BALTIMORE, June 9, 2017 /PRNewswire/ -- Addressing customers' desires for simplicity, flexibility and cost efficiency in their retirement planning, Transamerica has made enhancements to the Transamerica Income EdgeSM living benefit rider, along with launching two new lower cost investment options.
Introduced in 2016, Transamerica Income Edge is a living benefit available with most Transamerica variable annuities aimed at enabling Baby Boomers and Generation X individuals to effectively plan their retirement. Changes to the optional living benefit include a fee reduction, along with shortening the waiting period from five years down to three years for a customer to be eligible to start receiving a higher living benefit withdrawal percentage.
"This is good news for our customers who count on Transamerica's variable annuity living benefit riders for a portion of their retirement income," said Joe Boan, senior vice president with Transamerica. "Not only are we reducing their cost, but we are shortening their required waiting time by 40 percent, allowing them the opportunity to receive higher payouts sooner."
With the Transamerica Income Edge living benefit, if investors wait three years after investing to begin taking withdrawals, they would be eligible for an automatic 1 percent increase on their withdrawal percentage, which escalates based on a tiered age scale. After three full years, investors with a single life benefit who begin withdrawing between the ages of 59-64 can receive 5 percent income for life, those who begin withdrawing while in the 65-79 age range can receive 6 percent income for life, and if waiting until age 80 or older, the investor could receive 7 percent income for life.
"We recognize the challenges people face in preparing for retirement," Boan said. "A Transamerica variable annuity combined with the living benefit rider is one solution that can help grow and protect retirement savings, in addition to providing lifetime income." All guarantees, including optional benefits, are backed by the claims-paying ability of the issuing insurance company.
In addition to making changes to the living benefit, Transamerica launched two new index portfolios approved for rider eligibility through Transamerica Income Edge.
TA U.S. Equity Index gives access to broad market exposure that seeks investment results corresponding generally to the performance of the S&P 500 Index. This investment option is also subject to the risks associated with equity investments, including market volatility and decline. TA International Equity Index provides access to large and mid-cap equities in developed markets outside the U.S. and Canada. This investment option is also subject to equity investment risks as well as additional risks associated with foreign investment, including potentially higher market volatility and lower liquidity of the securities in which the investment option invests.
"We know from listening to financial advisors and our customers that people want options when it comes to investing and saving for retirement," Boan said. "These two new index portfolio offerings can meet the needs of those who are looking for growth potential in a cost-efficient investment option."
To learn more about Transamerica Income Edge and Transamerica's broad range of variable annuities and other retirement and investment products, visit www.Transamerica.com.
With a history that dates back more than 100 years, Transamerica is recognized as a leading provider of life insurance, retirement and investment solutions, serving millions of customers throughout the United States. Recognizing the necessity of health and wellness during peak working life in order to enhance the prospects for a lifetime of financial security, Transamerica's dedicated professionals work to help people take the steps necessary to live better today so they can worry less about tomorrow. Transamerica serves nearly every customer segment, providing a broad range of quality life insurance and investment products, individual and group pension plans, as well as asset management services. In 2016, Transamerica fulfilled its promises to customers, paying more than $7.2 billion in insurance and annuity benefits, including return of annuity premiums paid by the customer. Transamerica's corporate headquarters is located in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa. Transamerica is part of the Aegon group of companies. Based in the Netherlands, Aegon is one of the world's largest providers of life insurance, pension solutions and asset management products, operating in more than 20 markets worldwide. For the full year of 2016, Aegon managed $784 billion in revenue generating investments. For more information, please visit www.transamerica.com.
About Transamerica Variable Annuities
Variable annuities are long-term, tax-deferred vehicles designed for retirement purposes and are subject to investment risk, including possible loss of principal. An investor may not make a direct investment in the index. Investment option names may vary from their corresponding underlying fund names. Please see the variable annuity prospectus for underlying fund names. Transamerica Series Trust underlying funds are advised by Transamerica Asset Management, Inc. Variable annuities are issued by Transamerica Life Insurance Company in Cedar Rapids, Iowa, and Transamerica Financial Life Insurance Company in Harrison, New York (Transamerica). Annuities are underwritten and distributed by Transamerica Capital, Inc. Transamerica Financial Life Insurance Company is licensed in New York. For more information, visit www.transamerica.com/individual/products/annuities. All policies, living benefits, and forms may vary by state, and may not be available in all states. Rider form numbers are ICC16 RGMB510616(IS), ICC16 RGMB510616(IJ), NIC16 RGMB510616(IS), and NIC16 RGMB510616(IJ).
For more information on a variable annuity, please go to www.transamerica.com for prospectuses. You should carefully consider the objectives, risk, charges and expenses of an investment before investing. Read them carefully before you invest.
Jim Van Someren
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