Study Says Only 30% Did Enough Planning for How to Spend Time in Retirement

The number of United States citizens aged 65 and older will more than double in the next 40 years, and more adults than ever are planning for their post-working years. While traditional retirement plans require ample conversations about savings for the future, less of the retirement conversation refers to how retirees intend to spend their days during their non-working years. New research from Lincoln Financial Group shows that 77% of those surveyed in their 50s and 60s see retirement as a phase of life during which they will finally be able to pursue the passions and pastimes they did not have time for during their working years. Despite the desire to plan for exactly what they want to do in retirement, only 11% of pre-retirees say they have done a lot of planning for pastimes in retirement.

Many people approaching retirement work with a financial professional to ensure accurate planning, saving, and investing.  But they are not spending the time needed to ensure a lifetime of enjoying their passions. To create a lifestyle, complete with time and funds to explore these passions and pastimes, and to ensure that loved ones can be part of this plan, more energy must be put toward a plan for these activities.

The research study shows that 87% of persons in their 50s and 60s who work with a financial professional have discussed an investment strategy for retirement, but only 53% have discussed a budget for their favorite activities.

Nearly one half (48%) of persons aged 50+ who work with a financial professional but have not discussed budgeting for their pastimes in retirement have grown more worried about their finances.

“Those approaching retirement today have no plans to slow down, and that’s what so many are overlooking in the planning process,” said John Kennedy, EVP, chief distribution and brand officer at Lincoln Financial. “We want to help the next generation of retirees ensure their pastimes last a lifetime, and this research is a clear indication that there needs to be more of an emphasis on planning to do the things that you love, especially when you finally have time for them after your working years.”

Pre-retirees and retirees want to spend retirement pursuing their passions and pastimes like traveling, volunteering, experiencing the arts, exploring outdoor activities, and socializing.

Pre-retirees in their 50s and early 60s intend to do more planning, with 87% saying they expect to spend additional time planning for retirement. Once in their retirement years, however, only 30% of retirees say they did enough planning for how to spend time during retirement.

“Retirement can be full of opportunities, adventures and new experiences – if the right plans are in place,” said Jimmy Reid, president of workplace solutions at Lincoln Financial. “Our new research shows that while many people are dreaming of what they will enjoy in retirement, they aren’t factoring the expense of their hobbies and activities into their planning. By leveraging the right advice, tools and solutions into financial planning, pre-retirees can ensure they have saved sufficient funds for what they love most in the years ahead.”

Brighthouse Financial Adds Brighthouse SmartGuard Plus℠ to Product Line

Brighthouse Financial, Inc., has announced the launch of Brighthouse SmartGuard Plus, which is a registered index-linked universal life insurance policy that offers clients guaranteed distribution payments that can be used to supplement income in retirement and a guaranteed death benefit. By tracking the performance of certain market indices, Brighthouse SmartGuard Plus also provides clients with the potential for both their distribution payments and policy cash values to grow until distribution payments begin. In addition, Brighthouse SmartGuard Plus offers various buffer options that are designed to provide a level of protection for the policy’s cash value during market downturns.

“Clients remain interested in products that can help them supplement their income in retirement,” said Myles Lambert, chief distribution and marketing officer, Brighthouse Financial. “With Brighthouse SmartGuard Plus, we built a life insurance product that is designed to do that and more.”

A feature of Brighthouse SmartGuard Plus is the ability to take tax-advantaged guaranteed distribution payments1 that can last for life, adding a measure of certainty for clients’ retirement. After the policy has been in force for at least 10 years, the Guaranteed Distribution Rider (GDR), which is automatically included with the policy on the issue date for an additional charge, enables distribution payments to be taken from the policy’s cash value in the form of policy loans.

Other key features of Brighthouse SmartGuard Plus include the following:

·       A guaranteed death benefit, which generally is income tax free, to help clients ensure their family’s financial security.

·       The opportunity to grow the policy’s cash value before beginning distribution payments by choosing one of two crediting strategies: Indexed Accounts or the Fixed Account.

·       The option for clients who select the Indexed Account crediting strategy to choose from a variety of Buffer Rates (10%, 15%, 20% or 100%) to help provide protection against market downturns for the policy’s cash value.

·       The ability, under the GDR, to choose whether to receive distribution payments for life or for a shorter time, which may result in the availability of higher distribution payment amounts.

·       A Lifetime Lapse Prevention Benefit, which guarantees the policy will not lapse while the GDR is in force as long as scheduled required premiums are paid, beginning at the policy start date.

“We are pleased to further strengthen our life insurance product suite with the launch of Brighthouse SmartGuard Plus. Through tax-advantaged guaranteed Distribution Payments and the potential to grow policy values with a level of protection from market loss, Brighthouse SmartGuard Plus can help clients better achieve their retirement goals,” concluded Mr. Lambert.

Brighthouse SmartGuard Plus expands Brighthouse Financial’s life insurance product suite, which includes Brighthouse SmartCare®, a hybrid life insurance and long-term care policy, and Brighthouse SimplySelect®, a term life insurance policy.

Symetra Introduces Protector Indexed Universal Life

Symetra Life Insurance Company has announced the introduction of a new version of its protection-focused indexed universal life insurance (IUL) product — Symetra Protector IUL. The flexible-premium adjustable life insurance policy with a lapse protection benefit and seven index-linked interest options provides guaranteed death benefit protection and added potential for policy cash value growth.

“Symetra’s commitment to the IUL marketplace means offering well-rounded product solutions that provide real customer value. We know that cost-effective, no-lapse protection products remain a top priority for insurance producers and their clients. Symetra Protector IUL offers clients an indexed universal life product with transparent features and a simple story. Its new enhancements offer the opportunity for even stronger death benefit guarantees, more competitive premiums, lower policy charges and attractive cash value accumulation potential,” said Phil Bouvier, senior vice president, individual life sales and marketing.

A news release from Symetra pointed to the following highlights of the new policy:

·       Improved pricing — Symetra Protector IUL is designed to be a market-leader for low premiums and strong death benefit guarantees. Together with high target premiums and lower policy costs, Symetra says Protector IUL is one of the most competitive and well-rounded protection-focused indexed universal life (IUL) products available.

·       Higher index cap and participation rates — Symetra Protector IUL caps and rates have improved. Effective with the November 14, 2022, index sweep date, they will apply to all new business, including new premium, transfers (including dollar-cost averaging) and reallocations of matured segments.

·       New Putnam Dynamic Low Volatility Excess Return Index™ Strategies (Putnam Index Strategies) — Exclusive to Symetra, these new index strategies seek to generate index credits based on the Putnam Dynamic Low Volatility Excess Return Index. This index pursues returns with a focus on managing volatility and avoiding unwanted surprises.

“Symetra has been very deliberate about expanding our life portfolio to help us and our BGA partners reach more customers. Enhanced products like our Protector IUL and Accumulation Ascent IUL, and new offerings like our MultiLife Business Program and award-winning SwiftTerm® digital term life insurance platform are bringing a wider array of solutions to Symetra customers and partners,” said Mr. Bouvier.

Brighthouse Financial Expands Shield Level Annuity Suite

Brighthouse Financial, Inc., has announced the expansion of its flagship Brighthouse Shield® Level Annuities suite with the launch of Brighthouse Shield Level Pay Plus Annuities, which are designed to help strengthen clients’ retirement portfolios by providing a stream of guaranteed lifetime income. Shield Level Pay Plus annuities also offer clients opportunities to participate in market growth combined with a level of protection against market volatility — both key design features of Shield® Level annuities.

“The financial impact of longevity has made guaranteed lifetime income an important consideration for retirees who want to help secure their financial future,” said Myles Lambert, chief distribution and marketing officer, Brighthouse Financial. “By providing a permanent source of retirement income, Shield Level Pay Plus annuities are built to add a measure of certainty to clients’ retirement lifestyles.”

According to the Social Security Administration, about one in three 65-year-olds will live to at least age 90 and about one in seven 65-year-olds will live to at least age 95. Not surprisingly, many investors express strong interest in annuities that provide guaranteed lifetime income. A recent study from the Alliance for Lifetime Income, in partnership with CANNEX, found a significant majority (85%) of investors are interested in owning − or already own − an annuity that guarantees lifetime income.

Shield Level Pay Plus annuities are index-linked annuities, which are a kind of annuity that enables clients to participate in growth opportunities up to a certain percentage by tracking the performance of one or more market indices, rather than by investing directly in the markets, while providing a level of protection in down markets.

Other key features of Shield Level Pay Plus annuities include the following:

Two versions of an income rider:  Clients can choose between two versions of a built-in income rider, depending on their specific risk tolerance and income needs. Both versions of the rider use a Benefit Base, which is multiplied by the applicable withdrawal rate to determine the stream of lifetime income. The choice of two versions of the rider means clients can decide how they want their Benefit Base, which initially equals the purchase payment, to build value. The Benefit Base cannot decrease because of market losses, but it can grow.  For clients who want to participate in the growth opportunities equities can provide, the Market Growth version of the income rider offers the potential to build benefit amounts faster than some other guaranteed income products. For clients who prefer the comfort and reliability of guaranteed growth of the Benefit Base, no matter the market conditions, the Market Growth with Rollup version of the income rider can be a valuable portfolio addition.

Lower fee:  The features of a Shield Level Pay Plus annuity are provided in a way that will not heavily impact a client’s portfolio because of higher fees and costs. With no base contract fees, clients pay an annual charge of 1.5%, which is a lower fee than some traditional variable annuities that have an income rider – and can help clients keep more of their money working for them.

Flexibility to suit individual needs and goals:  Shield Level Pay Plus annuities continue Brighthouse Financial’s history of building flexibility into each of its products to suit clients’ individual needs and goals. In addition to the product’s flexible features mentioned above, Shield Level Pay Plus annuities are designed to provide married couples of any gender with advantages that not all similar products may offer. These advantages include the ability for clients to choose which income option they prefer when they are ready to start taking income, rather than having to choose single or joint life income at contract issue.

Shield Level Pay Plus annuities enhance Brighthouse Financial’s portfolio of products that are designed to help people protect what they’ve earned and ensure it lasts. In addition, Shield Level Pay Plus annuities reflect Brighthouse Financial’s ongoing focus to help meet the evolving needs of clients as the company continues to deliver on its mission to help people achieve financial security.

“Financial security, especially in retirement, is top of mind for many people and their families today. Brighthouse Financial specifically designed Shield Level Pay Plus annuities to help meet the need for reliable retirement income, and we are very pleased to add this new product to our suite of Shield Level annuities,” concluded Mr. Lambert.

Pacific Life Introduces New Investment Options

Recognizing that many investors are looking for both growth and protection, Pacific Life recently launched the Invesco® V.I. Defined Outcome Funds, available with certain Pacific Life variable annuities. The company designed these new funds to give investors the benefits of a registered index-linked annuity (RILA) but with more flexibility, control, and transparency.

The Invesco® V.I. Defined Outcome Funds offer growth potential linked to a market index, up to a cap, as well as downside protection through a buffer that protects against the first 10% of loss over a one-year outcome period. These features are available to clients without the need for an optional benefit for an additional cost.

By offering the funds through a variable annuity, clients have the flexibility to combine this strategy with other investment options to create a custom portfolio that meets their unique needs. Clients also have the flexibility to move in and out of the Invesco® V.I. Defined Outcome Funds should those needs change.

“We’ve seen industry growth in RILAs, low-cost mutual funds, and outcome-focused exchange-traded funds (ETFs),” said Kevin Kennedy, senior vice president of sales and chief marketing officer for Pacific Life’s Retirement Solutions Division. “By placing these Invesco® funds inside our variable annuities, we are one of the first to give investors an additional vehicle to get the growth and protection they need without sacrificing flexibility.”

The Invesco® V.I. Defined Outcome Funds also provide added transparency through a tool available on the Invesco. It gives financial professionals and their clients the ability to view the cap, buffer, and time remaining in the outcome period for each fund.

“Invesco offers clients the flexibility to invest for their futures with a wide range of investment options,” said Clint Harris, head of wealth management platforms for Invesco. “We look forward to partnering with Pacific Life to expand its offering of investment options and help clients reach their financial goals by delivering customized strategies designed by Invesco Investment Solutions.”

New York Life Offers New Participating Individual Disability Insurance Policy

New York Life has announced the launch of MyIncome Protector, the first in a suite of solutions designed to replace a portion of income in the event of a disability.

“Disability insurance helps protect what is often consumers’ greatest asset: their ability to earn an income. With one in four 20-year-olds likely to become disabled at some point before retirement, it’s important to protect against the loss of income with a solution that helps maintain a family’s lifestyle and savings potential by providing funds to pay ongoing household expenses,” said Aaron Ball, senior vice president and head of insurance solutions, service and marketing, New York Life. “The launch of MyIncome Protector builds on our suite of protection-oriented solutions and enables New York Life’s financial professionals to provide trusted guidance and help their clients become more financially secure.”

MyIncome Protector is designed to help consumers protect a significant portion of their income (between 50% to 70%) should they become disabled. It can be used to supplement benefits that may be received under employer benefit programs, and it provides a permanent and completely portable benefit for consumers, with premiums guaranteed until age 67. It also features unique benefits for small business owners and medical professionals.

“An important component of a sound financial plan, disability insurance is a valuable and portable financial protection tool. MyIncome Protector marks the first of a series of innovative solutions backed by the superior financial strength of New York Life,” said Paul Fromm, vice president and head of disability income solutions, New York Life. “MyIncome Protector provides a monthly disability benefit if the insured becomes disabled, and offers three definitions of total disability to choose from. These unique product packages – Core, Pro and Max – are available with different definitions of disability and a range of benefits, eleven rider options, and the ability to create a custom policy. Clients can work with their New York Life financial professional to choose the right coverage for their needs and budget.”

MyIncome Protector offers additional features including:

• Two riders focused exclusively on business owners.

  • Unique to New York Life, the Business Support Rider provides an additional lump sum spread over four payments to business owners who become totally disabled.

  • The Business Loan Rider reimburses business owners’ share of any loan payments made on a business loan when the business owner is disabled during the rider’s term period.

• The automatic inclusion of “Medical Specialty Own Occupation” on every policy, which enables medical professionals who limit their occupation to the duties of a recognized medical or dental specialty to have the duties of that specialty considered their own occupation.

• Automatic Benefit Increase and Optional Benefit Increase options that enables the insured to increase the monthly disability benefit by up to 10% a year for the first five years without medical evidence of insurability.

MyIncome Protector policy owners will be eligible to receive dividends at the end of the policy’s fifth year and a 5% discount on premiums for all years available for existing New York Life policy owners of eligible insurance and investment products.

Securian Financial Introduces Protection-Focused IUL with No-Lapse Guarantee

Securian Financial has launched Value Protection Indexed Universal Life (IUL), a low-cost, protection-focused indexed universal life insurance policy with a built-in no-lapse guarantee.

A leading accumulation-focused IUL carrier since it entered the market in 2006, Securian Financial is expanding its IUL portfolio and planting a flag in the protection space with the introduction of Value Protection, issued by Minnesota Life Insurance Company. The product offers affordable, permanent coverage at a competitive price—paying a death benefit even if the policy does not have enough cash value to cover monthly policy charges. The no-lapse guarantee provides coverage for the earlier of 40 years or a specific age based on underwriting class at issue.

“Value Protection IUL offers clients simple, affordable protection that could last a lifetime—a must-have for all financial professionals’ product portfolios,” said Ben Roth, Securian Financial’s national sales vice president for retail product distribution. “We are excited to introduce this protection-focused IUL to distributors who know us well for our popular accumulation-focused products.”

Optional living benefits available for an additional fee with Value Protection IUL include an accelerated death benefit for chronic illness agreement. The agreement gives clients access to their death benefit if they are unable to perform two of six activities of daily living (ADLs) and meet other eligibility requirements.

Additional key features of Value Protection IUL include the following:

• Multiple indexed account options, including both capped and uncapped options, and a fixed account that credits a minimum of 2% growth annually.

• Policy reminder emails to help financial professionals service client contracts.

• Face amounts from $100,000 (minimum) to $5 million (maximum).

• Securian Financial’s strength and ratings.

 Value Protection IUL is available to all Securian Financial-approved distribution channels.

Cigna Employees Kick Off $25 Million Healthier Kids for Our Future Initiative by Fighting Childhood Hunger Globally

Global health service company Cigna Corporation has kicked off Healthier Kids for Our Future, a $25 million five-year global initiative to improve the health and well-being of children. Cigna's 74,000 global employees will work together to put children on a healthier path, starting with reducing childhood hunger and improving nutrition in local communities. Today, Cigna employees are working side-by-side to pack food for elementary school students who might otherwise go hungry on the weekends, in partnership with the non-profit organization, Blessings in a Backpack.

Healthier Kids for Our Future is part of Cigna’s $200 million investment to support local communities and improve societal health announced at the close of the company’s transaction with Express Scripts in December, 2018.

 “Cigna’s goal is to set a course for children to live healthy lives. Children who go hungry are more likely to be in poor physical health, struggle with mental well-being and suffer from preventable chronic conditions,” said David Cordani, president and chief executive officer of Cigna. “At Cigna, we are focused on improving peace of mind for the people we serve, and to do this, we need to serve the communities where they live, work and play. Our goal is to address food insecurity for children in order to help build healthier communities in the future.”

According to Blessings in a Backpack, there are more than 13 million United States children at risk of hunger. Research has shown that food insecurity and hunger can significantly affect a child’s short-term and long-term physical and mental health and may lead to poorer health outcomes later in life. Blessings in a Backpack, which has partnered with Cigna locally since 2013 is currently feeding more than 87,000 children in more than 1,000 schools across the United States.

“We are thrilled to expand our work together and help feed the many children who go hungry when they are not in school. Everything we do to support the health and well-being of children makes a difference and gives these students a path to a brighter future,” said Brooke Wiseman, chief executive officer of Blessings in Backpack.

The packing events are taking place, often simultaneously, in several cities where Cigna has a significant presence and the backpacks will be distributed in those local communities.

94% of Millennials Plan on Making Financial Resolutions in 2019

Nearly all American millennials (94%) plan on making financial resolutions in 2019, according to new data from Principal Financial Group®. As the year winds down, more Americans are reflecting on where they busted their budgets in 2018, and importantly, what they’re committed to correcting in 2019.

 Food broke the bank for Americans in 2018, taking the top two spots on the list of budget-busters. Dining out (29%) and food/groceries (27%) led the way, while clothing/apparel (21%), entertainment (17%) and vehicle expenses (17%) also made discernible dents.

 At the same time, Americans cite their biggest financial blunder as not saving enough (22%) in 2018, followed by not budgeting properly (11%). Other top blunders include the following:

•  Taking on more debt (10%).

• Spending outside their means (9%).

• Accumulating credit card debt (9%).

 “There’s no one-size-fits all magic bullet for spending versus saving. However, the more we can think about spending and saving instead of spending or saving, the better off people will be,” said Jerry Patterson, senior vice president of retirement and income solutions at Principal®. “Taking a hard look at where we missed the mark and committing to making the right changes is a key step for 2019 well-being.”

 In spite of these blunders, optimism comes from a fresh start in financial New Year’s resolutions. The top resolutions in 2019 overall include:

•  To save more each month (46%).

• Reduce spending each month (38%).

• Pay off credit card debt (29%).

• Build an emergency fund (24%).

• Save more for retirement (21%).

“The new year is a chance for new opportunities and a clean slate. The challenge will be taking those good intentions and making them last into February and beyond,” added Mr. Patterson.

More than one half of those surveyed (56%) are optimistic about the economy in 2019. The new year, however, isn’t without worry. The top concern is health care instability (40%), with about one half (49%) of Baby Boomers having the highest level of uneasiness. Other burdens include fluctuating gas (37%) and food prices (36%), political uncertainty (28%) and wages (23%).

“While Americans are feeling optimistic, they remain cautious about things that seem out of their control,” said Mr. Patterson. “The fact is we’ll never be able to control all the variables in our lives, but we can do smart, simple things to set ourselves up for success and help us better weather any possible storms.”

Lincoln Financial Group Launches Fixed Indexed Annuity to Help Boost Retirement Savings through Immediate 6% Bonus

To help quell client concerns over market volatility and its impact on retirement portfolios, Lincoln Financial Group has introduced Lincoln OptiBlend® Plus fixed indexed annuity. This new solution is designed to help clients jump start their retirement savings with an immediate account bonus of 6%, added to their account value at the time the annuity is purchased. An optional lifetime income rider, Lincoln Lifetime IncomeSM Edge, is also available with Lincoln OptiBlend® Plus and can be elected at issue or added on a contract anniversary for an additional cost.

“Lincoln OptiBlend® Plus builds on the success we’ve seen with our top-selling Lincoln OptiBlend 10 fixed indexed annuity, and provides customers with the opportunity to achieve higher income during retirement,” said Tad Fifer, head of Fixed Annuity Sales and RIA Sales & Strategy at Lincoln Financial Distributors. “We are committed to our fixed business – an area where Lincoln has seen significant growth -- and offering solutions that provide clients with even greater value through protected lifetime income.”

A recent study from Lincoln Financial Group shows that market volatility is a top concern for pre-retirees. In fact, 70% claim they can only afford to lose 10% or less of their savings before having to adjust their retirement plan or savings goals. And among those closest to retirement (less than 3 years away), 87% are concerned with protecting the wealth they have accumulated. LIMRA Secure Retirement Institute research shows fixed indexed annuities sales hit record levels in the second quarter of 2018. They offer protection for principal and investment growth potential, which is attractive to consumers in volatile market conditions. Expansion in the fixed indexed annuity market has contributed to Lincoln’s fixed annuity sales more than doubling, to nearly $900 million in the third quarter.

Lincoln OptiBlend® Plus is a flexible premium deferred annuity that offers the same fixed and indexed accounts as Lincoln OptiBlend 10, plus the added benefits of a premium bonus. The solution’s three index-linked interest crediting strategies offer the potential for earnings tied to the performance of an outside index, in addition to a fixed account option for accumulation. You cannot directly invest in any index. Past performance does not guarantee future results.

For more information about Lincoln OptiBlend® Plus, please visit: www.LFG.com/income.