovative new investment option allows us to better serve existing plan sponsors and consultants while also reaching new clients by providing their participants with the protection they seek, and the guaranteed income they need, to help them achieve a more secure retirement.”

Nationwide and Annexus Retirement Solutions joined forces to create a competitive in-plan solution that helps address the participant’s risk of outliving income, one of the biggest financial challenges faced by many Americans today. This solution embeds a fixed indexed annuity with a guaranteed lifetime withdrawal benefit – the Lifetime Income Builder – directly into a collective investment trust consisting of a series of target date funds. This increases income potential while maintaining a familiar investment experience for the participant due to the target date fund structure.

“Until now, the retirement planning industry hasn’t made it easy for participants to know how to secure their financial future,” said Don Dady, Co-Founder of Annexus, the parent company of Annexus Retirement Solutions. “The risks in retirement require an integrated solution for most participants to optimize the potential income from their retirement plan. Lifetime Income Builder is designed to achieve this objective without requiring participants to give up control or flexibility. In partnering with Nationwide, this solution is easier for a participant to understand given the target date fund framework, with the added benefit of helping to maximize results for the participant to and through retirement.”

Nationwide works closely with a carefully chosen group of top-tier asset managers that meet a best-in-class research process. Working with a leading asset manager, along with the Annexus Retirement Solutions partnership, will help enable the development and distribution of a collective investment trust target date fund series with the added benefit of the Lifetime Income Builder.

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow the firm on Facebook and Twitter.

About Annexus Retirement Solutions

Annexus Retirement Solutions designs products that help working Americans secure their financial futures leading up to, and all the way through, retirement. These solutions are financially engineered to provide defined contribution plan participants a seamless approach to optimize savings, help maximize a source of lifetime income, and protect against the biggest challenge in retirement – outliving their income. Annexus Retirement Solutions is backed by Annexus, the leading independent developer of insured wealth management solutions. In 2019, Blackstone made a strategic investment in Annexus, acquiring a minority stake in the company.

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