Plan for retirement confidently with
income for life
Whether your retirement is in the distant future or just over the horizon, the steps you take today can help you achieve financial security you can feel confident in for the rest of your life.
Traditional target date funds (TDFs) are a great strategy to help you build your savings leading up to retirement. But until recently they weren’t designed to provide you with guaranteed lifetime income once you retire. That’s why the NCIT American Funds Lifetime Income Builder Target Date Series (the Investment) is designed to help optimize your growth potential and, when the time comes, generate guaranteed income.
How do TDFs work?
A TDF can take the guesswork out of investing by automatically diversifying and adjusting the allocation of your portfolio over time, in an effort to optimize returns and reduce risk over time based on your estimated retirement date.
Automatic investment rebalancing
Example is provided for illustrative purposes. Does not depict actual portfolio allocations.
Investment at a glance
Case Study: Carlos
Carlos enrolls in the Investment at age 35 and is automatically placed in the target date fund that projects he will reach his target retirement date at age 65. Here’s a look at how this Investment can help benefit Carlos in three easy phases.
Grow
Carlos’s account benefits from greater equity exposure earlier in his career and is automatically
adjusted to reduce risk over time.
Protect
At age 50, Carlos’s future income is protected. Even though the market — and his account value — declined right before retirement, his income benefit is still based on the locked-in value (called an income base)
Retire
Carlos receives 6% annual income for many years, beginning at the target date. Eventually, his account value depletes to zero and his income benefit adjusts from 6% to 4.5% of the greatest locked-in value. He receives this annual income for the rest of his life.
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 investors may lose money. This illustration does not reflect fees.
How it works
The Investment provides access to a diversified portfolio of professionally managed holdings and is designed to help generate growth and provide lifetime income. Around age 50, it begins to allocate to Lifetime Income Builder — a group fixed annuity (FIA) with a guaranteed lifetime withdrawal benefit that helps to build and protect future income. You simply decide how much to contribute. The Investment does the rest.
A simple, three-phased approach
Grow
- An emphasis is placed on equities during early saving years to help optimize growth opportunity.
- Automatic rebalancing gradually shifts some assets from more aggressive to more conservative allocations.
Protect
- While maintaining growth opportunity, the investment starts providing income guarantees by allocating a portion of assets to Lifetime Income Builder around age 50
- This secures your future income base—the value used to calculate your lifetime income.
- At the end of each quarter, if investment gains result in a new maximum value, it is locked into your projected income base.
- This increases your expected income base and protects your future lifetime income amount from market declines.
Retire
- At the target date, the Investment automatically generates 6% of your income base as income annually.
- Income is deposited into a retirement fund that you can access at any point.1
- You maintain the flexibility to defer distributions to a later date or reallocate to another in-plan investment option.
- If the equity portion of the TDF ever reaches zero, the annual income benefit will adjust from 6% to 4.5% of your income base and is guaranteed for the rest of your life.
Lifetime Income Builder
Equities
Fixed Income
Not all target date funds are created equal
Growth opportunity starts with a strong foundation of quality underlying funds – the building blocks to securing your financial future. The underlying equity and bond investment holdings are actively managed by American Funds, whose experienced investment professionals are focused on performance.
90+
year history
of investment experience ²
10+ underlying
funds
hand-selected by Nationwide and
actively managed 3
65 portfolio
managers
who average 27 years
of industry experience 3
Guarantees backed by the strength of Nationwide
You can retire with confidence, knowing your guaranteed lifetime income is backed by Nationwide, a U.S.-based company with a strong and stable financial foundation rooted in asset management and disciplined investing. Nationwide invests in a broad range of quality securities spread across various industries, geographies and markets to maintain the capital and liquidity required to fulfill its financial obligations and help you protect what’s most important to you and your family.
A+
A.M. Best
Affirmed 11/7/24
A+
Standard & Poor’s
Affirmed 4/30/24
A+
Moody’s
Affirmed 11/10/23
These ratings and rankings reflect rating agency assessment of the financial strength and claims-paying ability of Nationwide Life Insurance Company. Because the dates are only updated when there’s a change in the rating, the dates above reflect the most recent ratings we have received. They are subject to change at any time. All guarantees are backed by the claims-paying ability of the issuing carrier, and other restrictions and limitations may apply.
Ready to take advantage of a solution that can help support you up to
and all the way through your retirement years?
1Assets in your retirement fund are not subject to income taxes until withdrawn from the plan as permitted by plan provisions.
2As of December 31, 2023.
3Underlying funds in the Investment as of December 31, 2023. The number of portfolio managers for the underlying funds in the Investment are as of the most recent prospectuses available December 31, 2023. Any manager serving on multiple underlying funds was counted once. Years of experience as of December 31, 2023. Managers and underlying funds may change.
This material is not a recommendation to buy, sell, hold or rollover any asset, adopt a financial strategy or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. Clients should work with their financial professional to discuss their specific situation.
The Nationwide Collective Investment Trust (“NCIT”) is a bank-sponsored collective investment trust (“CIT”) and not a mutual fund. The NCIT is composed of individual collective funds including the NCIT American Funds Lifetime Income Builder Series (“Series”) of target date funds (“Funds”). Because the CIT is not registered with or required to file prospectuses or registration statements with the SEC or any other regulatory body, neither one is available. Investors should consult the Offering Memorandum for the Series and carefully consider the investment objectives, risk, charges, and expenses of the Funds before investing. It is possible to lose money by investing in the CIT. Global Trust Company (“GTC”), a Maine Chartered Non-depository Trust Bank, is the CIT Trustee and maintains ultimate fiduciary authority over the management of, and investments made in, the CIT. Nationwide Fund Advisors (“NFA”) is an investment advisor to the Series. The CIT is exempt from registration under the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended. Neither NFA, nor the Trustee, has any obligation to update this summary. This summary has not been approved by the Securities and Exchange Commission or any other federal or state regulatory agency or foreign securities commission. For further information, qualified plan participants should consult their plan sponsors.
Participation in collective investment funds is limited to qualified defined contribution plans and certain state or local government plans and is not available to IRAs, health and welfare plans, certain Keogh plans, or the general public. Collective funds may be suitable investments for participants seeking to construct a well-diversified retirement savings program, but diversification does not assure a profit, nor does it protect against loss of principal. This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional. This Series is not available in all states.
Target Date Funds are designed to provide diversification across a variety of asset classes, primarily by investing in underlying funds. In addition to the expenses of the Funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds. Each Fund is subject to different levels of risk based on the types and sizes of its underlying asset class allocations and its allocation strategy. Although 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.
Each Fund in the series invests primarily in underlying funds and one of two group annuity contracts issued by Nationwide Life Insurance Company (“Nationwide”), an affiliate of NFA. All contractual guarantees are backed solely by the claims-paying ability of Nationwide. Any participant withdrawals (other than the guaranteed income payments) or loans (if the plan allows) from the Funds will decrease the value used to calculate the guaranteed lifetime income benefit and will therefore reduce future guaranteed income payments. Capital Group manages the underlying American Funds, but the underlying funds and their allocations in the Investment are determined by NFA, subject to the approval of the Trustee.
Key Risks: Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. Each Fund’s underlying funds may be subject to specific investment risks, including but not limited to: stock market risk (equity securities); default risk and interest rate risk (bonds); currency fluctuations, political risks, differences in accounting and limited availability of information (international securities); and derivatives risk (many derivatives create investment leverage and are highly volatile). Please refer to the most recent Offering Memorandum for a more detailed explanation of the Fund’s principal risks. There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved or that a diversified portfolio will produce better results than a non-diversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
Nationwide; Capital Group, home of American Funds; and Global Trust Company are separate and non-affiliated companies.
The third-party marks and logos listed are the intellectual property of each respective entity and its affiliates.
Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. ©2025 Nationwide
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