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October 07, 2014 at 08:55 AM
Hoping to capitalize on Americans’ need for guaranteed retirement income, Northwestern Mutual is making a bigger push into the longevity annuity market.
It will do so by offering products currently available through qualified retirement plans to the retail market.
Northwestern Mutual rolled out two new guaranteed income annuity products in 2012, its Select Portfolio Immediate Income annuity and the Select Portfolio Deferred annuity. Both initially were marketed to target rollover money from 401(k) plans and IRAs.
Now, Northwestern wants to capture more of the annuity market by targeting investors’ personal savings, or significant lump-sums of money resulting from an inheritance, the sale of a home or the sale of a business.
Northwestern Mutual’s research shows that a significant number of Americans fear “longevity risk” into retirement. About a quarter of those surveyed aged 25 or older don’t feel they’ll be financially capable of living to 75; one-third don’t feel they’ll be prepared to live to 85; and 40 percent don’t feel they’ll be prepared to live to 95.
The company said its Portfolio Income Annuity products help protect against longevity risk, market risk, and inflation risk.
