Principal Financial Group® has launched its first Registered Index-Linked Annuity (RILA), Principal® Strategic Outcomes, to meet the growing demand for annuity solutions as market uncertainty persists and as individuals nearing retirement seek help mitigating investment risk. Recent market volatility and inflation pressures pushed total industry RILA sales to a record $41.1 billion in 2022.
“Sustained market uncertainty has investors thinking about their asset allocation mix which, along with volatile equity markets, has triggered movement to solutions that help individuals build retirement savings while managing their risk tolerance,” said Sri Reddy, senior vice president for Retirement and Income Solutions at Principal. “As a leader in guaranteed income solutions, we built our RILA to help investors more confidently navigate diverse market conditions and stay invested as they strive for the best outcomes possible for their retirement.”
Principal® Strategic Outcomes is available through financial professionals to help customers manage market ups and downs through investment options that offer choice and personalization. To provide additional customization, the RILA solution includes a climate-focused, sustainability index – the Societe Generale (SG) Smart Climate Index – as one of four indices available.
Offered alongside the S&P 500®, Russell 2000®, and MSCI EAFE, the SG Smart Climate Index utilizes technology models from Entelligent to calculate an “E-Score” estimating the investor return sensitivity of companies to future climate change scenarios. The index investment universe consists of stocks from the S&P 500® that uphold the Ten Principles of the United Nations Global Compact without being linked to controversial incidents, products, and/or business activities.
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