Western & Southern, Fidelity Investments Offer New Approach To Protected Retirement Income

Western & Southern recently introduced IncomePoint — a new single-premium immediate annuity (SPIA) — within employer-based retirement plans administered by Fidelity Investments. Western & Southern is one of four current insurers on Fidelity’s Guaranteed Income Direct platform offering an embedded distribution option for defined contribution plans like 401(k)s, 403(b)s and 457(b)s that will allow participants to convert all or a portion of their savings into an immediate income annuity to provide consistent, pension-like payments throughout retirement.

“Western & Southern is pleased to work with Fidelity on this new approach to help protect retirement income,” said Mark Caner, president of W&S Financial Group Distributors. “Having a steady, sustainable stream of income helps ease the fears that come with retirement. Guaranteed Income Direct helps provide that option to employees enrolled in a traditional retirement savings plan at their company. This is just one more way Western & Southern is helping enhance the financial well-being of those in or nearing retirement.”

In a 2023 retirement study from Western & Southern and LIMRA, nearly half (47%) of respondents expressed a lack of confidence about managing their investments throughout retirement. The study showed the most prevalent concerns to be running out of money, the cost of health care, inflation and cuts to Social Security.

Guaranteed Income Direct allows employees to set up pension-like payments by purchasing an immediate income annuity through an insurer selected by an employer. The solution offers access to lifetime income for employees at all savings levels, with the flexibility to convert any portion of one’s retirement plan savings – regardless of where within the plan that money is invested – into monthly income based on their personal needs. In addition, savings not converted can remain in the workplace savings plan.

Additional details can be found at Western & Southern’s new in-plan annuity site.