Principal Financial Group in Des Moines has announced two tools designed to give retirees more flexibility and control over how they spend their life's savings.
Principal Income Protector and Principal Income Manager secure a paycheck for life while letting retirees decide how and when they dip into retirement nest eggs, the company said on Thursday.
Income Manager works like a retiree checking account for income annuities. It helps retirees manage tax liabilities by deferring their monthly annuity income payments directly into a money market IRA if they don't need the cash. The retiree can withdraw the money as needed by writing checks or, eventually, by using debit cards. The retiree only pays taxes on money that is withdrawn, and the program lets savings continue growing, the company said.
Income Protector lets retirees partially transfer from a deferred annuity contract to a series of income annuities over time. The money remaining in the deferred annuity continues to grow tax-deferred.
