Voya Financial announced Feb. 10 that its Retirement Solutions business has added a new retirement income investment option to its record keeping platform.
Designed by AllianceBernstein (AB), the Lifetime Income Strategy is available for 401(k) plan participants of large employers. The age-based, asset allocation program is designed to help participants convert their savings over time into a stream of guaranteed income that lasts throughout retirement.
The new option provides participants with a personalized asset allocation strategy that helps build critical retirement savings, followed by an income benefit for life, guaranteed by multiple insurers. According to Voya’s product announcement, the program leverages the expertise of AB's multi-insurer platform, while incorporating both guaranteed and non-guaranteed components into one consolidated program. Investors benefit by having a single, integrated solution with several different insurance companies splitting the responsibility under the contracts, diversifying risk and helps participants receive competitive payouts.
Other important benefits and features of the Lifetime Income Strategy include:
- Fiduciary Protection: AB assumes the role of fiduciary, including taking on full responsibility for the selection of the multiple insurers that provide the guaranteed income component. This eliminates the fiduciary responsibility for plan sponsors to select and monitor the insurers.
- Investment Flexibility: Investments for the non-guaranteed component are customizable. Plan sponsors can choose to utilize their current investment option lineup, and the program is designed for use as a qualified default investment alternative (QDIA).
- Upside Potential, Downside Protection: The program allows for income growth potential from market gains as well as income protection against market losses through a guaranteed lifetime withdrawal benefit (GLWB), which provides participants with a stream of guaranteed retirement income for life.
- Participant Unique Glide Path: Investors can select the age they plan to retire and adjust over time their desired level of income protection, if necessary, based on their unique situation. These features help improve participant engagement while creating an individualized glide path designed to best meet investors' needs.
- Individual Control: Participants have the ability to withdraw their assets or transfer to other investment options at their convenience — giving them full control while in the program including in retirement.
For more information on Voya’s value adds for advisors, visit their NAPA Partner Corner page.
