Nationwide, Capital Group create target-date with annuity
The product, which will be offered in defined-contribution plans, is engineered to deliver 6% income at retirement.
Nationwide Insurance and Capital Group have created a target-date fund series that incorporates a fixed-indexed annuity with a guaranteed lifetime withdrawal benefit.
The funds, known as the NCIT American Funds Lifetime Income Builder Target Date Series, will be available as an investment option in defined-contribution plans.
The annuity portion of the product was invented by Annexus Retirement Solutions, Nationwide said in a release.
“The TDF Series is financially engineered to deliver a total income of 6% at the projected retirement start date,” Nationwide said.
The TDF series is structured as a collective investment trust. It is set to launch later this fall.
[More: BlackRock lands clients for its 401(k) annuity product]
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