You can have both growth and protection.
If you’re looking to protect your retirement savings from market loss and still want the potential to increase your nest egg, consider Growth Pathway® Fixed Index Annuity. It offers both downside protection and upside opportunity and can be a smart choice as part of your financial strategy.
With Growth Pathway®, you can choose to invest your money in one or a combination of index strategies. The money you allocate has the potential to grow based on the underlying performance of your chosen indexes, measured from the beginning to the end of your 1-year term. This is called “point-to-point” crediting.
If your chosen indexes rise, your account is credited with interest that represents a portion of the gain. If the index falls, you will not receive any interest—but neither will you sustain any loss. Instead, any earnings from the previous year are “locked in” and protected.
Index account options
And for many investors, the “downs” can cause angst and uncertainty. To avoid losing money, they may shift their investments away from equities and into fixed income products like bank CDs and Treasury bonds. But when interest rates are low for extended periods—like the past 10 years—the return on these products can also be low. This creates a dilemma—having to choose between protecting your money or trying to grow it.
Growth Pathway® provides you the peace of mind that comes with downside protection. When markets perform poorly, you won’t lose any of your payments or credited interest, regardless of the index strategies and crediting options you choose. When markets perform well, you will have the opportunity, each year, to lock in the gains in your annuity.
How it works
The example below shows how a Growth Pathway® fixed index annuity can lock in account value gains during up markets and protect your account value during down markets.
#1: Upside opportunity: When markets perform well, you will have the opportunity, each year, to lock in the gains in your annuity.
#2: Downside protection: When markets perform poorly, you won’t lose any of your payments or credited interest, regardless of the index strategies and crediting options you choose.
#3: Peace of mind: You benefit from the security that comes with experiencing a more stable, predictable investment experience.
This chart is a representation of fixed index annuity growth under varying market/index conditions and is not meant to represent the performance of any Delaware Life fixed index annuity product. This chart assumes no fees, charges, or withdrawals are taken from the FIA during the illustrated period and reinvestment of dividends is not included. The hypothetical performance of the fixed index annuity, as illustrated, assumes a $100,000 initial payment, a cap of 5.0% (using the One-Year Point-to-Point with Cap crediting option only) and assumes no withdrawals or surrender charges during period shown. Different index-based strategies and interest crediting options may produce different results. The amount of index interest credited at the end of the term year may be limited by index caps, spreads, PT Interest Rates, or a participation rate. Guarantees are backed by the financial strength and claims-paying ability of Delaware Life Insurance Company (Waltham, MA).
Growth Pathway® includes, at no additional cost to you, the Guaranteed Minimum Account Value (GMAV) feature. If your annuity’s account value has not grown by a minimum amount, GMAV ensures you’ll receive a minimum percentage of credited interest after your annuity’s 5-year or 7-year surrender period ends. Here’s how it works:
- 5-year surrender period: GMAV guarantees that your annuity’s account value will be at least 115% of the initial premium, less any withdrawals, at the 5th anniversary.
- 7-year surrender period: GMAV guarantees that your annuity’s account value will be at least 115% of the initial premium, less any withdrawals, at the 7th anniversary.
Occasionally, unexpected situations arise where you may need access to your money. If that happens, you have options.
Take withdrawals from your account value
Free withdrawals—you can take 10% of the total purchase payments during the first contract year. After the first contract year, you may take 10% of the last contract anniversary value. Both options are free of surrender charges and any applicable Market Value Adjustment. You have full access to the account value in your annuity after five or seven years, depending on which product you choose.
Partial or full withdrawals—you have the flexibility, should you need it, to take more than your free withdrawal amount. If you elect to withdraw more, please note that surrender charges and a Market Value Adjustment (MVA) may apply.
Turn your annuity into an income stream
You also have the option to annuitize your contract. Growth Pathway® offers several options to provide you with guaranteed income for you, or you and your spouse. Please refer to page 10 for more details.
Required Minimum Distributions (RMDs)
If you are required to take a RMD starting at age 72, and that RMD is more than your 10% free withdrawal, you may take the entire RMD without a surrender charge.
You may make full or partial withdrawals from your annuity without a surrender charge or market value adjustment if the renewal cap rate for the S&P 500® 1-year point-to-point with cap index strategy falls below the bailout cap rate