Retirement investors are offered new options along with lower cost investment choices.
Addressing customers’ desires for simplicity, flexibility and cost efficiency in their retirement planning,Transamerica has made enhancements to the Transamerica Income EdgeSM living benefit rider, alongwith launching two new lower cost investment options.Introduced in 2016, Transamerica Income Edge is a living benefit available with most Transamerica variable annuities aimed at enabling Baby Boomers and Generation X individuals to effectively plantheir retirement. Changes to the optional living benefit include a fee reduction, along with shortening the waiting period from five years down to three years for a customer to be eligible to start receiving ahigher living benefit withdrawal percentage.“This is good news for our customers who count on Transamerica’s variable annuity living benefit riders for a portion of their retirement income,” said Joe Boan, senior vice president with Transamerica. “Notonly are we reducing their cost, but we are shortening their required waiting time by 40 percent,allowing them the opportunity to receive higher payouts sooner.”With the Transamerica Income Edge living benefit, if investors wait three years after investing to begin taking withdrawals, they would be eligible for an automatic 1 percent increase on their withdrawal percentage, which escalates based on a tiered age scale. After three full years, investors with a single life benefit who begin withdrawing between the ages of 59-64 can receive 5 percent income for life,those who begin withdrawing while in the 65-79 age range can receive 6 percent income for life, and if waiting until age 80 or older, the investor could receive 7 percent income for life.“We recognize the challenges people face in preparing for retirement,” Boan said. “A Transamerica variable annuity combined with the living benefit rider is one solution that can help grow and protect retirement savings, in addition to providing lifetime income.” All guarantees, including optional benefits,are backed by the claims-paying ability of the issuing insurance company.In addition to making changes to the living benefit, Transamerica launched two new index portfolios approved for rider eligibility through Transamerica Income Edge.TA U.S. Equity Index gives access to broad market exposure that seeks investment results corresponding generally to the performance of the S&P 500 Index. This investment option is also subject to the risks associated with equity investments, including market volatility and decline. TAI nternational Equity Index provides access to large and mid-cap equities in developed markets outside the U.S. and Canada. This investment option is also subject to equity investment risks as well as additional risks associated with foreign investment, including potentially higher market volatility andlower liquidity of the securities in which the investment option invests.“We know from listening to financial advisors and our customers that people want options when it comes to investing and saving for retirement,” Boan said. “These two new index portfolio offerings can meet the needs of those who are looking for growth potential in a cost-efficient investment option.”To learn more about Transamerica Income Edge and Transamerica’s broad range of variable annuities and other retirement and investment products, visit www.Transamerica.com.