UBS Global Asset Management and Genworth Financial Inc. plan to introduce a guaranteed income for life option for 401(k) participants.
The feature will be available with UBS' target retirement funds and other investment products by the end of the first quarter, pending regulatory approval, the companies said Tuesday.
It will allow 401(k) participants to withdraw 5% of their highest annual locked-in portfolio value for life, even if the withdrawals ultimately exceed the value of their portfolios. Genworth Life and Annuity Insurance Co. will be the issuer of the guarantee.
Genworth Financial is based in Hartford, Conn., and has operations in more than 25 countries.
UBS Global Asset Management, which is based in Chicago, had $801 billion of assets under management as of Sept. 30. It has 3,500 employees in 25 countries, with offices in New York, Hartford, Frankfurt, Grand Cayman, Hong Kong, London, Luxembourg, Rio de Janeiro, Sydney, Tokyo, Toronto, and Zurich.
