Nationwide Financial Services, Inc. announced enhancements to its lifetime income rider.
The enhancements, which will be available on Sept. 4, offer consumers more guaranteed retirement income from the Columbus, Ohio, company's variable annuities.
The enhancements include a guaranteed roll-up of 7%, up from 5%. This means that the income benefit base, the amount on which the lifetime income payments are calculated, is guaranteed to increase by 7% simple interest annually for 10 years or until the first withdrawal.
The enhanacements also include a reset option that now automatically adjusts the income benefit base at each rider anniversary if the contract value is higher than the existing benefit base. If the market is flat or down, the new roll-up translates to a guaranteed 70% increase to the income benefit base if the consumer waits 10 years to take a withdrawal.
Nationwide Financial announced the enhancements on Tuesday. Its variable annuities are issued by Nationwide Life Insurance Co.
