Income America™ 5For Life provides guaranteed income—for life. Here’s an example of how it works:
Meet Sophia. As she nears retirement, she’s concerned about how a market downturn could impact her hard-earned nest egg. To help protect her income and secure a predictable stream of income in retirement, she selects Income America 5ForLife from her plan’s investment lineup.
When Sophia is 55, she moves $60,000 from other funds in her retirement account into 5ForLife. This establishes her income base,1 which is used to calculate her guaranteed income when she retires. Her future contributions will add to the income base.
Even if there’s a market downturn, Sophia’s income base is protected. And she still benefits from the market’s upside, because every year on her birthday her income base can re-set, stepping up to lock in any gains.
At age 65, her contributions total $143,000, but thanks to market gains and annual step-up opportunities, her income base locks in at $200,000. This translates into lifetime income payments of $10,000/year, or 5% of her income base, for life, even if she outlives her balance or there’s a severe market downturn.
1Your income base is never available for withdrawal and is only used for calculating your income. It may be adjusted based on contributions to and/or withdrawals from the investment. While you can withdraw the market value of your investment option at any time without any fees or penalties, doing so may cause you to lose some or all of the income guarantee. If plan provisions permit, you may elect to receive income at any time after age 65. If you withdraw more than the guaranteed income in any year, your income base and future guaranteed income will decrease. However, in most scenarios, if your required minimum distribution exceeds your guaranteed income amount, your income base will not be affected and your payments will not be lowered. Please contact your plan representative for more details.
