Lincoln Financial Group’s retirement plan services business has launched the Lincoln Secured Retirement Income investment option, a guaranteed withdrawal benefit (GWB) designed to provide guaranteed income for life.
Lincoln says the product is designed to protect retirement plan participants’ savings from market declines while also allowing for gains from rising markets. The investment option is available as a QDIA, taking the form of a custom target-date solution within Lincoln’s LifeSpan administrative platform or as a standalone investment.
Participant contributions are invested in Lincoln’s LVIP Managed Risk Profile Moderate Fund, a balanced fund that employs a risk management strategy and seeks to lower the volatility of returns and provide capital protection in down markets.
Through the guarantee portion, the Secured Retirement Income option determines a participant’s guaranteed lifetime retirement income by the participant’s “income base.” The income base is calculated and reset annually and equals the higher of the market value of the account or the previous year’s income base, plus contributions and less withdrawals. At any time, participants have access to the market value and can withdraw, transfer, take a loan or execute other transactions from the balanced fund as allowed by the plan.
