An arm of the Nationwide Mutual Insurance Company settles a variable annuity fee that includes a lifelong income.
Nationwide Advisory Solutions has signed a nationwide Advisory Retirement Income Annuarance (NARIA).
(Connected: Nationwide adds guaranteed payout benefits)
The agreement gives buyers access to approximately 130 funds in 25 fund families.
An optional feature, the NARIA Retirement Income Developer benefit, can add a lifetime payout benefit. If the investment in a pensioner's contract proves to be good, a repayment reserve may increase the amount of the disbursement benefit.
Nationwide Advisory Solutions has launched another contract for RIAs and fee-based advisers, an immediate one-year annuity, in October 2018. This pension, the Nationwide Advisory Income contract, can turn a large one-off payment into a steady stream of income.
(Connected: Nationwide goals New single-premium annuity for RIAs)
Throughout Germany, there are now relationships with around 5,500 registered investment advisers and fee-based advisers.
Nationwide will help RIAs without insurance licenses to offer the new variable annuity contract by offering services from accredited insurance agents. Nationwide bundles the cost of the licensed agent service in the order cost.
This is the annual contract fee listed for Nationwide Advisory Solutions for the product in a February registration filed with the Securities and Exchange Commission, expressed as a percentage of daily net assets:
- Mortality and cost burden: 0.15%
- Administration fee: 0.05%
- The maximum cost for the retirement income developer: 1.25%.
Submitted to the SEC are links to NARIA product documents available here,
A copy of the product registration statement is available here.
– Read 5 risks that every issuer of an indexed pension fund must consider, on ThinkAdvisor.