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Retirement planning for couples can be tricky – especially when there’s a significant age difference.
For couples facing differing retirement timelines and longevity concerns, adding a source of lifetime income and beneficiary protection may help them feel more confident about their future.
Investor case study
David, 62, is planning to retire in three years. For his wife, Sabrina, 50, retirement is still a ways off. They’re concerned that drawing income from their retirement portfolio could leave Sabrina at risk of outliving their assets.
Together, they ask their financial professional to help them create a plan that provides:
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Guaranteed growth leading up to David’s retirement
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Supplemental income for the rest of David’s life
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Asset protection for Sabrina
With the help of their financial professional, they choose to invest in a Lincoln variable annuity with Lincoln ProtectedPay Select Core® and Estate LockSM – optional benefits for an additional cost.1 This powerful combination helps David and Sabrina reach their goals for growth, income and estate protection.
1. David invests $500,000
2. His Protected Income Base grows to $590,0002
3. Protected Annual Income at 5.85%
4. David will receive $34,515 every year for the rest of his life
5. As the beneficiary, Sabrina will receive the full investment amount: $500,0003
More about Estate Lock℠
One of the most significant benefits a Lincoln variable annuity with Lincoln ProtectedPay Select Core® provides is guaranteed lifetime income — another is beneficiary protection with the Estate Lock℠ Death Benefit. When clients elect this combination of optional benefits, they receive guaranteed lifetime income and the assurance of knowing that their full investment amount is protected for their beneficiaries.
Explore more case studies showing the difference Estate LockSM can make.
1 Lincoln ProtectedPay Select Core® is available for an additional annual charge of 1.50% above standard contract expenses (maximum annual charge is 2.75%). Estate Lock℠ is available for an additional annual charge of 0.45% (maximum annual charge is 1.60%). The minimum issue age is 35, the maximum issue age is 75, and it is available for single life contracts only. Estate Lock℠ must be purchased at contract issue with Lincoln ProtectedPay Select Core®.
2 The 6% simple annual growth will continue for the earlier of 10 years or through age 85. The 6% enhancement is not available in any year a withdrawal is taken. Annual account value lock ins are available through age 85.
3 Excess withdrawals reduce Estate Lock℠ in the same proportion as the account value, but the benefit does not decline due to conforming or automatic required minimum distribution (RMD) withdrawals. Benefit terminates if account value reaches $0, but lifetime income would continue.
Variable annuities are long-term investment products that offer a lifetime income stream, access to leading investment managers, options for guaranteed growth and income (available for an additional charge), and death benefit protection. To decide if a variable annuity is right for you, consider that its value will fluctuate; it’s subject to investment risk and possible loss of principal; and there are costs associated. All guarantees, including those for optional features, are subject to the claims-paying ability of the issuer.
Lincoln Financial® affiliates, their distributors, and their respective employees, representatives, and/ or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent professional as to any tax, accounting, or legal statements made herein.
Variable annuities have fees and charges, including mortality and expense, administrative, and advisory fees. The annuity’s value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.
Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable prospectuses for the variable annuity and its underlying investment options contain this and other important information. Please call 888-868- 2583 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.
Lincoln variable annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.
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