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Products February 22, 2011
Transamerica Broadens Suite of Retirement Income Solutions
Transamerica introduced Retirement Income Max, an optional living benefit
rider, available with Transamerica’s suite of
variable annuities.
Reported by PLANADVISER staff
The rider, available for an additional fee, is specifically designed to help meet the needs of those who are looking to maximize their retirement income.
According to the company, the Retirement Income Max rider provides withdrawal percentages of 6.5%, 5.5%, and 4.5% annually for the single life option, based on the client’s age when they start taking withdrawals. Additionally, Retirement Income Max offers growth on growth potential with Transamerica’s notable Monthiversary and 5% growth rate features.
In up markets, it locks in the highest Monthiversary value and automatically steps up the withdrawal base (the value used to calculate the rider withdrawal amount) to this new value. In down markets, it provides 5% annual compounding growth to the withdrawal base for up to 10 years, in rider years a withdrawal is not taken. If the withdrawal base was stepped up in the previous year, the 5% growth will be based on that amount, thereby providing the growth on growth potential.
The initial Retirement Income Max rider fee is 1.00%; this is an annual percentage of the withdrawal base.