Equitable Enhances Leading Buffered Annuities as Financial Protection Takes Center Stage in Current Market Environment
Equitable Holdings, Inc. (NYSE: EQH) announced enhancements to its registered index-linked annuity (RILA) products to aid clients in navigating volatile markets and inflation. The Structured Capital Strategies® Income product increased income rates by 25 basis points, addressing a decline in the equity market by 20% and high inflation. Additionally, the SCS PLUS RILA is now available in New York, extending access to more clients. These updates aim to provide clients with income and growth opportunities while mitigating equity market risks.
- Increased income rates by 25 bps for Structured Capital Strategies® Income.
- Extended availability of SCS PLUS RILA to financial professionals in New York.
- None.
Equitable’s Structured Capital Strategies® Income (SCS Income), launched in
In addition, both commission and fee-based versions of Equitable’s Structured Capital Strategies® PLUS (SCS PLUS) RILA are also now available in
“Clients are experiencing the perfect storm — a volatile equity market, inflation higher than we’ve seen in four decades, rising interest rates, and fixed income markets that are not providing the investment diversification they once did,” said
Equitable created Structured Capital Strategies®, the first registered index-linked, or buffered, annuity in 2010.
RILA products such as SCS PLUS can offer clients who are reaching retirement age partial protection from the sequence of return risk associated with a correction or bear market. Recent research shows investors value mitigating risk to their retirement income. In a 2021 study from
The opportunity for partial downside protection can also be an ideal portfolio asset for consideration by affluent clients who see the possibility for tax increases on the horizon. Annuities are one type of financial product that can offer tax-deferred accumulation and tax-free movement among subaccounts, and annual contributions are rarely capped. These tax advantages can make the product attractive as a wrapper for investments with high asset turnover, such as REITS and aggressive growth funds.
The latest updates to the Structured Capital Strategies® variable annuity suite follow updates made earlier this year to Equitable’s Investment Edge® investment only variable annuity. Investment Edge updates included the addition of 20 structured investment option segments that provide partial downside protection from equity market losses and upside potential up to a cap — similar to those available in the Structured Capital Strategies® suite of variable annuities — and asset allocation options based on model portfolio strategies for moderate growth and growth risk profiles that give clients access to popular investment choices in a tax-deferred format.
About Structured Capital Strategies®
Through the Structured Capital Strategies® suite of products, clients can participate in one of several mainstream equity market indices up to a cap, with a buffer protecting against the first -
The Dual Direction feature available in some of the suite’s SCS offerings allows clients to earn a positive return even if the S&P 500 declines. It does this by crediting a return equal to the percentage of the decline up to, or equal to, the amount of the buffer (-
Structured Capital Strategies® Income adds two innovative ways to create guaranteed income in retirement, including the ability to start receiving income immediately from a registered index-linked annuity, a level income option which provides an income rate initially based on age at the time of purchase and that does not decrease, and an accelerated income option, which provides a higher rate of income in early retirement when individuals may have higher expenses.
About Equitable
Equitable, a principal franchise of
Registered index-linked annuities (RILA) include a partial protection feature that eliminates a portion of the contract holder’s downside risk, while still giving the contract holder the opportunity to invest for growth up to a cap. Through the partial protection feature, the buffer will absorb the loss up to the buffer selected. However, there is risk of substantial loss of principal because the investor agrees to absorb all losses that exceed the protection provided. An annuity is a long-term financial product designed for retirement purposes. Simply stated, an annuity is a contract between the contract holder and a life insurance company that lets the contract holder pursue the accumulation of assets through equities and other investment options. The contract holder may then take payments or a lump sum amount at a later date. There are fees and charges associated with variable annuities, which contain certain restrictions and limitations and are subject to market risk including loss of principal. All contract and rider guarantee are backed by the claims-paying ability of the issuing life insurance company. It is not possible to invest directly in an index.
Variable and registered index-linked annuities are offered by prospectus, which contains detailed information about the contract and its charges, risks, expenses, and investment objectives. Prospective contract holders should read the prospectus and consider this information carefully before purchasing a contract or sending money.
This informational article is not intended and should not be construed or relied upon as financial, insurance or investment advice. Equitable is the brand name of the retirement and protection subsidiaries of
i https://www.morningstar.com/articles/1115886/q3-2022-market-performance-in-charts
ii https://ycharts.com/indicators/us_inflation_rate
View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005772/en/
Media:
Abby Aylman Cohen
(212) 314-2010
mediarelations@equitable.com
Source: Equitable
FAQ
What updates did Equitable make to its RILA products?
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