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Retirement Income Challenge

Much of America is facing retirement not knowing if they will have enough income to last throughout their retirement. When Failure is Not An Option, you have a superior solution here.

 

Visit the tabs below to:

  • Generate a customized sample of what your client's income solution will look like
  • Show them where they will find the most success using the modeling tool.
  • The white paper research will explain the process and results behind the study.
  • The product that offers up a solution to the America's Retirement Income Challenge and, 
  • Additional resources, such as videos

 
*Failure is defined as any scenario where the income need for a given year cannot be met and there is not a least $1 remaining in the mutual fund portion at death of the second spouse.

INCOME CALCULATOR

The Income Calculator was created to show you, and your clients, exactly how the Security Benefit Foundations Fixed Indexed Annuity provides a better retirement income.

 

Also, check out our new Foundations Income Calculator iPad App and find out how much your retirement savings could generate with the Security Benefit Foundations Annuity.


 

How much Income can you Generate?

 

Calculate the Lifetime Income of your client today!

 

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income calculator

MODELING TOOL

Take the Retirement Income Challenge

 

The Retirement Income Challenge Income Modeling Tool enables you to model various popular retirement income portfolio strategies. Using data from a study by Security Benefit and one of the world's largest independent actuarial and consulting firms, the modeler demonstrates the optimal allocation between three modern strategies.

 

You can also, download our Retirement Income Challenge Modeling Tool iPad App.

 

The tool allows you to model the "efficient frontier" of the following income portfolio strategies:

  • Mutual fund systematic withdrawal (base case),
  • Variable Annuity (VA) combined with mutual fund systematic withdrawals, and
  • Fixed Indexed Annuity (FIA) combined with mutual fund systematic withdrawals.

 

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modeler

RESEARCH STUDIES

Planning With Certainty: A New Strategy for Retirement Income

 

Security Benefit is committed to helping advisors find better solutions for their pre and post-retirement clients. We have been exploring a new approach combining reliable mutual fund spend down strategies with next-generation insurance products and innovative guarantees to significantly increase the potential for achieving retirement income success. With that goal in mind, we commissioned one of the world's largest independent actuarial and consulting firms, to determine the optimal allocation between three modern retirement income strategies. The studies below illustrate the findings of the study for three different client scenarios.

 

Joint Life 65


A Joint Life Study Points to a Better Product Allocation for Decumulation Portfolios
Complete the request form to download this research article. (PDF)

 

 

Single Life 65

 

A 65-Year Old Single Life Male Study Points to a Better Product Allocation for Decumulation Portfolios
Complete the request form to download this research article. (PDF)

 

 

Single Life 55

A 55-Year Old Single Life Male Study Points to a Better Product Allocation for Decumulation Portfolios
Complete the request form to download this research article. (PDF)

 

Note: We respect electronic privacy and will not give out your information under any circumstances.

PRODUCT SOLUTIONS

A Next Generation Fixed Indexed Annuity

 

Security Benefit has created a product that could be very well be one of the most competitive financial tools available. The Security Benefit Foundations Annuity was designed in a manner that mirrors the best the financial product world has to offer.

 

Standout features:

 

  • The product has a higher guaranteed payout than several other well recognized FIAs and VAs; because of this, in some instances, it can generate superior income.

 

  • There are 5 and 7 year surrender charge options from which to choose.

 

  • A 1% Bonus on both the 5 year and the 7 year.

 

  • The 5 year features a Guaranteed Return of Premium (by company practice).

 

  • The 7 year features the Guaranteed Lifetime Withdrawal Benefit (GLWB) rider.

 

  • The Lifetime Annual Income factor is up to 7%.

 

  • A simple annual benefit base roll-up on the GLWB Rider's Benefit Base of 8.5%.

 

  • Your client gets a solid value on the rider. They can guarantee a lifetime income stream for only 90 basis points.*

 

  • Finally, there is no downside market risk with FIAs, and in today's volatile market this can be a reassuring aspect.

 

Find out if this product could be a good fit for your clients. Start with the Retirement Income Challenge Modeling Tool; learn more about the efficient frontier and how the VA, Mutual Fund, FIA mix can be optimized for superior results. This is truly a new and better approach to solving today's Retirement Income Challenge.

 

Learn more about our new fixed indexed annuity product.

 

* The 8.5% roll-up on the GLWB's Benefit Base is not interest credited to the Foundations Annuity's account value.

 


 

The Security Benefit Foundations Annuity (Form 5800 (11-10) and ICC 10 5800 (11-10)), a fixed indexed flexible premium deferred annuity contract, and the Guaranteed Lifetime Withdrawal Benefit Rider (Form 5821 (5-11) and ICC11 5821 (5-11)), an optional rider available for purchase with the Security Benefit Foundations Annuity and for which a premium is charged, are issued by Security Benefit Life Insurance Company. Product features, limitations and availability may vary by state.

 

Guarantees provided by annuities are subject to the financial strength of the issuing insurance company and: Annuities are not FDIC insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan, or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity.

 

RESOURCES

Articles

 

Consumer-Approved Videos

 


Articles

 

Below are articles relevant to retirement income that you may find helpful for your practice or to share with your clients.

 

Indexed annuities gain popularity while rates remain low (InvestmentNews registration required)

InvestmentNews - February 23, 2014

Indexed annuities are enjoying a wave of popularity among financial advisers grappling with low interest rates. Reps at broker-dealers and wirehouses are viewing these products as a viable fixed-income alternative and a possible provider of lifetime-income benefits.

 

Solvency is Important when Buying Annuities

Forbes - January 10, 2014

When trying to find the right match of benefits, expenses, and interest options within an annuity plan…you may be missing one important factor…the financial strength of the annuity company and how likely you'll be to get your money back should the insurance company fail. In other words, how solvent is that company?
 
Simply, the higher the solvency ratio, the the more assets available to make good on the promise.
 
For example, while Security Benefit has a lower rating by A.M. Best, the company is actually in a strong position to make good on their promise to their annuity owners with a solvency ratio of 105.29.

 

Indexed Annuities Increase Etirement Success 97.5%

Insurance News Net Magazine - January 2014

Today, clients are concerned with "dealing with health care expenses" and "not outliving my income." According to Douglas Wolff, president of Security Benefit Life, as an industry, we have a great opportunity to respond to this attitudinal shift by developing a new and improved game plan for helping clients generate retirement income.
 
New approaches combining traditional vehicles with innovative income guarantees can reduce the risk of failure and improve the odds of creating a successful income-generating strategy. More specifically, retirement income plans using mutual fund systematic drawdowns and an indexed annuity (IA) with guaranteed lifetime withdrawal benefits (GLWB) may be a great addition to an advisor's playbook.

 

Annuities Find Favor With More Advisors

Financial Advisor - September 4, 2013

Baby Boomers who witnessed their retirement nest eggs implode are still viewing annuities and the income guarantees they provide in a more favorable light. Annuities are filling some gaps in retirement planning, playing a more pension-like role today, providing needed supplemental income for Social Security and dwindling pension programs.

 

Combatting Low Interest Rates in Retirement

FOX Business - February 26, 2013

A must read article for clients, Combatting Low Interest Rates in Retirement advises future retirees to plan ahead for the remainder of their lifetimes by staying ahead of inflation, preserving their assets and maintaining an income consistent with their lifestyles.

 

Fixed Indexed Annuities Improve Retirement Income, Says Survey

Financial Advisor Magazine - January 10, 2013

According to a survey released by Security Benefit Corporation, fixed indexed annuities used with traditional retirement portfolio strategies improve the chances of creating sustainable income throughout retirement. Entitled Planning With Certainty: A New Strategy For Retirement Income, the paper described the results of research the firm conducted with a leading independent actuarial consulting firm on various joint and single life retirement scenarios.

 

New Security Benefit Product Ushers in Future of Fixed Indexed Annuities

Security Benefit News Release - January 9, 2013

Security Benefit Corporation, a leading provider of retirement savings and income vehicles for America's pre- and post-retirees, today introduced Foundations Annuity, a next-generation fixed indexed annuity (FIA) that can help address Americans' need for sustainable income during retirement with a unique combination of features.

 

Research Reports From Security Benefit Point To A Different Approach For Retirees Seeking Sustainable Income

Security Benefit News Release - January 7, 2013

Security Benefit Corporation has released a series of research papers confirming that fixed indexed annuities (FIAs) used in combination with traditional retirement portfolio strategies significantly improve the chances of creating sustainable income throughout retirement.

 

You Bought an Annuity. Now What? (The Wall Street Journal registration required)
The Wall Street Journal - November 30, 2012

Outliving your assets is a true concern for many retirees, and annuities with a living benefit can serve to balance risk within an overall retirement income portfolio. This article in the Wall Street Journal argues that putting part of a retirement portfolio in annuities with a living benefit can potentially open the door to taking on more market risk, which in turn offers the possibility for more portfolio growth.

 

Annuities Can Fix U.S.'s Retirement Challenge (Ignites registration required)
Ignites - November 8, 2012

Over the past decade, fixed indexed annuities have developed into more consumer-friendly products that include better riders for income, shorter surrender charges, enhanced death benefits and innovative crediting methods that offer retail investors a way to invest for future income without the worry of principal loss. There is strong investor demand for products that offer principal protection with the ability to have returns tied to a stock market index.

 

Don't Have Enough? Five Ways to Boost a Retirement Shortfall
RetirementAdvice.com - October 17, 2012

How much do you need to save for retirement? Fortunately, there are steps you can take to help make your retirement future more secure. Check out these tips to boost any retirement shortfalls you may have.

 

Top 5 Annuity Trends to Watch in 2012 and 2013
AdvisorOne - October 2, 2012

Ernst & Young identifies five trends that they believe will significantly impact the annuity and retirement landscape over the next 12 to 18 months. One trend is the fixed indexed annuities market as companies continue to search for more efficient uses of capital, with some companies modifying the features and/or limitations of their GLWBs to eliminate large reserve strains similar to the variable annuities market.

 

Indexed Annuities Grab the Spotlight
OnWallStreet.com - October 1, 2012

While the variable annuity market has declined, indexed annuities, a sub-category of fixed annuities, have taken off with an increase of 10%. They went from $15.2 billion in the first half of 2011 to $16.7 billion in the first half of 2012.

A fixed indexed annuity doesn't offer as high an income stream as a variable annuity, but it does protect the investor's principal and guarantees a respectable yield over the five to eight year life of the product-one that with many indexed annuities can even increase if the market rises.

 

Making IRAs Last Two Lifetimes

LifeHealth Pro - August 21, 2012

Planning for retirement for one a single individual can be difficult, planning for a spouse can be even more tasking. A poorly planned structure of retirement assets could result in a reduction in retirement income possibly later in life when only one of the spouses is still alive. To help address this concern, some insurance companies have created annuity products that provide a spousal protection - offering certain protective riders, for an additional fee, that can address the market, inflation, longevity and timing risks inherent in all IRAs, as well as provide guaranteed income over the lives of both spouses.

 

Editorial: Retirement income planning's more complex now (InvestmentNews registration required)
InvestmentNews - May 13, 2012

Eroding social security benefits, coupled with a volatile market experience and a struggling economy in recent years, have investors and advisors alike uncertain when it comes to retirement planning. Solutions have never been more necessary with future budgeting for taxes and healthcare. That is consensus by attendees of a recent InvestmentNews Retirement Income Summit.

 

It's Not Easy Making Do With a Measly Million
The New York Times - May 9, 2012

A $1 million retirement fund doesn't afford the same luxuries today as it did in the past. Retirees are concerned about running out of money before the end of their lifetime due to the current uncertainty in the economic environment and potential costs in the future. But how do you enjoy retirement without being terrified of overspending? One approach to planning ahead is the purchase of an annuity, which gives the annuity seller a specified amount in return for a predetermined monthly payment for life.

 

Why Annuities are the Answer (But Such a Tough Sell)
Time - May 4, 2012

Filling the retirement gap left by the waning of traditional pension plans and limited Social Security benefits, leaves most retirees without a source of guaranteed lifetime income. A recent retirement survey by BlackRock found that retirees with a guaranteed income stream tend be most confident about their finances. Beyond confidence is the need for planning for an uncertain future and the ability to make sound financial decisions later in life.

 

4% withdrawal rule called into question (InvestmentNews registration required)
InvestmentNews - January 22, 2012

Is a 4% withdrawal rate enough to live on after retirement? With an unstable economic environment and market volatility, many financial advisors are re-evaluating this standard formula for clients tapping into their nest eggs.

 

Retirees Should Have More Annuities, Fewer Stocks
SmartMoney - July 14, 2011

Research suggests opting for investing less in stocks and purchasing more annuities can help avoid the risk of outliving your assets.

 


Consumer-Approved Videos

 

What is an FIA?


What is an FIA?

This video provides educational information on how a Fixed Index Annuity can help your clients generate and protect their retirement income.

 

 

The Power of Tax Deferral

The Power of Tax Deferral

This video outlines what tax deferral is and how it can be advantageous to your clients.

 



Security Benefit does not provide investment, legal or tax advice and individuals should consult with their own investment, legal and tax advisors.

The content in the linked articles is solely the responsibility of the authors, and Security Benefit is not responsible for the content produced.

Security Benefit does not necessarily agree with or endorse the opinions and/or advice provided in the linked articles. Article links are provided soley as a courtesy.

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