TOPEKA, Kan., Jan. 9, 2013 /PRNewswire/ -- Security Benefit Corporation, a leading provider of retirement savings and income vehicles for America's pre- and post-retirees, today introduced Foundations Annuity, a next-generation fixed indexed annuity (FIA) that can help address Americans' need for sustainable income during retirement with a unique combination of features.
Security Benefit Life Insurance Company, a Guggenheim Partners company, designed the Foundations Annuity to protect principal, provide a guaranteed income stream for life and an interest-crediting opportunity tied to equity-market growth, and allow retirees greater liquidity than was associated with prior-generation FIAs.
According to Doug Wolff, President of Security Benefit Life Insurance Company, his firm's latest offering represents a significant step forward in the financial industry's efforts to help Americans meet the retirement income challenge.
"In this market environment, where future risks to retirees' already damaged capital are as great as they have ever been, FIAs may be a compelling choice," says Wolff. "Combining Foundations Annuity and its leading-edge design with traditional drawdown strategies may greatly enhance the likelihood of generating a steady stream of income retirees cannot outlive."
Wolff adds that Foundations Annuity was designed to provide a "missing element" in retirement drawdown plans. Security Benefit engaged a leading actuarial consulting firm to conduct a research project designed to understand the optimal product mix for generating retirement income. The results of the study underscored that FIAs with guaranteed lifetime withdrawal benefits (GLWBs) combined with traditional portfolio drawdown strategies significantly increase the probability of providing lifetime income. Further, the data show that the combination of an FIA with a GLWB rider and traditional mutual fund drawdown strategy was more likely to sustain annual income throughout retirement than either a traditional mutual fund drawdown strategy alone or a combination of a variable annuity with GLWB rider and a traditional mutual fund drawdown strategy.
Foundations Annuity capitalizes on the superior general account capabilities of Guggenheim Investments, a subsidiary of Guggenheim Partners, to offer an innovative feature set designed specifically to maximize guaranteed income. In addition to a guarantee of principal and a 1% bonus on first-year premium payments, Foundations Annuity offers three interest-crediting strategies tied to potential equity market growth.
Foundations Annuity also offers an optional GLWB Rider with attractive guaranteed payout rates and less complexity than many FIAs.
"Simplicity, transparency in product structure, and reasonable expenses are critical to helping clients understand and embrace solutions to the retirement income challenge," said Wolff. "We have built these into Foundations Annuity and think it will be the 'go-to' product for financial advisers and their retirement-oriented clients."
Security Benefit, currently celebrating its 120th year of helping Americans build retirement savings, will issue the new FIA through its Security Benefit Life Insurance Company subsidiary. More information on Foundations Annuity and the Security Benefit research on retirement income product combinations are available at www.RetirementIncomeChallenge.com.
About Security Benefit Corporation
Founded in 1892, Security Benefit Corporation, a Guggenheim Partners Company, is a leading provider of savings and income solutions for America's pre- and post-retirees. Security Benefit Corporation targets multiple wealth segments and channels of distribution through an independent, merit-based distribution structure. By leveraging Guggenheim Investments' superior general account management capabilities into highly competitive products, Security Benefit Corporation focuses on the retirement savings market providing a full range of services to independent distributors including broker/dealers, IMOs, and other financial service providers. Security Benefit is indirectly controlled by Guggenheim Partners, LLC. To learn more about Security Benefit, visit www.securitybenefit.com.
For more information, please contact:
Dan Mahoney, Communications Strategy Group
Michel' Cole, Security Benefit Corporation
The Security Benefit Foundations Annuity (Form 5800 (11-10) and ICC10 5800 11-10)), a fixed indexed flexible premium deferred annuity contract, and the Guaranteed Lifetime Withdrawal Benefit Rider (GLWB) (Form 5821 (5-11) and ICC11 5821 (5-11)), an optional rider available for purchase with the Security Benefit Foundations Annuity, are issued by Security Benefit Life Insurance Company. Product features, limitations and availability may vary by state. Not available in all states.
Guarantees provided by annuities are subject to the financial strength of the issuing insurance company. Annuities are not FDIC insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity.
SOURCE Security Benefit Corporation