An easy investment solution already available in your plan that prioritizes growth and helps secure your retirement with a lifetime of income.

While lifespans continue to increase, retirement income needs to last just as long. Lifetime income solutions can increase confidence that you won’t outlive your savings.

In the chart below, you will see how this investment provides growth opportunity and generates income that is protected for life.

one-investment-infographic

Hypothetical example for illustrative purposes only. The graph above is intended for informational purposes only and does not depict the actual performance of the Investment. It is not an indication or guarantee of future performance or results, which may be lower or higher than those shown. Share prices and returns will vary and savers may lose money. This illustration does not reflect fees.

Optimize growth

Contributions with a greater investment in equities early on transition over time to reduce risk as you near retirement.

Capture gains

Around age 47, if the investment grows, gains are locked-in at each quarter-end1 to help preserve the value of your future retirement income.

Generate income

Future monthly income is protected from market drops and lasts a lifetime.

When you’re ready to start protecting your future retirement income:

1

Log in to your plan and select Manage account

2

Go to Change Investments

3

Choose how you’d like to contribute to State Street GTC Retirement Income Builder Series

State Street GTC Retirement Income Builder Series FAQs

Why would a new lifetime income investment be of interest to me?
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This target date series is an easy and automatic solution that supports you for life. It is designed to provide growth opportunity leading up to retirement, while also helping to build a consistent lifetime income stream to support you throughout your entire retirement.

This investment is offered within your retirement plan, making it easy to contribute in a variety of ways:

  • All or part of your current investment can be reallocated; there is no minimum purchase amount.
  • You can make ongoing contributions from your paycheck.
  • You can transfer other eligible qualified retirement savings to your Nationwide Retirement plan and allocate the assets to this investment if you choose.
Once you select this investment solution, there is nothing more you need to do. The hard work of managing the underlying investments is handled for you by State Street Global Advisors, a leading asset manager, and then the investment automatically creates a lifetime income stream, paid each month for the rest of your life. You can monitor the investment just as you would any other investment.
At approximately age 65, lifetime income payments begin. Lifetime income payments will be placed into an in-plan retirement fund automatically on a monthly basis. At any time, you may choose to take action to reallocate the income to another plan investment option or take distributions. Please note, taking distributions is a taxable event and is an action that is initiated by you.

How is this investment designed to protect lifetime income?
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While maintaining growth opportunity, starting around age 47, the investment begins to lock-in your future income benefit:

  • This establishes your projected income base — the value used to calculate your lifetime income.
  • On the last business day of each calendar quarter and the last business day of the month prior to income activation, if investment gains result in a new maximum value, this is the value used to determine your new projected income base.
  • The greater income base increases your expected future income benefit, and it is protected from market declines.
  • And additional contributions increase your projected income base too (minus withdrawals)!
Lifetime income will be calculated based on the highest locked-in value of the target date fund (TDF).1 Quarterly lock-ins are captured between ~age 47 and the target date. From the target date forward, a target of 6% annually based on that highest value will be paid into the in-plan retirement fund. If the equity portion of the fund ever reaches zero, the annual future income benefit will adjust from a target of 6% to 4.5% of your income base and continues for life.2
Economic conditions may change over time, impacting how investments perform, which means the income rates could be set higher or lower at the target date. If investment growth and your contributions result in a higher value, that growth is locked in and used as the income base at the target date. After looking at 1,000 different scenarios, based on the highest locked-in value, it’s been found that 99% of the time the annual income would have been at least 6% or higher at the target date.3
If you have chosen a beneficiary for your plan’s investments, the full participant account value will be paid to the beneficiary upon the death of the participant.

The investment may offer a joint income option, so you may have the choice to generate income for the lives of both you and your legal spouse. Under the joint income option, the future income benefit amount will be reduced, and will vary depending on the age differential between the participant and the joint beneficiary, as follows:

  • Joint Beneficiary Age Differential ≤ 10 years: 90%
  • Joint Beneficiary Age Differential > 10 years: 80%

This choice must be elected during an election period. This period runs for approximately 2 months, ending 10 business days prior to the target date. This election is irrevocable, even in the case of divorce. The reduced payments will be paid to the participant and/or the joint beneficiary until the death of both the participant and joint beneficiary. Any remaining investment balance will be paid to the participant’s beneficiary upon the death of the participant or the spouse’s beneficiary as applicable if the joint income option was elected.

Other details
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The investment is available for all ages. However, the lifetime income benefit is available only if you have started making contributions to the investment by approximately age 62. Individuals beyond that age threshold will be placed in a target date fund that does not provide a lifetime income benefit.
Over the life of the investment, the net expense ratio will range from 0.09% when assets are allocated to traditional equity and fixed-income holdings to 0.20% when income distributions begin (expenses as of May 2024). Please refer to the offering memorandum for more details on fees and expenses.

You can make changes at any time. The investment is fully liquid with no holding periods, and there are no termination fees or transfer fees for withdrawals or reallocations. Partial exchanges out of the investment and into another investment will decrease the amount on which your lifetime income benefit will be calculated and lessen your overall income benefit. A full exchange out of the investment will forfeit your lifetime income benefit.

Should you change employers or if your current employer removes the Investment from the plan lineup, you may be able to roll over your balance to another retirement plan that offers the Investment, or to an IRA product that offers an income guarantee. Any rollover solution, whether or not it offers a guaranteed income option, may have different investments, fees and features. Rollover options are subject to the provisions of the plan document.

There are no annual contribution limits to the investment beyond the annual IRS limits for all retirement plans, but there are a few other restrictions:

  • There is a $7.5 million limit on total contributions, including any rollovers or transfers into your plan account.
  • Contributions are restricted at income activation, or the target date. 

Income: At the target date, the investment automatically generates a target of 6% of your income base as annual income. If the equity portion of the fund ever reaches zero, the annual income benefit will adjust from 6% to 4.5% (targeted)2 of your income base and will continue for the rest of your life.

Returns: Your account will continue to be invested and earn returns based on the fund's performance, which may be more or less than the income amount.

Additional resources

All guarantees are subject to the claims-paying ability of the issuing insurance companies. 

[1] The per unit value of the fund is measured on the last business day of each calendar quarter and on the last business day of the month prior to income activation, and then the highest measured value is locked in. The high-water mark is not measured until the fund begins to allocate to the fixed indexed annuity.
[2] 6% and 4.5% are targeted percentages and there is no assurance that the funds will be able to make payments that meet either targeted percentage. Actual percentages may vary. See detailed disclaimers regarding actual percentages. See additional disclaimers in the Offering Memorandum for important risk information.
[3] Hypothetical scenario provided by Advantage Retirement Solutions, LLC, the inventor of Lifetime Income Builder, for illustrative purposes only. This study is assuming an expected 6% long-term equity return and 2% bond return. Changes in these assumptions may have a material impact on the hypothetical scenarios. See additional disclaimers in the Offering Memorandum for important risk information.

For complete product information, including investment risks, charges, fees and expenses, and how the product may operate within your retirement plan, please consult the Offering Memorandum for State Street GTC Retirement Income Builder Series.  

Investing involves risk, including the risk of loss of principal. Such activities may not be suitable for everyone.

Each target date fund in the series is established by Global Trust Company and held in the GTC Retirement Income Builder Collective Investment Trust (the “Trust”). The Trust is a bank-sponsored collective investment trust and not a mutual fund. Global Trust Company serves as trustee of the Trust,  manages the Trust,  and has ultimate investment authority for each fund in the Series. State Street Global Advisors manages a portion of the solution’s underlying assets and provides Global Trust Company with glide path recommendations for the funds within the Series. 

Lifetime Income Builder is a group fixed indexed annuity with a guaranteed lifetime withdrawal benefit (a “FIA”). Each TDF may invest in more than one FIA, collectively which are referred to throughout this presentation as “Lifetime Income Builder.” Advantage Retirement Solutions, LLC is the inventor of Lifetime Income Builder. The FIA guarantees are made to the trustee of the TDF, not to the participants. Participants are not beneficiaries of any annuity contract. Lifetime Income Builder is not provided by or guaranteed by Global Trust Company, State Street Global Advisors, Advantage Retirement Solutions, LLC or any of their affiliates.

Each fund is designed to provide participants target annual income of 6% at income activation and a target minimum lifetime income percentage of 4.5%. The target percentages are goals and there is no assurance that the funds will be able to make payments that meet either target percentage. All income payments to participants, regardless of the percentage, are always dependent on the trustee.

The funds invest in FIAs that are intended to back the Trust’s investment objectives, lifetime income. Each FIA is issued by an insurance company to the trustee. The FIAs provide guaranteed payments to the Trust and are subject to the claims-paying ability of the issuing insurance companies. If the value of the non-FIA investments in the fund reaches zero at or after income activation, income payments are adjusted to the cumulative guaranteed percentage provided to the Trust by the FIAs, which is targeted by the trustee of the fund to be the target minimum lifetime income percentage of 4.5%. The actual annual income percentage and actual minimum lifetime income percentage are dependent on economic factors and may be more or less than what is targeted. There are possible, but extreme, market conditions where the FIAs’ cumulative guaranteed percentage that is provided to the Trust could be less than 4.5%. Therefore, we use the term “target minimum lifetime income percentage” to properly reflect the potential for such scenario.  In that scenario, the FIAs would still provide guaranteed payments to the Trust, but it would be something less than the targeted minimum of 4.5%, and payment of income to the participants would remain dependent on the trustee.

If a participant selects the joint income option offered by the fund, the actual payment percentages will be less than 6% and 4.5%, but instead of income payments terminating upon the death of the participant, income payments will continue to be made to the joint beneficiary if the joint beneficiary outlives the participant.

Current target annual income and target minimum lifetime income percentages reflect economic conditions at the time each fund is created. Future funds in the series could have lower or higher targeted percentages based on economic conditions at the time of the fund’s creation. Please refer to the Offering Memorandum for more information on the risks of not receiving income payments.

The funds are designed for investors expecting a stream of income around the year indicated in each fund’s name.  When choosing whether to invest in the fund for which an investor’s age qualifies, investors should consider whether they anticipate a need for an income stream significantly earlier or later than age 65. There may be other considerations relevant to determining whether investment in the fund best meets their individual circumstances and investment goals. The funds’ asset allocation strategy becomes increasingly conservative as it approaches the target date and beyond. The investment risks of each fund change over time as its asset allocation changes.

An investment in a fund is not a bank deposit and is not insured or guaranteed by the insurance companies, the trustee, State Street Global Advisors, the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. The Trust is not insured by the FDIC and is not registered with the Securities and Exchange Commission.

Each FIA is issued by an insurance company to the trustee.  The FIAs do not create any third-party beneficiary relationships or third-party beneficiary rights for any other person or entity. The insurers do not guarantee that participants will receive lifetime income.

The information provided herein does not constitute investment advice and it should not be relied on as such.  It should not be considered a solicitation to buy or an offer to sell a security or a product, or a recommendation of the suitability of any investment strategy for a particular investor. It does not take into account any investor’s particular objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

State Street Global Advisors makes no representation or warranty as to the current accuracy, reliability or completeness of the information contained herein and assumes no liability for decisions based on such information. Further, third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to use of such data.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without State Street Global Advisors’ express written consent.

The entities reflected here have collaborated together to bring this solution to market; none of the collaborating listed entities are affiliated entities.

© 2024 State Street Corporation.

All Rights Reserved.

Information Classification: General Access

7406528.2.1.AM.RTL

Exp. Date: 11/30/2025