UBS and Genworth team up on life option

UBS Global Asset Management and Genworth Financial Inc. has announced their collaboration on a guaranteed income for life option for 401(k) participants. The new benefit will go with UBS’s target retirement funds and other investment options. It should be available to investors by the end of the first quarter. The new benefit will be portable for employees and will allow them to pass assets to beneficiaries. The idea is to provide steady income while using UBS’s 25-year asset allocation approach: Employees can withdraw 5% of their highest locked-in portfolio value for life, even if the withdrawals draw down all of the portfolio’s value. Participants can also raise their guaranteed income if their portfolio rises in total value. However, market declines won’t affect the level of guarantee. Program participants can enroll in the benefit beginning at age 50 and may start taking withdrawals at 65. The benefit is still pending regulatory approval.