Explore our case studies or read the FAQs below to learn more.
Expand all
Lifetime income funds are not automatically more conservative. Some solutions offer as much growth opportunity as traditional investments because of the way they are designed and the way the income component is incorporated into the overall target date fund.
Our solutions don’t have surrender fees when you transfer your balance or withdraw money from the investment, so you have flexibility if you change your mind. However, if you transfer out of these investment options, you may lose some or all of your lifetime income benefit.
The fees may be higher than what you’re used to seeing in your plan’s investment lineup. However, the overall cost is typically lower than similar lifetime income solutions offered outside the plan. That’s because these lifetime income investments are offered within a group retirement plan, so you benefit from reduced expenses as a group.
In retirement, the income amount will be taken as a systematic withdrawal from your investment balance, so there is no need to annuitize or otherwise lose access to your money. Even if your investment balance is depleted, income continues because it’s backed by an insurance company. Future income payments could be reduced if withdrawals exceed a certain amount, but your access to lump sums is not eliminated as long as you have a positive investment balance. That means your beneficiaries have access to any remaining balance.
No. Unlike traditional retail annuities, which are typically sold outside of a group plan and could come with higher costs and limited flexibility, these lifetime income solutions are built into your employer-sponsored retirement plan. This means the investments benefit from institutional pricing, which generally results in lower fees and you maintain access to your money.
You may be able to roll over your balance into another retirement plan if it offers the same investment option, allowing you to retain your lifetime income. An IRA product that offers an option to retain an lifetime income may also be available. However, any available IRA investment vehicle may have different investments, fees and features.
Log in to your retirement plan website to learn more, or ask your employer about the options in your plan.