Lincoln Financial Group is expanding its lineup of guaranteed lifetime income offerings.
The asset manager announced on Tuesday that it would be growing its Lincoln PathBuilder Income product, powered by YourPath, to add a lifetime income guarantee to an underlying asset allocation investment fund.
The newly added lifetime income balanced fund option is available within managed accounts and as a stand-alone option in defined contribution (DC) retirement plans. With the product, participants can: “Receive guaranteed payments for the rest of their lives; Enjoy protection in times of declining markets; Participate in rising markets with potentially higher income levels; and Have flexibility and access to their underlying account value should their needs change,” according to a release announcing the product.
The latest development comes as a higher rate of asset managers offer lifetime income products, in an effort to reach demand among participants who want features that offer downside protection and guaranteed income. In May, TIAA and its asset management arm Nuveen announced that assets for its lifetime income target-date solutions had reached $35 billion.
Previous findings from Lincoln’s 2023 Wellness@Work study found that 35% of participants said they would increase their contributions if offered a guaranteed retirement income option and 72% of non-participants say having a guaranteed income option in their plan would encourage them to participate, up from 52% in 2021.
“After the success of our current guaranteed lifetime income products, we saw the opportunity to develop additional options to be used in a variety of other settings,” says Matt Condos, senior vice president of Retirement Plan Services Product Solutions. “Our full suite of Lincoln PathBuilder Income powered by YourPath products are truly a differentiator for Lincoln clients when it comes to flexibility, choice and customization in the guaranteed lifetime income space.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.