Lincoln Financial Group Launches ‘IRA Income Plus’ Annuity Rider

Lincoln Financial Group has introduced the “Lincoln IRA Income Plus” optional benefit rider, designed to help owners of Lincoln variable annuities maximize their retirement income on qualified savings being drawn from individual retirement accounts (IRAs).

Lincoln IRA Income Plus is an optional benefit available with Lincoln variable annuities for an additional cost and is designed to help maximize retirement income earlier in retirement years, explains John Kennedy, head of retirement solutions distribution at Lincoln Financial Distributors.

Explaining why the firm is offering this new product, Kennedy cites LIMRA Secure Retirement Institute research showing current retirees are often overly conservative about withdrawing from the assets they’ve saved. According to the research, four in 10 near-retirees are worried about running out of money. But at the same time, the data shows the majority of actual retirees take withdrawals from their tax-deferred savings only to satisfy their required minimum distributions (RMDs), the amount that must be withdrawn from qualified accounts once they reach age 70 1/2.

“Today’s retirees look to remain invested in the market, allowing their money to continue to grow. But at the same time, they look for protected income that an annuity with optional benefits can help provide,” says Brian Kroll, head of annuity solutions at Lincoln Financial Group. “This new benefit allows them to use a variable annuity with growth and income protection to better support their income needs in the early years of their retirement.”

Lincoln explains that variable annuities are long-term investment products that offer a lifetime income stream, options for guaranteed growth and income (available for an additional charge), and death benefit protection. They are subject to market fluctuation, investment risk, and possible loss of principal, and have unique fees and charges.

Specific features of the Lincoln IRA Income Plus include guaranteed growth for future income, as the income base increases annually by the greater of 6% simple or account value growth; two options for income starting at age 70 or later (single life only); and a dollar-for-dollar GOP death benefit.

More information about the new solution is available here.