GREENWOOD VILLAGE, Colo. July 14, 2016 — Great-West Financial is announcing the expansion of its retirement income suite with two new Guaranteed Lifetime Withdrawal Benefit (GLWB) riders for the Great-West Smart Track® II – 5 Year Variable Annuity.
The Great-West Secure Income Plus GLWB Rider offers a guaranteed benefit base growth through a five percent accumulation credit for 10 years — or until withdrawals begin. The Great-West Secure Income Max GLWB Rider, which is designed to maximize income, rewards investors who wish to wait 5 years or more to start taking income with an additional one-percent increase for the life of the contract.
“Our ultimate goal is to help more Americans create the income they need in retirement. We can only do that if we design strategies that offer the potential for more income at a lower cost with better protection for investors,” said Bob Shaw, President of Individual Markets at Great-West Financial. “People are living longer than ever before and we are here to help them prepare financially for the lifestyle they imagine.”
The riders, which officially became available earlier this month, are aimed at offering advisors more flexibility to assist their clients in customizing their retirement income strategy.
“Enhancing Great-West’s variable annuity suite opens up new opportunities for advisors to help their clients create a retirement income stream that’s in line with individual financial goals,” said Mike McCarthy, Senior Vice President for National Sales. “Smart Track II – 5 Year is unlike other strategies already in the market and we believe these enhancements offer exactly what investors are seeking.”
In addition to the new riders, Great-West has expanded the investment options available in the Smart Track II – 5 Year income strategy. Along with the Great-West Secure Foundation® Balanced Fund, Great-West will now offer the following Great-West Profile Funds:
- Great-West Moderate Profile I Fund
- Great-West Moderately Conservative Profile I Fund
- Great-West Conservative Profile I Fund
Smart Track II is a low-cost1 dual-strategy variable annuity. It can be used as an investment-focused variable annuity with a return-of-premium death benefit that allows an investor to lock in income through guaranteed lifetime withdrawal riders, which now include four different options.
The key benefits and riders previously available within Smart Track II – 5 Year will remain the same, including:
- Five-year B-share structure with the same commission commonly found on a seven-year product
- Single life and joint life withdrawal options for the same cost
- Ability to choose a single or joint option when income begins
- Multiple ways to increase income during retirement, including age-band income resets
- Unique investment strategy (with more than 100 subaccounts)
- Return of premium death benefit for an M&E of only 1.20%
Investors choosing Smart Track II only pay for the living benefit guarantee on the amount they allocate to it, so it can be customized to their needs. The product offers competitive withdrawal rates — 5 percent at age 65, 6 percent at age 70 and 7 percent at age 80 with the opportunity to increase income during retirement through annual step-ups, and age resets if additional premium is added.