March 26, 2013 by Randy Timm
According to a recent study conducted by the Employee Benefit Research Institute, 28 percent of workers are not at all confident and 21 percent are not too confident they’ll have enough savings to live comfortably in retirement.1
It’s more than likely this trend will continue into the future as participation in Defined Benefit plans declines and fewer Americans rely solely on Social Security for retirement income. In fact, participation in Defined Benefit plans fell from 38% to 18% between 1980 and 2010.2
To alleviate some of that uncertainty, Aviva created TargetBenefitSM Annuity with an optional TargetPaySM or TargetPaySM Plus Income Rider. Either rider provides a simple Statement of Benefits each year that will show what your future targeted income will be, similar to a statement from a defined benefit plan.*
Unlike some annuities with income riders, this new product does not have confusing roll-up rates, income account values, restarts, or payout percentages.
Financial professionals can receive a sample illustration and Statement of Benefits by calling 800.362.1097.
1 Helman, Ruth, Mathew Greenwald & Associates; and Nevin Adams, J.D., Craig Copeland, Ph.D., and Jack VanDerhei, Ph.D. (2013). Employee Benefit Research Institute. Issue Brief. March 2013 (No. 384) Pg 1. The 2013 Retirement Confidence Survey: Perceived Savings Needs Outpace Reality for Many. http://www.ebri.org/pdf/surveys/rcs/2013/EBRI_IB_03-13.No384.RCS.pdf.
2Schemo,Diana J. (2010). Coming Boomer pension cuts: what impact on economy? Remapping Debate, ed. Jan. 16, 2012. http://www.remappingdebate.org/article/coming-boomer-pension-cuts-what-impact-economy.
* Assuming no withdrawals are taken prior to accessing the Lifetime Income Benefit. Any withdrawals will reduce the Lifetime Income Benefit amounts.
Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values.
TargetBenefit 10 Annuity [TBS10 (09/12)], TargetBenefit 15 Annuity [TBS15 (09/12)], TargetPay Income Benefit Rider [TBSIRF (09/12)], TargetPay Plus Income Benefit Rider [TBSIRI (09/12)] or state variations are issued by Aviva Life and Annuity Company, West Des Moines, IA.
Product features, limitations and availability vary by state; see the Certificate of Disclosure for details.
Annuities are not FDIC insured. Guarantees provided by annuities are subject to the financial strength of the issuing insurance company.