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Your retirement income made simple

American Legacy® Target Date Income variable annuity

How it works

Protected income percentages by age threshold 5.25% at age 65; 5.30% at age 67; 5.40% at age 70; 5.60% at age 72
Want the most protected income for life?
We have that.

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Select a profile to see how American Legacy®​ Target Date Income simplifies retirement income planning with a powerful combination of target date investing and protected lifetime payments.

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It’s important to know your investing style, risk profile, time frame and goals. Talk with your financial professional to create a plan that works best for you. 

Target date series from an industry leader

  • American Legacy Target Date Income is the only variable annuity to offer access to the American Funds Insurance Series® — Target Date Series.
  • It’s designed to help you simplify managing your investment while giving you access to highly regarded funds.

 

Take a closer look at the funds with the core fund guide (PDF) .

 

A Highly regarded fund family

Icon graphic for Capital Group and American Funds

Capital Group is:

•  One of the largest target date fund providers,1 with $226B in assets
    under management.2
•  The fastest-growing retirement target date fund family (mutual
    funds and CITs combined).3

 
A well designed glide path

Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors’ retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin making withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.


Distinguishing characteristics of the glide path
  • Managed for approximately 30 years past retirement so investors could feasibly use a single fund for decades.
  • Meaningful equity exposure throughout retirement to help manage the risk of outliving savings.
  • Emphasizes dividends with the intent of providing more equity exposure without increasing volatility.

You should carefully consider the target fund you select. Generally, investors pick a fund with the year closest to the date on which they plan to retire. A 45-year-old investor who wishes to retire at age 65 might choose a target date fund with a date close to 20 years in the future. Similarly, a 55-year-old planning to retire at age 70 might choose a fund with a date around 15 years in the future. To provide protected lifetime income benefits, Lincoln may limit access to some funds that investors normally may have selected to match their retirement date.

Chart showing diversification shift from growth to income as the consumer gets closer to retirement

The target allocations shown are as of May 27, 2021, and are subject to the oversight committee's discretion. The investment adviser anticipates assets will be invested within a range that deviates no more than 10% above or below the allocations shown in the prospectus/characteristics statement. Underlying funds may be added or removed during the year. Visit capitalgroup.com/afis for current allocations.

 

American Funds Insurance Series – Target Date Series

The underlying funds have provided a strong foundation

Chart showing 87 percent outpaced their peers

RESULTS VS. PEERS

Underlying funds have outpaced their respective Lipper peer indexes/averages in 87% of all 10-year rolling annual periods.4

 

Chart showing 84 percent outpaced their benchmark

RESULTS VS. BENCHMARKS

Over their lifetime, 84% of underlying funds have outpaced their respective benchmarks.5

 


1Source: “The Cerulli Report — U.S. Defined Contribution Distribution 2020: Adapting to Changes in the Regulatory Environment.” As of 2019.
2Source: Capital Group, as of 6/30/21. Represents assets across vehicles for the Target Date Retirement Strategy from Capital Group.
3Source: Sway Research, LLC. "The State of the Target-Date Market: 2021." Fastest growth is based on the highest compound annual growth rate of assets under management for mutual funds and CITs combined from year-end 2017 to year-end 2020.
4The underlying American Funds have beaten their Lipper Peer Indexes in 87% of 10-year rolling annual periods through December 31, 2020, based on Class R-6 share results, with underlying fund allocations as of June 30, 2021. Periods covered are the shorter of the fund's lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary.
5Results vs. Benchmarks lifetime results methodology: Based on class R-6 share results through December 31, 2020 and underlying fund allocations as of June 30, 2021. Seventeen out of 17 underlying equity funds had lifetime returns that outpaced their respective benchmarks. Four out of eight underlying fixed-income funds had lifetime returns that outpaced their respective benchmarks.

Past performance is no guarantee of future results.



Important information and disclosures

 

Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative and advisory fees. Optional features are available for an additional charge. The annuity’s value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.

 

Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable prospectuses for the variable annuity and its underlying investment options contain this and other important information. Please call 888-868-2583 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.

 

All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

 

There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.