Addressing customers’ desires for simplicity, flexibility and cost efficiency in their retirement planning, Transamerica has made enhancements to the Transamerica Income Edge living benefit rider, along with launching two new lower cost investment options.
Changes to the optional living benefit include a fee reduction, along with shortening the waiting period from five years down to three years for a customer to be eligible to start receiving a higher living benefit withdrawal percentage.
With the Transamerica Income Edge living benefit, if investors wait three years after investing to begin taking withdrawals, they would be eligible for an automatic one percent increase on their withdrawal percentage, which escalates based on a tiered age scale. After three full years, investors with a single life benefit who begin withdrawing between the ages of 59-64 can receive five percent income for life, those who begin withdrawing while in the 65-79 age range can receive 6 percent income for life, and if waiting until age 80 or older, the investor could receive seven percent income for life.
In addition to making changes to the living benefit, Transamerica launched two new index portfolios approved for rider eligibility through Transamerica Income Edge.