First of Its Kind Solution Helps Americans Meet Retirement Income Needs by Joining Target Date Fund Investing with Protected Lifetime Income

Lincoln Financial Group (NYSE: LNC) and Capital Group, home of American Funds, are partnering to help investors prepare for income in retirement with the launch of the new American Legacy Target Date Income variable annuity, the first-ever protected lifetime income solution with access to a target date series. This unique solution combines the features and benefits of an annuity with the simplicity and efficiency of a target date fund.

“Our 30-year partnership with American Funds has always leveraged the strengths of two industry leaders, combining superior asset management with innovative retirement income protection,” says Will Fuller, executive vice president, president of Annuities, Lincoln Financial Distributors and Lincoln Financial Network. “Today, we are announcing American Funds target date investing with Lincoln’s protected lifetime income solution to help investors fund the life they desire in retirement when facing increasingly longer lifespans.”

Research shows that nearly two-thirds of Americans have no guaranteed source of retirement income other than Social Security¹, and that three out of every four Americans like the idea of purchasing an annuity with benefits that guarantees lifetime income for themselves and their families².

Additionally, target date mutual fund assets currently exceed $2 trillion³ as investors have become more familiar with their benefits and employers make them increasingly available within retirement plans. However, target date funds alone are still exposed to market risk. By including Capital Group’s American Funds Target Date series strategy within Lincoln Financial Group’s new variable annuity solution, customers can realize the benefits of glidepath investing, while also receiving protected lifetime income at a high income rate.

“Our partnership with Lincoln Financial Group allows us to combine the experience of our portfolio managers and strong results with reliable protected income in retirement, and was a natural next step in our 30-year long relationship,” says Matt O’Connor, chairman and chief executive officer of American Funds Distributors. “This product innovation will help investors across America prepare for and lead the life they want in their later years.”

In 1987, Capital Group and Lincoln Financial forged a relationship to create the American Legacy variable annuity, the only annuity in the industry offering access to all of the American Funds Insurance Series (AFIS) funds. Today, there is an increasing demand for simplified and tailored investing and American Funds is an experienced provider of these types of solutions with their fast-growing American Funds target date series.