Press release
Principal® Adds New Annuity With Guaranteed Lifetime Income Option
DES MOINES, Iowa--(BUSINESS WIRE)-- With the number of people in the United States aged 65 years and older on the rise, Principal Financial Group® has
About this update from Principal Financial Group Inc
[{"type":"text","content":" DES MOINES, Iowa--(BUSINESS WIRE)--\nWith the number of people in the United States aged 65 years and older on the rise, Principal Financial Group® has launched its second Registered Index-Linked Annuity (RILA), Principal® Strategic Income, that helps individuals nearing or in retirement create guaranteed lifetime income while still building and protecting their retirement savings.\n\n\n“A convergence of factors has accelerated the demand for annuities and heightened the need for guaranteed income in retirement,” said Sri Reddy, senior vice president for Retirement and Income Solutions at Principal. “Recent macroeconomic trends – including higher interest rates, volatile equity markets, and inflation – coupled with a growing aging population with longer life expectancies mean Americans need more ways to save and invest to meet their needs in retirement. But the record wave of people turning 65 years of age every day has created a market for annuity solutions that is significantly greater than we have seen in the past, magnifying how important they can be to investors during their peak planning stages.”\n\n\nPrincipal® Strategic Income, which is available to investors through financial professionals, builds on the first RILA Principal debuted in 2023 when annuity sales hit all-time highs1. The new RILA uses a guaranteed lifetime withdrawal benefit, the Secure Income Protector rider, to ensure individuals have a secure source of income in retirement regardless of future investment market performance or how long they live. For a lower cost than some traditional variable annuities with income riders, the Secure Income Protector rider offers two income options:\n\n\n1) A level amount every year that never decreases.\n2) A tiered amount that provides higher income initially and then decreases if the account value reaches zero.\n\n\nUnlike many variable annuities with income riders that lock in a decision at contract issuance, Principal® Strategic Income allows individuals to change their income option one time before they start taking income payments, providing flexibility should income needs change before their first withdrawal.\n\n\nThe increase in demand for annuities can be correlated to the aging U.S. population with more than 73 million Americans reaching age 65 or older by 2030 – a 30.3% increase over 20202. This age demograph...