Aviva USA launched a new fixed indexed annuity series today that brings simplicity and flexibility to the annuity marketplace.
The TargetBenefit Annuities feature several innovative options to help consumers demystify retirement planning. The product offers a personalized approach to help someone preparing for retirement target their retirement goals, growth potential and income needs.
“TargetBenefit is designed to restore a level of certainty to retirement planning,” said Lance Sparks, senior vice president for annuity IMO sales and distribution for Aviva USA. “With TargetBenefit, consumers have more options to meet their needs and help them adapt to current market conditions. Customers are looking for wealth accumulation, guaranteed lifetime income and a product that is easy to understand. This flexible annuity can meet all those needs.”
Sparks said TargetBenefit does that with features that include:
“One of the biggest threats to a person’s retirement savings is inflation,” Sparks said. “Another attractive feature of TargetBenefit is, at the time the customer starts to take income, he or she can elect a level income option, or an inflation-adjusted income option. The inflation-adjusted option will typically result in a lower payout initially, but it increases annually based on changes in the Consumer Price Index. People concerned about losing purchasing power in retirement can choose this option, which enables their annuity income to keep pace with inflation.”
Just as inflation is unpredictable, so are the income targets needed in retirement. If a customer finds he or she doesn’t need the money once they begin taking their guaranteed lifetime income, the money that could have been withdrawn remains and continues to earn interest. The untapped guaranteed income can be accessed as a lump sum in the future. This new concept for the annuity industry is like having a tax-deferred piggybank that can be accessed when needed to cover unexpected retirement expenses.
Sparks said although interest rates are at near-record lows, customers want products that provide guaranteed income streams as well as accumulation. Sparks said that demand resulted in creation of the innovative TargetBenefit product.
“TargetBenefit Annuities offer clients the opportunity to plan for and then adapt to changes in their retirement income needs,” Sparks said. “We believe the unique features we’ve built into the product are going to transform the annuity marketplace by removing complexity and making annuities more attractive and mainstream.
“By developing products like the TargetBenefit Annuities, Aviva USA is demonstrating our commitment to the annuity marketplace. We also are committed to finding ways to meet the needs of customers who are looking for clarity, predictability and customizable solutions as they plan for retirement.”
More information about Aviva’s TargetBenefit Annuities can be found on avivausa.com.
About Aviva USA
Aviva USA is a sales leader of indexed life insurance and indexed annuities. Headquartered in West Des Moines, Iowa, Aviva USA also has offices in Topeka, Kan., and Melville, N.Y. Aviva USA has approximately 930,000 customers and employs 1,800 people across the country. Aviva USA is part of Aviva plc, the world’s sixth-largest insurance group, and can trace its presence in the U.S. back to 1896.