The Variable Income Plan is a settlement option available from the Northwestern Mutual Select Variable Annuity. The Variable Income Plan has the same competitive expenses and investment choices as the Select Variable Annuity (except for the Guaranteed Interest Funds), so it gives you an opportunity to engage the skills of a select team of professional money managers. With the Variable Income Plan, you control where your money is invested by choosing from a select group of stock, bond, and money market funds.
Your total account value is converted into a fixed number of annuity units, based on the value of the underlying investment option at that time. Once this conversion takes place, you will have the same number of annuity units as long as you continue to receive income (assuming that you don't change investment options). The value of the units, and therefore, the amount of cash you receive, will increase or decrease based on the performance of the underlying investment options in relation to a bench mark return. Any change, up or down, will affect the amount of income you receive.
To help address longer life expectancies, increasing health care costs, questions about Social Security or the effects of inflation on future retirement dollars, individuals may need to consider some other additional sources for their retirement income.
A variable income plan may provide some growth potential to your retirement income over your lifetime. However, with this income potential there will be fluctuations in the monthly income. Are you comfortable with the potential market risk with a variable income plan? Will a variable income plan or a combination of a fixed and variable income plans be a comfortable fit for you and your retirement goals?
If you are looking for an inflation hedge and are willing to accept some fluctuation in your monthly income, consider the Variable Income Plan. The benefit: it may provide the potential for your income to increase over time.
Northwestern Mutual has diversified its annuity products through affiliations with quality subsidiaries and sub-advisers, giving you an opportunity to engage the skills of a select team of professionals with extensive experience and expertise in money management.
The Variable Income Plan brings together complementary fund choices and investment approaches that can help you diversify your assets and achieve your goals. Those choices include:
- Fixed, Bond, Equity, International, Emerging Market, and Real Estate Funds
- Hybrid and Specialty Funds
- Active and Passive (Index) Management
- Value, Growth, and Blend Styles
- Small, Medium, and Large Capitalization
Our solid investment options are offered through:
Learn more about the investment options.
The investment return and principal value of a fund will fluctuate so that the accumulation value at maturity or surrender can be more or less than the original amount.
Similar to the Select Variable Annuity, we offer you a choice in contract design. Northwestern Mutual recognizes the value you place on investing for retirement on your terms. The Variable Income Plan is available for purchase in a front load or back load design.
When you're ready to begin receiving income from your variable annuity, you have several options to choose from to help meet your income needs. Your Northwestern Mutual financial representative can review your options.
Read more about your income plan options.
Any annuity income plan is only as good as the insurer that issues it. Payments under an annuity income plan are solely backed by the issuer, making the issuer's financial strength an important consideration. With the Variable Income Plan, you'll gain the financial strength and stability of Northwestern Mutual, one of the most respected insurance companies in operation today. Founded in 1857, Northwestern Mutual has the financial strength ratings awarded to any life insurer by all four of the major credit rating agencies.
Third-party ratings are a measure of a company's relative financial strength and security, but are no reflection on the performance of the variable funds. The performance of variable funds is not guaranteed and can fluctuate so that the value of your contract can be more or less than your original investment. Third-party ratings are subject to change.
Variable annuities are offered and sold by prospectus only. Carefully consider the investment objectives, risks, expenses and charges of the investment company before investing. Your Northwestern Mutual financial representative can provide you with a contract, a fund prospectus or offering circular that will contain the information noted above, and other important information that you should read carefully before you invest or send money.