Principal debuts annuity with sustainability index
Principal Financial Group has introduced its first registered index-linked annuity (RILA) called Principal Strategic Outcomes. The launch aims to meet the increasing demand for annuity options amid market uncertainty and the desire to mitigate investment risk among individuals nearing retirement. The total industry sales of RILAs reached a record $41.1 billion in 2022 due to market volatility and inflation pressures. Principal Strategic Outcomes offers investment options for customers to manage market fluctuations and includes a climate-focused sustainability index, the Societe Generale Smart Climate Index, among its offerings. The annuity is designed to provide an income stream in retirement while promoting environmental stewardship. Principal’s survey revealed that 66% of investors prioritize protecting savings and maximizing gains.