Pointing to greater interest and traction for its suite of in-plan guarantee solutions, Nationwide recently announced that it has made Income America 5ForLife available for managed account programs on its platform.
According to the announcement, Nationwide will provide two ways for plan sponsors and participants to access Income America 5ForLife — a series of bank-maintained collective investment funds for which Wilmington Trust, N.A. is trustee.
Income America will be available this month as an investment option to the managed account programs on the Nationwide platform, starting with Nationwide ProAccount. “This provides a great new solution for the ‘do-it-for-me’ investor that wants advice on how to invest their retirement plan assets, but needs help in determining an appropriate allocation to a guaranteed lifetime income investment option,” the firm explains.
In addition, the Income America 5ForLife Target Date Fund Series that launched in 2021 continues to be available. Participants can contribute to or transfer assets into one of these funds, providing an option for plans and participants looking for a simplified “help-me-do-it” solution built into a TDF.
“When the SECURE Act of 2019 opened the door for the expansion of in-plan guarantee solutions, we were among the first to market with a suite of products to help participants protect their assets and convert their savings to income in retirement,” notes Eric Stevenson, president of Nationwide Retirement Solutions. “Since then, we have been helping plan sponsors, financial professionals and consultants understand how protected retirement solutions like in-plan guarantees may be a fit for participants’ needs.”
Nationwide has been in the in-plan guarantee market as an insurer for over 11 years. In 2021, the company began introducing a suite of income solutions available through the company as a recordkeeper. Today, the company manages $1.4 billion in-plan guarantee assets for more than 5,500 plans.
“The recent economic environment has driven greater interest in solutions that offer protection in retirement—whether that’s providing downside protection or helping ensure participants can turn their savings into a stream of income they won’t outlive,” added Stevenson.
Several industry stakeholders—including American Century Investments, Lincoln Financial Group, Nationwide, SS&C Technologies, Wilmington Trust, N.A., and Wilshire—came together to create Income America 5ForLife.