The information contained above is for illustrative purposes only. Participants who redeem prior to the annuity purchase will not be eligible for annuity income benefits. A qualified longevity annuity contract (QLAC) purchase is subject to market availability.
1Assumed age at retirement
2 An annuity contract’s financial guarantees are solely the responsibility of and are subject to the claims-paying ability of the issuing insurance company.
3 Average US life expectancy at age 80 is 9.48 years (UN population projections). The annuity described in this paper incorporates a return of premium and cash refund benefit. This means that if the participant (and spouse in the case of a J&S annuitant) dies before they have recouped their initial premium, the difference between the initial premium and the payments received will be returned to the estate.
4 Annuities are issued by third-party insurance companies, which are not affiliated with any State Street Bank and Trust Company entity, including SSGA.
Retirement
Building Longevity
Building Longevity Insurance into DC Plans
State Street offers IncomeWise, an evolved target date fund with embedded longevity
insurance to offer a guaranteed income stream when retirees need it most.
Participant Assets
| Accumulation Strategy | Decumulation Strategy | Guaranteed Lifelong Income | |
| Core Accumulation (<55) Phase 1A |
Pre-Retirement (55–651) Phase 1B |
Drawdown (65–80) Phase 2 |
Late Life (>80) Phase 3 |
| The fund accumulates assets and operates like a normal target date strategy. | The fund starts to allocate a portion of the assets to an annuity prefunding portfolio to prepare for the potential annuity purchase at 65. | If the participant affirmatively elects, part of the accumulated target date assets (e.g., 25%) is used to purchase a deferred income annuity. The remaining assets can be used as a source of income until annuity payments start. | Income is distributed in the form of guaranteed2 lifelong3 annuity4 payments. |
