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海角社区, Investments, & Insurance for Individuals Invest & Retire Annuities Principal庐 Lifetime Income Solutions II Variable Annuity

Principal庐 Lifetime Income Solutions II Variable Annuity

Principal庐 Lifetime Income Solutions II Variable Annuity

Everyone鈥檚 retirement dream is different, but the fear of outliving retirement savings is common.
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Protect your retirement income

Everyone鈥檚 retirement dream is different, but the fears are often the same. One of the biggest being the fear of outliving your retirement savings.

That鈥檚 why it鈥檚 important to protect a portion of your savings. Creating a source of protected income 鈥 that鈥檚 guaranteed for as long as you live -- can help provide the financial security you鈥檒l need in retirement.

In fact, 84% of self-described happy retirees expect, or are currently receiving, guaranteed income from an annuity.1

What is guaranteed retirement income

The money you鈥檙e saving now will need to fund your retirement later. By putting a portion of that savings into an income-focused variable annuity, you can potentially grow your savings now through market-based investments while also creating future retirement income that鈥檚 guaranteed for your lifetime.

There are three sources of income in retirement that you are guaranteed for as long as you live.

  • Social Security
  • Employer pension
  • Income-focused annuity

You may or may not have a pension provided by your employer. And Social Security will only replace about 30% of your pre-retirement income2. If you add those together and it鈥檚 not enough income for you to live on, an income-focused annuity may be what you need.

Benefits of 海角社区Lifetime Income Solutions II

  • Create guaranteed income for life -- you choose when to start taking it

  • Tax-deferred growth

  • Three guaranteed income options to choose from

  • Bonus and step-up features guarantee income growth regardless of how your investments perform

  • Compounding interest on your potential investment earnings

Some factors to consider about a variable annuity: There are potential surrender fees and penalties for early withdrawal, and fees are typically higher on variable annuities than on fixed annuities. Please discuss the pros and cons of a variable annuity with a financial professional to see if it's a right fit for your financial plans.

How 海角社区Lifetime Income Solutions II works

海角社区Lifetime Income Solutions II (PLIS II) is a market-based investment that allows you to create a source of retirement income. Your money will grow tax-deferred and benefit from compounding growth potential. Money that grows in your account will have two associated values鈥 your account value and your withdrawal benefit base. The withdrawal benefit base is guaranteed for life.

Choose a guaranteed income rider

When you invest in PLIS II, you鈥檒l choose one of our three guaranteed income riders. Your money will grow based on the performance of the investments you choose within the rider. The rider that鈥檚 best for you may depend on several factors:

  • Your comfort level with investment risk.
  • Fees associated with the rider.
  • Whether or not a bonus is right for you.
  • The amount of time before you intend to start retirement income payments.

Here are some things to consider when deciding which guaranteed income option is best for you:

Target Income Protector

  • 海角社区 at least 10+
  • Looking for a higher guaranteed income stream
  • Want growth potential even when markets are down
  • Willing to pay higher fees to help maximize future income guarantees

Flexible Income Protector

  • Plan to retire within 5 years
  • Looking for a lower cost solution and want to avoid fees
  • Want market growth opportunities

Flexible Income Protector Plus

  • Plan to retire within seven to ten years
  • Interested in market growth opportunities
  • Want to limit investment losses in volatile markets
  • Looking for growth potential even in down markets
Locking in investment gains

When you experience gains within your investment account, you are also building your withdrawal benefit base. It鈥檚 this base that will create your guaranteed future income.

Any investment gains are locked in via a 鈥渟tep-up鈥. The step-up is applied annually and ensures that gains are locked in to your base.4

And we鈥檝e created ways for your income to grow even if your investment doesn鈥檛. Depending on which rider you choose, you could receive a bonus during years your investments don鈥檛 grow and a step-up isn鈥檛 available. The bonus keeps your future income growing even when your investments aren鈥檛.

Like the step-up, bonuses are locked in. Income from this base is guaranteed for as long as you live.

Graph showing growth and market gains of annuities

This example is hypothetical and is not meant to show actual results or predict future results. It鈥檚 intended to be educational in nature and is not intended to be taken as a recommendation. Your circumstances and experience will be different than that shown.
Take income when you want it

You can begin taking income whenever you decide to retire. This is when you choose whether you want income for one or two people.5

You鈥檒l receive an amount based on how much money you鈥檝e accumulated in your benefit base, your age when you begin taking income, and possibly how long you鈥檝e been in the contract. These factors, along with the withdrawal percentage available when you purchased your contract, are used to determine the monthly income you鈥檒l receive.6

Here鈥檚 an example of how this works:

You have $300,000 in your benefit base
Your lifetime withdrawal percentage is 5.25%5
This guarantees you a monthly income payment of $1,312.50

This income is guaranteed for life. You鈥檒l receive this income even if your scheduled payments eventually exceed your account value.6

This example is hypothetical and is not meant to show actual results or predict future results. It鈥檚 intended to be educational in nature and is not intended to be taken as a recommendation. Your actual circumstances and experience will be different than that shown.

Is Principal庐 Lifetime Income Solutions II right for you?

This could be a good investment if you:

  • Want to secure guaranteed income for your retirement.
  • Want to keep your money invested in the market for potential growth until you retire.
  • Want your money to keep growing tax-deferred.
  • Are willing to pay some fees based on the guarantees you receive in return.
  • Would like any of your unpaid benefits passed on to your beneficiaries.
See how we can help

Talk with your financial professional to learn more and decide if 海角社区Lifetime Income Solutions II is right for you.

1 海角社区海角社区 Security Survey, Q4 2021

2 ssa.gov/news/press/factsheets/basicfact-alt.pdf, 2022

3 Some riders may not be available in all states or with all broker dealers.

4 The annual step-up is a feature on all of our guaranteed income options and is available until you turn age 80 or you鈥檝e been in the contract for 10 years, whichever comes later.

5 Lifetime income payments are based on single life unless you choose joint life payouts at the time of your first withdrawal. Joint life payouts are based on the youngest owner鈥檚 age when the first withdrawal is taken. Payments will continue until the death of the owner and eligible spouse (if joint life elected).

6 Current withdrawal percentages can be found in the GMWB Charges and Percentages Prospectus Supplement.

7 If excess withdrawals reduce your withdrawal benefit base to zero, your income payments will end. Excess withdrawals could be subject to surrender charges.

Before investing in variable annuities, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and underlying investment options. This and other information is contained in the free prospectus, and, if available, the summary prospectus which can be obtained from your local representative or online at principal.com. Please read the prospectus and, if available, the summary prospectus carefully before investing.

There are risks involved with investing, including possible loss of principal. There is no assurance that the goals of the strategies described will be met. 

This document is not a recommendation and is not intended to be taken as a recommendation. This material was prepared for general distribution and is not directed to a specific individual.

Guarantees are based on the claims-paying ability of the issuing insurance company.

All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not obligations of, nor backed by, the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Withdrawals prior to 59陆 are subject to a 10% IRS penalty tax.

Tax-qualified retirement arrangements, such as IRAs, SEPs and SIMPLE-IRAs are tax-deferred. Consequently, an annuity should be used to fund an IRA, or other tax qualified retirement arrangement, to benefit from the annuity鈥檚 features other than tax deferral. These features may include guaranteed lifetime income, death benefits without surrender changes, guaranteed caps on fees, and the ability to transfer among investment options without sales or withdrawal charges.

Annuities aren鈥檛 insured by the FDIC, aren鈥檛 guaranteed by any other financial institution, and involve risk. The risk includes potentially losing your premium invested if the issuing insurance company isn鈥檛 able to meet its obligation.

The subject matter in this communication is provided with the understanding that Principal庐 is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Contract rider description is not intended to cover all restrictions, conditions, or limitations. Refer to rider for full details. Rider subject to state availability and may be subject to an additional charge. 

Principal庐, 海角社区Financial Group庐, and 海角社区and the logomark design are registered trademarks of 海角社区, Inc., a 海角社区Financial Group company, in the United States and are trademarks and services marks of 海角社区, Inc., in various countries around the world.

海角社区Lifetime Income Solutions II is issued by 海角社区Life Insurance Company. Securities offered through 海角社区Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies of the 海角社区Financial Group庐, Des Moines, Iowa 50392

漏 2023 海角社区, Inc.

Contract ICC16 SF 968, SF 968

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