Equitable Enhances Flagship Retirement Solution for K-12 Educators

Rhea-AI Summary

Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), has launched EQUI-VEST® Series 202, an enhanced version of its deferred variable annuity product line for K-12 educators. This new series, available to employees in 403(b) plans at public schools across the U.S., introduces a Structured Investment Option that allows participants to benefit from potential market gains while providing protection against losses.

Key features include:

• Buffered indexed options with downside protection up to -30%
• Longer segment periods and opportunity to lock in gains
• Growth potential mirroring selected index up to a cap
• Option to convert account values into guaranteed lifetime income at retirement

As the leading provider of registered index-linked annuities, Equitable aims to address market volatility concerns and help educators supplement their retirement savings effectively.

Positive

• Introduction of EQUI-VEST® Series 202, enhancing retirement solutions for K-12 educators
• New Structured Investment Option offering potential market gains with downside protection
• Unique 403(b) product offering a variable annuity with an index-linked option
• Option to convert account values into guaranteed lifetime income at retirement
• Equitable's position as the leader in retirement plans for the K-12 educator market

Negative

• None.

Financial Analyst

Equitable's launch of EQUI-VEST® Series 202 is a strategic move in the competitive 403(b) market for educators. The introduction of the Structured Investment Option with buffered indexed options and downside protection up to -30% addresses the growing concern about market volatility. This product differentiation could potentially increase Equitable's market share in the K-12 educator segment, where they already hold a leading position. The ability to offer guaranteed income options at retirement also aligns with consumer preferences, potentially boosting product appeal and adoption rates. However, the impact on Equitable's financials will depend on the product's pricing structure and risk management strategies, which are not disclosed in the announcement.

Market Research Analyst

Equitable's new offering is well-timed, aligning with current market sentiment. With 60% of Americans viewing economic conditions as highly volatile, there's a clear demand for products offering both growth potential and downside protection. The unique feature of being the only 403(b) product with an index-linked option in a variable annuity could be a significant differentiator. The focus on educators, a stable and growing demographic, is strategic. However, the success will largely depend on education and marketing efforts to explain the complex features of the product to a traditionally risk-averse audience. The long-term impact on Equitable's business will be determined by adoption rates and how well the product performs in various market conditions.

Retirement Planning Expert

EQUI-VEST® Series 202 addresses key concerns in retirement planning: market volatility, longevity risk and decumulation. The Structured Investment Option offers a balanced approach to growth and protection, which is particularly valuable in uncertain economic times. The guaranteed income option at retirement is crucial, as it helps solve the complex problem of sustainable withdrawals in retirement. This aligns with the 66% of Americans preferring steady income over self-managed withdrawals. For educators, whose pensions often fall short of full income replacement, this supplementary option could be vital. However, the complexity of these products may require significant financial education efforts to ensure educators fully understand and utilize the benefits effectively.

NEW YORK--(BUSINESS WIRE)-- Equitable, a leading financial services organization and principal franchise of Equitable Holdings, Inc. (NYSE: EQH), today announced a new series to its EQUI-VEST line of deferred variable annuity products, EQUI-VEST® Series 202. This enhanced version is designed to help educators supplement their retirement savings by providing additional choices, flexibility and a level of certainty.

EQUI-VEST® Series 202 is available to employees enrolled in a 403(b) plan at public schools across the United States.¹ One notable enhancement, the Structured Investment Option, allows participants to capitalize on potential market gains, up to a cap, while maintaining a level of protection against market losses. Specifically, it provides buffered indexed options that include downside protection up to -30%, longer segment periods and the opportunity to lock in gains. It also provides growth potential that mirrors the index selected up to a cap. EQUI-VEST is the only 403(b) product in the market that offers a variable annuity with an index-linked option.

“Nearly six in ten Americans view the current economic conditions in the U.S. as highly volatile, according to a recent Equitable survey.² This has workers increasingly looking for solutions to help grow and protect their retirement savings,” said Jim Kais, Head of Group Retirement for Equitable. “Our new EQUI-VEST series builds on our expertise as the leading provider of registered index-linked annuities,³ adding an investment option that helps address these concerns. We hope this makes planning for the future a bit more reassuring for educators, so they can stay focused on teaching their students.”

Along with helping to manage market volatility, EQUI-VEST® Series 202 also addresses longevity risk and decumulation concerns. At retirement, plan participants have the option of turning their 403(b) account values into guaranteed income for the rest of their lives. Equitable research shows that nearly two-thirds of Americans would prefer a steady paycheck rather than having to determine how much to withdraw from their retirement accounts.⁴

“While pensions are the primary retirement savings vehicle for many public-school teachers, we often find this source of income is not enough on its own to fully replace their income in retirement,” explained Kais. “Our new EQUI-VEST series provides educators with additional options and flexibility to help meet their individual needs, as many depend on their 403(b) plans to supplement their savings for retirement.”

For nearly five decades, Equitable has served more than 800,000 educators across the country as the leader of retirement plans for the K-12 educator market.⁵ Equitable Advisors has more than 1,100 financial professionals dedicated to supporting educators, providing trusted financial services and strategies to help them supplement their income and make sound financial decisions.

About Equitable:

Equitable, a principal franchise of Equitable Holdings, Inc. (NYSE: EQH), has been one of America’s leading financial services providers since 1859. With the mission to help clients secure their financial well-being, Equitable provides advice, protection and retirement strategies to individuals, families and small businesses. Equitable has more than 8,000 employees and Equitable Advisors financial professionals and serves 3 million clients across the country. Please visit equitable.com for more information.

Reference to the 1859 founding applies specifically and exclusively to Equitable Financial Life Insurance Company. Equitable is the brand name of Equitable Holdings, Inc., and its family of companies, including Equitable Financial Life Insurance Company (NY, NY) and Equitable Financial Life Insurance Company of America, an Arizona stock company with an administrative office located in Charlotte, NC, issuers of annuity and life insurance products. Equitable Advisors Financial Professionals offer securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN) and offer annuity and insurance products through Equitable Network, LLC (Equitable Network Insurance Agency of California, LLC; Equitable Network Insurance Agency of Utah, LLC; Equitable Network of Puerto Rico, Inc.

Variable annuities are long-term financial products designed for retirement purposes. In essence, an annuity is a contractual agreement in which payments are made to an insurance company, which agrees to pay out an income or a lump-sum amount at a later date. The variable investment options offered in this contract will fluctuate in value and are subject to market risk, including loss of principal.

EQUI-VEST® Series 202 is offered by prospectus, which contains complete information on investment objectives, fees, charges and expenses. For a prospectus, contact your financial professional or Equitable Financial Life Insurance Company of America (Equitable America). Please read it carefully before investing or sending money.

Certain types of contracts, features and benefits may not be available in all jurisdictions or in all 403(b) or 457 plans. All guarantees are subject to the claims paying ability of Equitable Financial Life Insurance Company of America. With regard to partial downside protection, there is a risk of a substantial loss of principal and previously credited interest because the contract holder agrees to absorb all losses to the extent that they exceed the downside protection provided.

Reference to EQUI-VEST being the only 403(b) product in the market that offers a variable annuity with an index-linked option is as of as of September 12, 2024. This statement is subject to change at any time without notice.

The subsidiaries of Equitable Holdings, Inc., do not provide tax or legal advice. The EQUI-VEST® 202 variable annuity is issued by Equitable Financial Life Insurance Company of America (Equitable America) (not in New York), an AZ stock company with an administrative office located in Charlotte, NC. Co-distributed by affiliates Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) and Equitable Distributors, LLC. GE-6992492.1(09/24) (exp.09/26).

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¹ EQUI-VEST Series 202 is available when approved in each jurisdiction, with the exception of New York. The product is available to new 403(b) clients at public schools, colleges and universities as well as 457(b) clients at public schools. It is also available to clients in the nonprofit and 457 governmental markets.

^{2, 4} The survey was conducted by an independent, global consumer and B2B panel provider. Respondents include 1,000 U.S. adults (ages 18 and older), with the total survey population representative of U.S. demographic data. The online survey was fielded from May 22, 2024, through June 1, 2024. Survey participation was anonymous.

³ This information is based solely upon and up to year-end 2023 total sales. This ranking does not reflect or account for investment performance, product quality or other criteria. Source: Secure Retirement Institute U.S. Individual Annuities Sales Survey, 2024.

⁵ LIMRA, Not-for-Profit Survey, Q1 2024 results, based on 403(b) plan participants and contributions. This applies specifically and exclusively to Equitable Financial Life Insurance Company (Equitable Financial).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240912381538/en/

Media:

Monique Freeman

(212) 314-2010

mediarelations@equitable.com

Source: Equitable

FAQ

What is the new product Equitable (EQH) has launched for K-12 educators?

Equitable has launched EQUI-VEST® Series 202, an enhanced version of its deferred variable annuity product line designed specifically for K-12 educators enrolled in 403(b) plans at public schools across the United States.

What is the key feature of Equitable's (EQH) new EQUI-VEST® Series 202?

The key feature is the Structured Investment Option, which allows participants to capitalize on potential market gains up to a cap while maintaining protection against market losses, with buffered indexed options providing downside protection up to -30%.

How does Equitable's (EQH) EQUI-VEST® Series 202 address retirement concerns?

EQUI-VEST® Series 202 addresses market volatility and longevity risk by offering buffered indexed options, longer segment periods, and the option to convert account values into guaranteed lifetime income at retirement.

What makes Equitable's (EQH) EQUI-VEST unique in the 403(b) market?

EQUI-VEST is the only 403(b) product in the market that offers a variable annuity with an index-linked option, providing a unique combination of growth potential and downside protection.