New Allstate Combo Product Boosts Retirement Savings with Guaranteed Income Stream |
|
|
|
Written by U.S. Insurance News
|
|
Monday, 19 May 2008 |
With retirement savings levels reaching new lows in the United States, Allstate has introduced a product designed to boost investments for American’s post-working years.
By combining Allstate ClearTargetSM Retirement Funds with Allstate Guaranteed Lifetime Income, the company is trying to assist middle-market Americans with saving more money for retirement and having guaranteed income payments for the rest of their lives.
Jim Hohmann, president and CEO of Allstate Financial, a business unit of the Allstate Corporation, said the new combo product is a result of hearing what their customers want.
“Our customers are hard-working Americans with enormous day-to-day demands on their pocketbooks and on their time,” Hohmann said. “They tell us they are looking for simple retirement savings solutions that provide flexibility and access to their money.”
ClearTarget Retirement Funds is a target date mutual fund product that automatically rebalances as consumers approach their retirement date. With the new companion product, Allstate Guaranteed Lifetime Income, customers are guaranteed income payments for as long as they live.
For those who own ClearTarget Retirement Funds, the burden of making investment decisions is shifted from consumers to professionals, who monitor and diversify the investment mix. As a consumer’s retirement date approaches, the managers gradually move the investment mix from a more aggressive portfolio to a more conservative blend of stocks, bonds, and short-term investments.
When Allstate Guaranteed Lifetime Income is added, consumers have additional protection against outliving their income (currently available only on the 2005, 2010, and 2015 funds). Should the mutual fund account be depleted due to withdrawals taken under terms of the Allstate Guaranteed Lifetime Income certificate, consumers still have an income stream for life.
“Allstate’s network of approachable, licensed personal financial representatives can help consumers use this straightforward retirement approach to either get their retirement savings started or make the most of current savings,” Hohmann said.
An Allstate ClearTarget Retirement Fund, available to people age 50–80, can be opened for an initial investment of $2,500 minimum.
Allstate is launching ClearTarget Retirement Funds in all states. Allstate Guaranteed Lifetime Income will be introduced in approved states.
|
