Great-West Financial® and Wells Fargo Advisors to Provide New Retirement Income Solution
Dual strategy, low-cost variable annuity offers advisors ability to design investment and income plan through single solution
GREENWOOD VILLAGE, Colorado., March 2, 2016 — Great–West Financial today announced that "Great-West Smart Track II — 5 Year Variable Annuity" will be made available from Wells Fargo Advisors, LLC through the firm's approximately 15,000 financial advisors. This unique, low-cost1 variable annuity seeks to provide advisors with a flexible and customizable solution for clients seeking investment growth and retirement income.
"The need for innovative, new retirement income solutions is becoming increasingly evident in the market. Together, with Wells Fargo Advisors, we're excited to be providing Smart Track II — a customizable, low-cost offering that advisors and their clients can employ as part of a comprehensive financial plan," said Bob Shaw, president of Individual Markets for Great-West Financial.
Shaw noted that the challenge facing annuity providers and advisors is to help more Americans understand that longevity risk — the possibility that a retiree's assets will be depleted later in life — is an important consideration in retirement planning.
"If one creates a steady stream of retirement income they cannot outlive then they will have taken steps toward developing the confidence and financial security they deserve," said Shaw.
"We are pleased to have Great-West added to our variable annuity platform here at Wells Fargo Advisors" said Bernie Gacona, Senior Vice President, Director of Annuities. "Bringing value to our clients' retirement planning in the form of tax-deferred asset protection and sustainable lifetime income opportunities is a real win particularly in this time of market volatility. We look forward to working with Great-West in offering the innovative solutions that their variable annuity provides."
"Wells Fargo Advisor’s approach to providing retirement income solutions as part of their clients' retirement planning process is outstanding and we're looking forward to the road ahead," said Mike McCarthy, Senior Vice President, Head of National Sales for Great-West Financial. "This new relationship extends the capabilities of two great organizations that are focused on helping clients achieve lifetime financial security."
Great-West Smart Track II — 5 Year
Smart Track II is a low-cost dual strategy variable annuity. It can be used as an investment-focused variable annuity with a return-of-premium death benefit that allows an investor to lock in income through a guaranteed lifetime withdrawal rider. The key benefits include:
- Same charge for single or joint lifetime retirement income, 0.90%
- The ability to choose single or joint lifetime withdrawals when income begins
- Three ways to potentially increase income during retirement
Investors choosing Smart Track II only pay for the living benefit guarantee on the amount they allocate to it, so it can be customized to their needs. The product offers competitive withdrawal rates — 5 percent at age 65, 6 percent at age 70 and 7 percent at age 80 with the opportunity to increase income during retirement through annual step-ups, and age resets if additional premium is added.
About Wells Fargo Advisors
With $1.4 trillion in client assets as of December 31, 2015, Wells Fargo Advisors provides investment advice and guidance to clients through 14,960 full-service financial advisors and 3,933 licensed bankers. This vast network of advisors, one of the nation's largest, serves investors through locations in all 50 states and the District of Columbia. Wells Fargo Advisors is the trade name used by two separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC (members SIPC). Statistics include other broker-dealers of Wells Fargo & Company. www.wellsfargoadvisors.com
About Great-West Financial
Established 125 years ago, Great-West Financial administers about $25 billion in assets and manages almost a half-million individual accounts2. The company’s offerings range from investments, life insurance, annuities and executive benefits products marketed under the Great-West Financial brand to retirement savings products and services provided by Empower Retirement, the nation’s second-largest retirement plan record keeper by participants3. Great-West Financial is also the No. 2 underwriter of life insurance sold through banks4 and No.3 in bank-owned life insurance sales.5
Together with Empower Retirement, the company administers a total of $465 billion in assets for 7.9 million retirement, insurance and annuity customers.6
Great-West Financial® is a registered mark of Great-West Life & Annuity Insurance Company (GWL&A). It is an indirect, wholly owned subsidiary of Great-West Lifeco Inc. and “A Member of the Power Financial Corporation Group of Companies” ®.
Great-West Financial® refers to products and services provided by Great-West Life & Annuity Insurance Company (GWL&A), Corporate Headquarters: Greenwood Village, CO, its subsidiaries and affiliates. Data on insurance and recordkeeping reflects consolidated information from GWL&A and its subsidiaries. The trademarks, logos, and registered marks used are owned by GWL&A. “A Member of the Power Financial Corporation Group of Companies” is the registered mark of Power Corporation of Canada.
1Compared to other variable annuities with Guaranteed Lifetime Withdrawal Benefits (GLWBs). Source: IRI Annuity Fact Book, "Fees Associated with GLWB and GMIB," April 2013.
2As of June 30, 2015, includes accounts of Great-West Life & Annuity Insurance Company and its subsidiaries.
3PLANSPONSOR June, 2015
4BISRA Life Report, Fourth Quarter 2014, based on total premiums at Dec. 31, 2014
5IBIS Associates, 2014
6As of June 30, 2015
Stephen Gawlik – Office: 303-737-0899; Cell: 617-417-4408