Voya Financial Offers New Lifetime Income Strategy for Customers of Large 401(k) Plans


WINDSOR, Conn., Feb. 10, 2015 /PRNewswire/ -- Voya Financial, Inc. (NYSE: VOYA), announced today that its Retirement Solutions business has added a new retirement income investment option to its recordkeeping platform.  Designed by AB (AllianceBernstein), the Lifetime Income Strategy is available for 401(k) plan participants of large employers.  The age-based, asset allocation program is designed to help participants convert their savings over time into a stream of guaranteed income that lasts throughout retirement. 

"We know Americans are shouldering more responsibility for generating their own income once they leave the workforce, and many are uncertain about how to address this very important aspect of retirement planning," said Rich Linton, president of Large Corporate and Individual Markets for Retirement Solutions at Voya Financial.  "The availability of the Lifetime Income Strategy for our larger plan sponsor clients underscores Voya's commitment to providing meaningful solutions that can help guide Americans on their journey towards greater retirement security." 

The Lifetime Income Strategy provides participants with a personalized asset allocation strategy that helps build critical retirement savings, followed by an income benefit for life, guaranteed by multiple insurers.  The program leverages the expertise of AB's multi-insurer platform, while incorporating both guaranteed and non-guaranteed components into one consolidated program.  Investors benefit by having a single, integrated solution with several different insurance companies splitting the responsibility under the contracts.  This diversifies risk and helps participants receive competitive payouts.1

Other important benefits and features of the Lifetime Income Strategy include the following:

  • Fiduciary Protection:  AB assumes the role of fiduciary, including taking on full responsibility for the selection of the multiple insurers who provide the guaranteed income component.  This eliminates the fiduciary responsibility for plan sponsors to select and monitor the insurers.
  • Investment Flexibility:  Investments for the non-guaranteed component are customizable.  Plan sponsors can choose to utilize their current investment option lineup and the program is designed for use as a qualified default investment alternative (QDIA).
  • Upside Potential, Downside Protection:  The program allows for income growth potential from market gains as well as income protection against market losses through a guaranteed lifetime withdrawal benefit (GLWB).  This feature provides participants with a stream of guaranteed retirement income for life.
  • Participant Unique Glide Path:  Investors can select the age they plan to retire and adjust over time their desired level of income protection, if necessary, based on their unique situation.  These personalization features help improve participant engagement, while creating an individualized glide path designed to best meet investors' needs.
  • Individual Control:  Participants have the ability to withdraw their assets or transfer to other investment options at their convenience — giving them full control while in the program including in retirement.

"We understand employees need the option of secure retirement income from their workplace savings plan.  We are pleased to be a part of the solution and to offer our Lifetime Income Strategy, through Voya's premier network," said Richard Davies, head of AB Defined Contribution.  "By working with Voya, known for its leadership and reach in the retirement space, we will together be able to help employees better navigate the increasing complexity of ensuring they have enough money to live comfortably in retirement."

In fact, as a retirement plan client of Voya, the AB 401(k) plan has recently adopted the Lifetime Income Strategy as its qualified default investment alternative (QDIA). 

The Lifetime Income Strategy complements Voya's comprehensive investment capabilities, retirement solutions and expertise. This includes an array of target date funds and custom target date solutions, and reliable and research-driven investment strategies across multi-asset, equities and fixed income asset classes.  The company also offers the Voya Lifetime Income Protection program, which is an in-plan, minimum guaranteed withdrawal benefits program available for 401(k) participants of small and mid-sized employers. These services are managed by Voya's asset manager, Voya Investment Management, which manages more than $200 billion and has over 40 years of history in the industry.

As an industry leader and advocate for greater retirement readiness, Voya Financial is committed to delivering on its vision to be America's Retirement CompanyTM and its mission to make a secure financial future possible — one person, one family, one institution at a time. 

Media Contact:
Joe Loparco
Voya Financial
Office:  (860) 580-2677
Cell:  (860) 462-6525
[email protected]     

About Voya Financial
Voya Financial, Inc. (NYSE: VOYA), is composed of premier retirement, investment and insurance companies serving the financial needs of approximately 13 million individual and institutional customers in the United States. The company's vision is to be America's Retirement Company and its guiding principle is centered on solving the most daunting financial challenge facing Americans today — retirement readiness. Working directly with clients and through a broad group of financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists, Voya provides a comprehensive portfolio of asset accumulation, asset protection and asset distribution products and services. With a dedicated workforce of approximately 6,500 employees, Voya is grounded in a clear mission to make a secure financial future possible — one person, one family, one institution at a time. For more information, visit voya.com or view our Voya Financial Interactive Company Profile. Follow Voya Financial on Facebook and Twitter @Voya.

1 All guarantees under the contracts are subject to certain conditions and limitations and to the claims-paying ability of the issuing insurer. Voya Financial insurance companies do not provide any of the guarantees for the Lifetime Income Strategy program.

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