Nassau Aims Annuity at Social Security Planning Market
What You Need to Know
The single-premium, non-variable indexed product addresses clients’ benefits timelines.
The contract owner with the financial services company can boost early income for up to eight years.
American Life offers an annuity that locks in guaranteed income with an available index-based bonus.
Nassau Financial Group wants to give advisors a tool they can use to help clients fine-tune the start date for Social Security retirement benefits.
The Hartford, Connecticut-based company introduced the Nassau Income Accelerator, an annuity with Social Security-compatible lifetime income options.
Under current rules, clients may be able to increase their annual Social Security benefits by as much as 24% if they wait until age 70 to claim benefits, rather than starting at age 62, the company says.
Buyers of the new Nassau annuity can arrange for it to pay higher benefits early on, for up to eight years, to reduce the need to begin collecting Social Security before age 70.
What it means: Clients are hungry for information about Social Security and ideas about how to plan for it. Life and annuity issuers have noticed.
The Nassau product: Nassau is writing its new annuity through its Nassau Life and Annuity Company subsidiary.
The product is a single-premium, non-variable indexed annuity.
Nassau has $23 billion in assets under management.
Other strategy moves: Stock prices, interest rates and other economic drivers have bobbled in all directions in recent months.
Strategists have responded with products aimed at clients who are looking at all different levels of gloom and hope.
American Life & Security Corp., a subsidiary of Lincoln, Nebraska-based Midwest Holding, introduced Fusion, a multi-year guaranteed index annuity that can meet the needs of clients who still want to lock in guaranteed returns.
