Products August 31, 2023

Investment Product and Service Launches

North American Company introduces Goldman Sachs index; Jackson enhances Perspective variable annuity benefit suite; Altruist launches multiple account bundling.

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North American Company Announces New Goldman Sachs Index

The North American Company for Life and Health Insurance, a member company of Sammons Financial Group Inc., announced a new crediting index sponsored by Goldman Sachs.

“We consistently listen to agents and advisers to deliver best-in-class solutions to meet the needs of today’s retirees and those facing retirement,” Rob TeKolste, president of Sammons Independent Annuity Group, said in a statement. “We’re thrilled to offer the Goldman Sachs Index as a unique option for customers.”

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The Goldman Sachs Equity TimeX Index offers exposure to the equity market while providing greater option-cost stability through volatility control and an excess return structure.

The index uses calendar-based signals and price patterns to dynamically adjust exposure to equities at a targeted volatility level of 10%. The index is subject to servicing and rebalancing costs, and a deduction rate that accrues daily is applied.

Jackson Enhances Perspective Variable Annuity Benefit Suite

Jackson National Life Insurance Co., the main operating subsidiary of Jackson Financial Inc., announced the launch of Flex Suite, a menu of add-on living benefits available within its Perspective family of variable annuity products.

Flex Suite includes 14 options of add-on living benefits. Each option has been enhanced from the features previously available through the former LifeGuard Suite of living benefits.

The Flex Strategic Income benefit helps clients who need more income early in retirement. This new benefit guarantees higher withdrawal rates for a defined period, enabling clients to better plan for retirement income by adding further protection against potential market volatility early in retirement.

“Our competitive variable annuity products continue to be a key differentiator for Jackson, and we remain committed to our core value proposition of offering investment freedom so clients can invest without restrictions,” Brian Sward, head of product solutions for Jackson National Life Distributors LLC, said in a statement.

Altruist Launches Multiple Account Bundling

Altruist Corp., a modern custodian for independent RIAs, has launched multiple account bundling, an enhancement to its onboarding process designed to eliminate repetitive tasks.

The enhanced digital experience spares advisors from repeatedly entering client details when opening accounts. With one email, advisers can prompt clients to open multiple accounts—including individual, joint, retirement, trust and custodial—in significantly fewer steps.

“Simple, efficient processes help RIAs improve their operations and better serve their clients,” Harpreet Ahluwalia, Altruist’s chief product officer, said in a statement. “We will continue building the product that RIAs deserve so they can focus more on the work that matters: delivering exceptional financial advice and service.”

Data & Research August 31, 2023

Why Almost Half the ‘Sandwich Generation’ is Delaying Retirement

Nearly one out of every two Americans between the ages of 40 and 59 are using retirement savings to support their extended family and adult children, according to new research from Athene.

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Almost half (47%) of respondents from what is known as the “Sandwich Generation” indicated that they are delaying their retirement plans to provide financial assistance to their elderly extended family members or grown-up children, with a similar 46% using their retirement savings to cover these costs, according to a new survey from Athene. 

Termed the “Sandwich Generation” due to their responsibilities to older parents (mostly Baby Boomers) at one end and their own children at the other, a significant number of individuals aged 40 to 59 find themselves as caregivers for both older and younger relatives, all while trying to reach their own financial objectives. In a survey of Americans in this age group with children, 76% mentioned financially supporting their adult children, and 63% said they offer financial assistance to their aging parents.

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Among all participants, which included more than 400 adults, 55% reported an annual income of less than $100,000. This group’s primary concern was having insufficient retirement savings, followed by worries about being unable to maintain their desired lifestyle during retirement. Among those earning more than $100,000 annually, 66% shared the same concern about maintaining their post-retirement standard of living. 

“For many who are a part of the Sandwich Generation, they may face a unique challenge of supporting multiple generations while also trying to keep their own goals in mind,” the report stated. “This will require a flexible financial plan and empowering their family members to take part in their own financial futures.”

When the Sandwich Generation considers their own retirement, 66% expect to rely on Social Security as a primary source of income, followed by 401(k) accounts and investments. Nearly one-quarter of respondents have included annuities in their financial portfolios.

Of course, with almost 50% prepared to retire without delay, there are another 50% of participants who indicated their support for family members has not affected their retirement objectives.

In addition to direct financial support, members of the Sandwich Generation often are managing the financial issues of their children and parents, according to the researchers. The study uncovered that many household heads are acting as sources of financial education for their adult children, including help with opening bank accounts, explaining credit and debt concepts, discussing budget management and promoting healthy financial habits. Moreover, the reported also noted that some members of the cohort are assisting their parents in planning for health care costs, estate planning and retirement income management. 

An analysis of the study’s responses revealed significant disparities between how men and women approach financial decisionmaking, seeking professional financial guidance and their overall confidence in being financial providers. The study identified that males are more likely to assume sole decisionmaking roles within the household, collaborate with financial professionals and exhibit higher confidence in their ability to care for adult children and extended family. Women expressed less confidence, with only a small percentage seeking assistance from financial professionals. 

The research conducted by Athene surveyed 409 Americans aged 40 to 59 who financially support adult children aged 18 or older and have parents or extended family members residing with them. The survey took place from February 21 to March 7. 

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