Variable annuities and Encore Lifetime Income – A good match for today's retirement
Variable annuities are designed to help provide long-term financial security. That's why they can be a good match for the reality of today's retirees. Along with the guaranteed income protection provided by the Encore Lifetime Income optional benefit, annuities also offer:
- Tax-deferred earnings, allowing you to grow your retirement assets faster, since you don't pay taxes on earnings until withdrawn.
- Investment flexibility, so you can develop a customized investment strategy to match your goals and risk comfort level while working within the asset allocation options provided for optional living benefits.
- Death benefit protection and guarantees to provide for the people you care about once you're gone.
- Lifetime income with a variety of ways to receive your income in retirement, including "annuitizing" your income to receive a permanent stream of income payments. That's a unique benefit only annuities provide. You can select from a range of guaranteed income options to meet your needs, although the terms of the annuity income can't be altered once it goes into effect. Optional benefits such as Encore Lifetime Income are available at an additional cost to provide future retirement income protection.
Combined, these benefits help you keep your retirement income on track – while you pursue the retirement you've envisioned.
What else should I know?
You have the opportunity to select a variable annuity with the combination of features and benefits that fit your needs and goals. The cost of the variable annuity will vary based on your selections. Costs include annual mortality and expense fees, administrative and investment management fees and any cost for optional benefits when applicable. Deferred sales charges may apply on early withdrawals.
Variable annuities are subject to market fluctuation, investment risk and loss of principal. Investment performance of the variable investment options is not guaranteed and you can lose money investing in a variable annuity. The Encore Lifetime Income benefit does not assure growth of the annuity contract's value.
Encore provides an option for lifetime income without requiring annuitization. While Encore guarantees lifelong income in the form of withdrawals for life and allows for more income flexibility than annutization, the guaranteed income amounts may be lower than if your contract were annuitized.
For any MultiOption contract that includes a Credit Enhancement, the Credit Enhancement is treated as earnings as it applies to optional benefits. Earnings from variable annuities are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value. This information is a general discussion of the relevant federal tax laws. It was not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.
Guarantees are based on the financial strength and claims-paying ability of the issuing company.
An annuity is a long-term, tax-deferred investment vehicle designed for retirement. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals. Variable annuities have additional expenses such as mortality and expense risk, administrative charges, investment management fees and rider fees. Variable annuities are subject to market fluctuation, investment risk and loss of principal.
Not all products and optional benefits are available in all states and features may vary by state.
Encore Lifetime Income is available with MultiOption® Advisor, Legend, and Extra variable annuities. Refer to the applicable current prospectus online. Contact your advisor for more information about the costs and details about Securian's variable annuities and the optional benefit, Encore Lifetime Income. You should consider the investment objectives, risks, charges and expenses of a portfolio and variable insurance product carefully before investing. The portfolio and variable insurance product prospectuses contain this and other information. Please read the prospectus carefully before investing.
Products are not federally (FDIC/NCUA) insured – May lose value – No financial institution guarantee.
Guarantees are based on the financial strength and claims-paying ability of the issuing company.
This information is a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.
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