With the number of people in the United States aged 65 years and
older on the rise, Principal Financial Group® has launched its
second Registered Index-Linked Annuity (RILA), Principal® Strategic
Income, that helps individuals nearing or in retirement create
guaranteed lifetime income while still building and protecting
their retirement savings.
“A convergence of factors has accelerated the demand for
annuities and heightened the need for guaranteed income in
retirement,” said Sri Reddy, senior vice president for Retirement
and Income Solutions at Principal. “Recent macroeconomic trends –
including higher interest rates, volatile equity markets, and
inflation – coupled with a growing aging population with longer
life expectancies mean Americans need more ways to save and invest
to meet their needs in retirement. But the record wave of people
turning 65 years of age every day has created a market for annuity
solutions that is significantly greater than we have seen in the
past, magnifying how important they can be to investors during
their peak planning stages.”
Principal® Strategic Income, which is available to investors
through financial professionals, builds on the first RILA Principal
debuted in 2023 when annuity sales hit all-time highs1. The new
RILA uses a guaranteed lifetime withdrawal benefit, the Secure
Income Protector rider, to ensure individuals have a secure source
of income in retirement regardless of future investment market
performance or how long they live. For a lower cost than some
traditional variable annuities with income riders, the Secure
Income Protector rider offers two income options:
1) A level amount every year that never
decreases. 2) A tiered amount that provides higher income initially
and then decreases if the account value reaches zero.
Unlike many variable annuities with income riders that lock in a
decision at contract issuance, Principal® Strategic Income allows
individuals to change their income option one time before they
start taking income payments, providing flexibility should income
needs change before their first withdrawal.
The increase in demand for annuities can be correlated to the
aging U.S. population with more than 73 million Americans reaching
age 65 or older by 2030 – a 30.3% increase over 20202. This age
demographic has reached a financial milestone at which their
priority has shifted from saving for retirement to converting
assets into lifetime income. In fact, a survey Principal conducted
in March found creating income in retirement was the top
personalized financial advice service employees would use through
their employer’s retirement savings plan.3
Principal® Strategic Income may not be available in all
states or with all broker-dealers.
Principal® Strategic Income does not directly participate in
any stock, equity investments, or index. It is not possible to
invest directly in an index.
Investing involves risk, including the possible loss of
principal.
Before investing in registered index-linked annuities,
investors should carefully consider the investment objectives,
risks, charges, and expenses of the contract and underlying
investment options. This and other information is contained in the
free prospectus, which can be obtained from your local
representative or online at principal.com. Please read the
prospectus and, if available, the summary prospectus carefully
before investing.
Index-linked deferred annuity contracts are complex insurance
and investment vehicles. This contract is a security and there is a
risk of substantial loss of principal and earnings. The risk of
loss may be greater when early withdrawals are taken due to any
charges and adjustments applied to such withdrawals. These charges
and adjustments may result in loss even when the value of a segment
option has increased. Clients should consult with a financial
professional about the appropriateness of this product based on
their financial situation and objectives.
Contract rider descriptions are not intended to cover all
restrictions, conditions or limitations. Refer to rider for full
details.
Guarantees are based on the claims-paying ability of Principal
Life Insurance Company®.
Excess withdrawals could lower your income payment.
About Principal Financial Group®
Principal Financial Group® (Nasdaq: PFG) is a global financial
company with nearly 20,000 employees4 passionate about improving
the wealth and well-being of people and businesses. In business for
145 years, we’re helping approximately 62 million customers5 plan,
protect, invest, and retire, while working to support the
communities where we do business, and build a diverse, inclusive
workforce. Principal® is proud to be recognized as one of
the 2024 World’s Most Ethical Companies® by Ethisphere6, a member
of the Bloomberg Gender Equality Index, and a “Best Place to Work
in Money Management7.” Learn more about Principal and our
commitment to building a better future at principal.com.
Annuities products and services are offered through Principal
Life Insurance Company®. Securities offered through Principal
Securities, Inc., member SIPC and/or independent broker/dealers.
Referenced companies are members of the Principal Financial Group®,
Des Moines, IA 50392.
Any other entities mentioned within are not affiliated with any
member companies of Principal Financial Group.
© 2024 Principal Financial Services, Inc. Principal®, Principal
Financial Group®, and Principal and the logomark design are
registered trademarks of Principal Financial Services, Inc., a
Principal Financial Group company, in the United States and are
trademarks and services marks of Principal Financial Services,
Inc., in various countries around the world.
1 LIMRA 2023 Individual Annuity Sales Survey 2 U.S. Census
Bureau 3 Principal Insights Community Survey, March 2024 4 As of
March 31, 2024 5 As of March 31, 2024 6 Ethisphere, 2024 7 Pensions
& Investments, 2023
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240710072839/en/
Phillip Nicolino, 515-362-0239,
nicolino.phillip@principal.com
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