Voya, Alliance Bernstein Create Income Product

Voya Financial announced that its retirement solutions business has added a new retirement income investment option to its recordkeeping platform. 

Designed and supported by AllianceBernstein (AB), the Lifetime Income Strategy solution is now available for 401(k) plan participants of large employers with more than $200 million in plan assets. The age-based, asset-allocation program is designed to help participants convert their savings over time into a stream of guaranteed income that lasts throughout retirement, the firms explain.

“We know Americans are shouldering more responsibility for generating their own income once they leave the workforce, and many are uncertain about how to address this very important aspect of retirement planning,” notes Rich Linton, president of large corporate and individual markets for retirement solutions at Voya Financial. 

As explained by Voya, the Lifetime Income Strategy provides participants with a personalized asset-allocation strategy that helps build up retirement savings, followed by an income benefit for life that is guaranteed by multiple insurers. The program leverages the expertise of AB’s multi-insurer platform, while incorporating both guaranteed and non-guaranteed components into one consolidated program. 

Voya says investors will benefit by having a single, integrated solution with several different insurance companies splitting the responsibility under the various income guarantee contracts.  This diversifies risk and helps participants receive competitive payouts, Voya suggests.

Other important benefits and features of the Lifetime Income Strategy include the following:

• Fiduciary Protection:  AB assumes the role of fiduciary, including taking on full responsibility for the selection of the multiple insurers who provide the guaranteed income component. 
• Investment Flexibility:  Investments for the non-guaranteed component are customizable.  Plan sponsors can choose to utilize their current investment option lineup should they desire, and the program is designed for use as a qualified default investment alternative (QDIA).
• Downside Protection:  The program allows for income growth potential from market gains as well as income protection against market losses through a guaranteed lifetime withdrawal benefit (GLWB).  This feature provides participants with a stream of guaranteed retirement income for life, Voya says.
• Advanced Glide Path:  Investors can select the age they plan to retire and adjust over time their desired level of income protection, if necessary, based on their unique retirement outlook.
• Individual Control:  Participants have the ability to withdraw their assets or transfer to other investment options at their convenience — giving them full control while in the program, including in retirement.

Richard Davies, head of AB defined contribution, predicts the new solution will help employees better navigate the increasing complexity of ensuring they have enough money to live comfortably in retirement. He notes that, as a retirement plan client of Voya, the AB 401(k) plan has recently adopted the Lifetime Income Strategy as its QDIA.

More information is at www.voya.com.