Lincoln Financial Group has launched the Lincoln Core Income, built with iShares, the industry’s first ETF-only variable annuity designed to help fee-based advisers address their clients’ retirement income challenges.
Developed through a strategic collaboration with BlackRock, the product features an investment selection comprised entirely of ETFs, providing advisers and their clients with a cost-effective strategy, and guaranteed lifetime income equal to 4 per cent of the initial deposit that increases annually by a 2 per cent cost of living adjustment.
“Lincoln Core Income, built with iShares demonstrates Lincoln’s commitment to product innovation and providing fee-based advisers with guaranteed lifetime income solutions that are specifically built to meet their needs,” says Will Fuller, president, annuity solutions, Lincoln Financial Distributors and Lincoln Financial Network. “This solution captures the opportunity in fee-based advice and the momentum of ETFs – allowing advisers to help their clients secure retirement income through a guaranteed lifetime income strategy that increases each year.”
“We’re seeing a tremendous shift take place in the advisory space, as more advisors transition to fee-based models,” says Salim Ramji, head of BlackRock’s US wealth advisory business. “These advisers are looking for simple, transparent solutions that provide their clients with income. Through our collaboration with Lincoln, fee-based advisers can now offer their clients an ETF-based annuity option to help meet lifetime income goals in retirement.”
BlackRock is customising a version of its iRetire digital retirement planning technology available to financial advisors who wish to explore certain features of Lincoln Core Income, built with iShares with their clients. Over 75,000 advisers have access to the iRetire technology which offers guidance on building client portfolios that help support lifetime income in retirement. With this customised version of the iRetire technology, advisers will be able to see the potential benefits of adding guaranteed lifetime income into their clients’ financial plans.
“Retirement savers face significant challenges in today’s environment, given demographic trends and the fraying of traditional government and corporate safety nets. Today, annuities can help savers create predictable lifetime income in retirement,” adds Fuller. “Fee-based annuities present a significant long-term growth opportunity and we expect this product to help capture the shift toward passive investing – providing fee-based and registered investment advisers with a solution that can help their clients address income needs in retirement.”