Allianz Life announced Tuesday the launch of a lifetime income rider for fixed index annuities that will provide income-protected payments. The Simple Income III rider will use the Consumer Price Index to determine increases in payments, and will protect payments through the first 20 years of income.
The rider will also offer level and indexed payment options.
The Bureau of Labor Statistics reported Sept. 17 that the Consumer Price Index increased 0.3% in August, an increase of 1.1% for that 12-month period.
“Inflation is already a major concern for people at or near retirement, so financial professionals need better options to help clients address that issue,” Eric Thomes, senior vice president of sales for Allianz Life, said in a press release.
Allianz cites a 2009 survey by the Society of Actuaries which found inflation to be the top retirement concern among pre-retirees.