AllianceBernstein Expands Retirement Income Offerings with AB Secure Income Portfolio

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AllianceBernstein L.P. (AB), a global investment firm with $759 billion in assets, expands retirement income offerings with the AB Secure Income Portfolio. The portfolio provides guaranteed retirement income for Defined Contribution plans without changing their target-date provider. It offers higher growth assets exposure, liquidity, and flexibility for participants. AB has been a pioneer in customizable lifetime income solutions, accumulating over $11 billion in assets. The portfolio is available through an institutional separate account and a collective investment trust (CIT).

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• AB expands retirement income offerings, providing guaranteed retirement income for Defined Contribution plans without changing target-date provider.

• The AB Secure Income Portfolio offers higher exposure to growth assets, liquidity, and flexibility for participants.

• AB has a successful track record as an innovator in customizable lifetime income solutions, accumulating over $11 billion in assets.

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• None.

NASHVILLE, Tenn., May 9, 2024 /PRNewswire/ -- AllianceBernstein L.P. ("AB") (NYSE: AB), a leading global investment firm with $759 billion in assets under management, today announced the expansion of its retirement income offerings with the AB Secure Income Portfolio. This solution will enable Defined Contribution (DC) plans to offer an investment option that delivers guaranteed retirement income to participants without changing their target-date provider, including as a part of a Qualified Default Investment Alternative (QDIA).

The AB Secure Income Portfolio is a professionally managed option that seeks to provide income for life* and higher exposure to growth assets in retirement years than with typical target-date funds, while also providing participants liquidity and access to their assets. This solution is designed for flexible implementation, adapting to plans' diverse needs and preferences—whether it's alongside a plan's existing target-date fund, as an allocation in a managed account or in a "do-it-yourself" approach, with participants selecting AB's Secure Income Portfolio from their plan's core menu. The portfolio is currently available through an institutional separate account and will be available through a collective investment trust (CIT) managed by AB. 

"As more plan sponsors evaluate the retirement income solutions available today and move toward adoption, many are looking for more flexibility in the ways they can implement these solutions," said AB's Head of Defined Contribution Jennifer DeLong.

As an early innovator and leader in providing customizable lifetime income solutions to DC plans, AB has been working with large plan sponsors to help them provide lifetime income to their participants since AB's Lifetime Income Strategy was launched in 2012. The Lifetime Income Strategy may serve as a qualified default investment alternative, combining AB's expertise in glide path design with a flexible guaranteed-income portfolio backed by multiple insurers. The solution has accumulated more than $11 billion in assets, including $4.2 billion in secured income benefits (as of 3/31/2024).

The AB Secure Income Portfolio has been a component of AB's Lifetime Income Strategy for more than a decade. "We've listened to the input from plan sponsors, and we're excited to evolve our suite of services to adapt to their changing needs. Providing plans with a new way to access lifetime income through a DC-friendly CIT will give plan sponsors the convenience and optionality they're looking for," said Ms. DeLong.

Guarantees are provided by insurers selected through a competitive bidding process based on a number of factors, including financial strength. The initial insurers for the CIT may include Jackson National Life Insurance Company® (Jackson®), Lincoln National Life Insurance Company and Nationwide Life Insurance Company*.

For more information on the AB Secure Income Portfolio, visit our website. Please note that this strategy will only be available to certain eligible investors.

*Guarantees are subject to the claims-paying ability of each insurance company.

About AllianceBernstein

AllianceBernstein is a leading global investment management firm that offers diversified investment services to institutional investors, individuals, and private wealth clients in major world markets. As of March 31, 2024, AllianceBernstein had $759 billion in assets under management. Additional information about AB may be found on our website, www.alliancebernstein.com.

 

View original content:https://www.prnewswire.com/news-releases/alliancebernstein-expands-retirement-income-offerings-with-ab-secure-income-portfolio-302140904.html

SOURCE AllianceBernstein

FAQ

What is the AB Secure Income Portfolio?

The AB Secure Income Portfolio is a professionally managed option that delivers guaranteed retirement income for Defined Contribution plans without changing their target-date provider.

How does the AB Secure Income Portfolio differ from typical target-date funds?

The AB Secure Income Portfolio provides higher exposure to growth assets, liquidity, and flexibility for participants compared to typical target-date funds.

How can participants access the AB Secure Income Portfolio?

Participants can access the AB Secure Income Portfolio through their plan's core menu, alongside a plan's existing target-date fund, or as an allocation in a managed account.

What is the total assets accumulated by AB's Lifetime Income Strategy?

AB's Lifetime Income Strategy has accumulated over $11 billion in assets, including $4.2 billion in secured income benefits as of 3/31/2024.

Which insurers provide guarantees for the CIT?

Insurers selected through a competitive bidding process provide guarantees for the CIT, including Jackson National Life Insurance Company, Lincoln National Life Insurance Company, and Nationwide Life Insurance Company.