BUILDING THE BRIDGE WITH THE EARLY INCOME FEATURE Nassau Income Accelerator can support a strategy to delay claims on retirement income sources with the optional Flex-Forward Income Benefit rider. Designed to help you bridge the gap until you claim these benefits, this rider is customizable to your specific income requirements and timeline.
THE FLEX-FORWARD INCOME BENEFIT: TWO INCOME FEATURES
EARLY INCOME FEATURE
LIFETIME INCOME FEATURE
INCOME BRIDGE: ENHANCED EARLY INCOME When you exercise this rider, you choose the Early Income Amount you will receive, and select the Early
LIFETIME INCOME: STEADY INCOME FOR LATER YEARS When the
Early Income Period ends, your guaranteed income payments will continue for the rest of your life at a Lifetime Income Amount.
Income Period up to 8 years.
EXAMPLE – EXERCISING THE FLEX-FORWARD INCOME BENEFIT RIDER: Tim purchases Nassau Income Accelerator with the Flex-Forward Income Benefit. He decides to claim Social Security at age 67 and exercise the rider at age 64, electing to receive the Early Income Amount for three years.
Annual Income
EARLY INCOME AMOUNT: $26,479 Tim’s Early Income Amount guarantees higher annual annuity income payments for 3 years so that he can delay claiming Social Security
$40,000
$35,000
$30,000
$13,913
$13,913
$13,913
$25,000
$20,000
benefits until age 67. LIFETIME INCOME AMOUNT: $13,913
$15,000
$10,000
After the Early Income Period ends, annuity payments shift to a lower guaranteed lifetime income payment.
$26,479
$21,060
$21,060
$21,060
$5,000
$0
64-67
67
70
100
Social Security ABA If Claimed at 67
Early Income Amount
Lifetime Income Amount
This hypothetical example is meant only to demonstrate how the Flex-Forward Income Benefit rider’s Early Income Amount and Lifetime Income Amount features work. Assumes $200,000 premium, single benefit option, rider purchased at age 62 and rider exercise at age 64, an Early Income Period of three years, and Lifetime Income Amount thereafter. Example assumes no prior withdrawals and does not reflect any applicable rider fees. Actual benefits and rider payments will vary. Average Social Security Benefits for age 64, 67 and 70 assume a 12/1/1961 date of birth; $0 earnings in 2023; and $60,000 of earnings in 2022 and no cost-of-living adjustments. Age 64 Social Security benefit assumes payments begin 12/1/2025. SOCIAL SECURITY: A $4,212 RAISE Tim’s Social Security benefit, if delayed until age 67, will be higher than it would have been if benefits were claimed at age 64. His annual income from Social Security and Nassau Income Accelerator combined would be $34,973 beginning at age 67.
If you exercise your rider and start taking Early Income Amount payments before the youngest Covered Person turns 59½, you may be subject to tax penalties. Please be sure to discuss your situation with your tax advisor prior to exercising your rider.
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