Product & Service Launches – 5/2/24

TIAA and Nuveen Lifetime Income Default Target-Date Offerings Approach $35 Billion in AUM

Assets in TIAA and Nuveen’s suite of lifetime income target-date solutions across corporate, educational, governmental, and healthcare retirement plans are now approaching $35 billion in AUM.

TIAA has a suite of lifetime income-embedded target-date solutions to meet institutional clients’ needs, including TIAA RetirePlus, the TIAA Secure Income Account and the Nuveen Lifecycle Income CIT Series.

“As we have demonstrated with the rapidly accelerating demand for TIAA RetirePlus, TIAA is uniquely positioned to help solve America’s retirement crisis,” Colbert Narcisse, chief product officer for TIAA, said in a statement. “These inaugural wins for NLI, coupled with TIAA’s recently announced distribution agreement with Empower, position the firm for significant growth.”

Beginning in March 2024, NLI, a target-date collective investment fund solution for defined contribution plans with embedded lifetime income through SIA, was activated for 19 plan sponsors who chose to map investments from their prior default solutions. NLI was launched in August 2023.

“We partner with many of the nation’s top retirement plan advisors and consultants who see the need for lifetime income in 401(k) plans,” Brendan McCarthy, head of Nuveen Retirement Investing, said in a statement. “They recognize NLI as an easy solution for employers to provide their employees with the option of a guaranteed paycheck for life through the familiar structure of a target-date fund.”

Pacific Life Enhances Suite of Annuities to Address Retirement Income Needs

Pacific Life enhanced the features of three of its optional benefits—Future Income Generator, Enhanced Income Select 2, Protected Investment Benefit—available with certain advisory and traditional variable annuities for an additional cost.

Clients who select the Future Income Generator optional benefit with certain variable annuities can access the expanded investment-option lineup, with some options offering up to 100% equity exposure. Pacific Life indicated that strategy allows clients to grow and lock in a higher protected base from which to take withdrawals without an increase in the cost of the benefit.

Those looking forward to spending more money early in retirement can receive higher withdrawal percentages using Enhanced Income Select 2, an optional benefit available with certain Pacific Life variable annuities. As of May 1, those percentages have increased. A higher income level early in retirement, and the flexibility to stop and start withdrawals, may be appealing to more active retirees, according to Pacific Life.

Protected Investment Benefit is available in only New York for an additional cost with certain Pacific Life variable annuities. It offers 100% downside protection with unlimited growth potential and up to 80% equity exposure with the 7-year term option. The firm stated this is an option for clients nearing retirement who need growth but want to take some of the emotion out of investing.

Cetera Launches Active ETF Research Select List

Cetera Financial Group announced that Cetera Investment Management has launched its active exchange-traded funds research select list available to Cetera-affiliated professionals.

CIM’s newest select list features 50 active ETFs across 26 equity, fixed income and alternative asset classes, arming Cetera financial professionals with a thoroughly analyzed and vetted list of recommendations in a rapidly growing investment segment.

“We are proud to become one of only a handful of firms offering an active ETF recommended list to help educate our advisers about this growing investment structure,” Gene Goldman, Cetera’s chief investment officer, said in a statement. “ We knew our affiliated professionals needed a tool to better understand the ETFs available to offer the best possible guidance to their clients—and today we have delivered that crucial tool.”

Jackson Adds Protected Lifetime Income Benefit to RILA Suite

Jackson National Life Insurance Company launched +Income, an add-on benefit available for an additional charge, offering guaranteed lifetime income through Jackson’s Market Link Pro suite of registered index-linked annuities.

The benefit enables clients to create an immediate income stream or defer withdrawals, providing the opportunity to grow income over time. RILAs are long-term, tax-deferred insurance contracts designed for retirement. They are subject to investment risk, the value will fluctuate, and loss of principal is possible. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met.

“Across the industry, RILAs are helping risk-averse consumers unlock protection opportunities and ways to potentially grow their assets,” Brian Sward, head of product solutions for Jackson National Life Distributor, said in a statement. “With the addition of +Income, Jackson’s RILA offerings can now provide clients with guaranteed retirement income that can withstand unexpected market events, together with the same benefits they’ve become accustomed to when utilizing RILAs in their portfolio.”

Jackson’s Market Link Pro suite offers five index options that can be used in any combination, along with the flexibility to allocate funds through three crediting methods.