(Nationwide) - As interest rates continue to rise, annuities are feeling the impact – in a good way. By the end of 2022, LIMRA has predicted traditional variable annuity sales will grow by as much as 8%, just as Nationwide has been named the top insurer for variable annuity income guarantees, which are riders sold as add-ons to variable annuities, according to Barron’s.
The Nationwide DestinationSM B 2.0 product with a lifetime income rider garnered Nationwide top spots in the Best Minimum Guaranteed Annual Income for Life category, which was calculated by looking at annuities that pay the minimum guarantee for life even if the value of the underlying investments drops to zero, and in the Best Potential Average Income category, which ranks products that can pay more than their guarantees depending on investment performance.
“Americans are in real danger of outliving their retirement savings as ongoing volatility compounds the existing challenges of greater longevity and an eroding retirement safety net, but rising interest rates also allow us to pass on greater value to our customers,” said Eric Henderson, president of Nationwide Annuity. “We’re excited to be recognized for products that help our customers plan for retirement by offering a solid approach for today with time to build for tomorrow.”
Nationwide’s recognition in the variable annuity income guarantee space comes about a month after announcing enhanced rates for the Nationwide Lifetime Income Rider+® (L.inc+) Suite, a set of three riders that offer guaranteed lifetime income with features designed to offer flexibility and stability during market volatility.
This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.
When evaluating the purchase of a variable annuity, your clients should be aware that variable annuities are long-term investment vehicles designed for retirement purposes and will fluctuate in value; annuities have limitations; and investing involves market risk, including possible loss of principal. Protections and guarantees are subject to the claims-paying ability of Nationwide Life Insurance Company and do not apply to the investment performance of the variable accounts, which are subject to investment risk. Riders are available at an additional cost.
By Kristen Vasas-Samson
August 1, 2022
Variable products are sold by prospectus. Carefully consider the investment objectives, risks, charges and expenses. The product and underlying fund prospectuses contain this and other important information. Investors should read them carefully before investing. To request a copy, go to nationwide.com/prospectus or call 1-800-848-6331.
Variable annuities are issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA, Columbus, Ohio.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side, Nationwide Destination, Nationwide Lifetime Income Rider+ and L.inc+ are service marks of Nationwide Mutual Insurance Company. © 2022 Nationwide
