Nationwide Advisory Solutions has introduced an annuity contract aimed at RIAs and fee-based advisors with clients who already have an immediate need for regular streams of income.
The Louisville, Kentucky-based Nationwide unit has added the Nationwide Advisory Income contract.
The product is a single-premium annuity contract, or SPIA.
Craig Hawley, head of Nationwide Advisory Solutions, said in a statement about the new contract that 10,000 baby boomers are retiring each day.
“Our new SPIA helps expand insurance opportunities for RIAs and fee-based advisors, and helps them solve the retirement income challenge for their clients,” Hawley said.
What is a SPIA?
A SPIA is an arrangement set up in such a way that the purchaser pays a large sum of cash to an insurer. The insurer then converts the cash into a stream of regular payments, either for a specified period or for an individual’s lifetime.
For a retiree, buying a SPIA is a way to turn a large pot of retirement savings into the equivalent of a regular paycheck.