What will we cover in this review?In this review, we will go over how the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit can help to secure ongoing income in retirement, including:
- What it is
- How it works
- Where it works best
- Where it may not work well
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.Today, as the Baby Boomer generation makes it way towards retirement, it is estimated that roughly 10,000 people turn age 65 each and every day. This large wave of people has already started to put a tremendous strain on programs like Medicare and Social Security – which can lead to additional concerns, such as ensuring that income from savings and / or other sources continues to flow in for as long as it is needed. Years ago, when most people only lived for a few years after retiring, the money that was received from pensions, Social Security, and personal funds was typically more than enough to live comfortably. Now, however, it isn’t uncommon for people to live for 20, 30, or more years after saying good bye to their employer (and their steady paycheck). If you’ve been searching for a way to make sure that you have income in retirement that will last as long as you need it to, then you may have considered the addition of a living benefits rider such as the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit.
Retirement Income Planning Information that You Can TrustIf this is the first time that you have visited the Annuity Gator website, then please allow us to officially welcome you here. We are a team of annuity experts who are focused on offering you the most comprehensive, and non-biased, retirement income product reviews. We have been doing this for many years now – and because of that, we have also become a highly trusted source of financial and retirement income information online. We feel that it is important to know the good, as well as the bad and the ugly before you put your hard earned money into any financial product. That being said, this product review is here to help you with obtaining a better understanding of the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit. So, if you’re ready to get started, let’s jump in!
Opening Thoughts on the Securian Life MyPath Ascend 2.0Since 1880, Securian Financial Group and its affiliates – including Minnesota Life – have provided financial security for individuals and business through insurance, investments, and retirement plans. Now one of the nation’s largest financial services providers, it is the holding company parent of a group of companies that offer a broad range of financial services. Securian Financial’s insurance company affiliates – Minnesota Life Insurance Company and Securian Life Insurance Company – have very high ratings from the independent ratings agencies that analyze the financial soundness and claims paying ability of insurance companies. These include a(n):
- A+ (Superior) from A.M. Best
- AA (Very Strong) from Fitch Ratings
- Aa3 (Excellent) from Moody’s Investor Service
- AA- (Very Strong) from Standard & Poor’s
What is the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit?MyPath Lifetime Income is actually one of the products available through a suite of optional living benefits that may be added to Securian Variable Annuities. These options are available – at an additional premium cost – with the MultiOption variable annuity that is offered through Securian Financial. The MyPath Ascend 2.0 offers accelerated enhancement growth for those who are preparing for retirement. (Other products in this suite of optional offerings include the MyPath Core Flex, the MyPath Value, and the MyPath Summit – which offers greater withdrawal percentages for those who are nearing retirement).
Before we get into the gritty details, here are some necessary legal disclosures…This is an independent product review. It is not a recommendation to purchase or to sell an annuity and / or optional living benefits. Neither Securian nor Minnesota Life Insurance Company have endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant solely to be an independent review at the request of our readers so that they may see out perspective when breaking down the positives and the negatives of this particular annuity living benefits rider. Before purchasing any type of insurance and / or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this product review are the property of their respective owners.
How the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit WorksIf you’re familiar with variable annuities, then you know that these financial vehicles can help you to achieve market-linked returns – and they can do so on a tax-deferred basis. This means that there is no tax due on the gain in the contract until the time of withdrawal (which in many cases, could be years down the road). But by and large, many people purchase annuities for the income that they can provide. So, if you own – or are considering the purchase of – the MultiOption variable annuity that is offered through Securian Financial, the MyPath optional lifetime income benefit could be beneficial for helping you to sustain future income…income that is guaranteed to last for as long as you should need it. By adding this benefit, you can continue to receive guaranteed income that will never decrease solely due to a market downturn. And, you can also continue to receive withdrawals, regardless of the value of your annuity – even if it falls to zero. Here’s how it works: Your initial purchase payment is used for establishing a Benefit Base. The Benefit Base is separate from your annuity’s contract value, and may grow over time as you make additional purchase payments or experience growth in your investments. This Benefit Base is a component in establishing your guaranteed annual income, which is calculated as a percentage of your Benefit Base. This guaranteed annual income is guaranteed to never decrease, provided that you do not withdraw more than the guaranteed annual income in any given year. And, the guaranteed annual income an go up – even after withdrawals begin – through a variety of features that can help you with growing your guaranteed income. The MyPath Ascend 2.0 also offers a Benefit Base reset during periods of strong market conditions. If your annuity’s contract value at your contract anniversary is greater than your current Benefit Base (after any applicable Benefit Base Enhancement), a reset automatically locks those market gains into your Benefit Base – even if you have already begun to take withdrawals.
Growth During Strong Market PerformanceThe Ascend 2.0 also offers an added opportunity via a Benefit Base Enhancement. This Enhancement can help your Benefit Base to grow in any year that you have not taken a withdrawal during the Enhancement Period (in this case, 12 years). In addition, the MyPath Ascend 2.0 offers guaranteed income growth – even in years of poor market performance. Here, the 200% Benefit Base Guarantee allows you to at least double your initial Benefit Base, if no withdrawals have been taken for the twelve years after purchase (or if later, the anniversary following the 67th birthday of the youngest designated life on the annuity). You will retain the highest Benefit Base achieved through either resets or enhancements, or through the 200% Benefit Base Guarantee. So, provided that you do not take any withdrawals, your 200% Benefit Base Guarantee will equal:
200% of the initial Benefit Base and additional first-year purchase payments + 100% of purchase payments thereafter
In order to view more in-depth details regarding the MyPath Ascend 2.0 Lifetime Income Benefit from Securian, you can check out the product brochure HERE.
Are there Any Fees Associated with this Lifetime Income Benefit?
There are fees levied if you want to add the MyPath Ascend 2.0 Lifetime Income Benefit to your MultiOption variable annuity from Securian Life. In addition, there are also charges that may be associated with the MultiOption variable annuity.
For example, these could include deferred sales charges for early withdrawals, and additional expenses, such as mortality and expense risk, administrative fees, and investment management fees.
Plus, if you access your funds before you turn age 59 ½, you could also incur an additional 10% IRS “early withdrawal” penalty. With that in mind, it is important that you carefully read over the prospectus that is associated with this annuity.
For more details, you can view the product’s “fine print” on page 20 of the MyPath Lifetime Income brochure.
Who Should Consider Adding the MyPath Ascend 2.0 Lifetime Income Benefit to Their Securian Variable Annuity?
While this benefit might not be right for everyone, it could be a good option if you are concerned about running out of income in the future. That’s because not only will the Ascend 2.0 keep your future income safe in any market condition, but this benefit also guarantees that you won’t run out of income, even if you have used up all the funds in your annuity contract.
The Annuity Gator’s End Take on the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit
Where it works best:
You may want to consider the MyPath Ascend 2.0 Lifetime Income Benefit if you:
- Own, or plan to own, MultiOption variable annuity that is offered through Securian Financial
- Are looking for a way to attain guaranteed income for life – regardless of how long that may be
Where it may not work so well:
This benefit may not be a consideration if you:
- Do not, or do not plan to purchase, the MultiOption variable annuity that is offered via Securian Financial
- Do not plan to use the income option on the associated annuity
Do You Still Have Questions Regarding the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit?
Even after you have read through this review, you might still have some questions and / or concerns about the Securian Life MyPath Ascend 2.0 Lifetime Income Benefit, and whether or not it could be a good option for you.
If that is the case, please feel free to reach out to us via our secure contact form here. Our team of annuity geeks is ready to help you with better understanding your future retirement savings and income alternatives.
Best,The Annuity Gator