UBS Global Asset Management and Genworth Financial Inc. have announced a deal to introduce a guaranteed income for life option for 401(k) participants that will be made available with UBS’s recently announced target retirement funds and other investment options. The income for life benefit should be available by the end of the first quarter and results from a collaborative effort between UBS Global Asset Management and Genworth Financial of Richmond, Va.
“This guaranteed income for life option is the final piece of the puzzle–we are now able to help plan sponsors provide employees assurance that they will not outlive the income they receive through retirement,” says Drew Carrington, head of the defined contribution and retirement solutions at UBS, in a January 22 statement.
The benefit has been designed to allay investor worries that Social Security and defined benefit pension plans may not be sufficient sources of future income. It aims to be easy to understand, low cost and portable and allows remaining assets to be passed on to beneficiaries.