Boost income with annual raise

Boost income with annual raise

The first check is the worst check

When your work life ends and retirement begins, raises go away. Unfortunately, medical and cost-of-living expenses are likely to keep increasing. The optional Ion GLWB riders can help alleviate this worry by guaranteeing* that once income1 starts, it will increase by 3%2 each year. This means that once withdrawals begin, the first check is the worst check.

In the example3 below, the contract starts at $100,000 and withdrawals begin at age 70. The Ion income withdrawal rate is 5%. This rate may be lower than some other available retirement products, but because the dollar amount increases annually, an Ion eventually surpasses those higher income rates.


Age 5% Ion annual income 5.5% Income rate ($5,500 annual income) 6% Income rate ($6,000 annual income)
70 $5,000 $5,500 $6,000
71 $5,150 $5,500 $6,000
72 $5,300 $5,500 $6,000
73 $5,450 $5,500 $6,000
74 $5,600 $5,500 $6,000
At age 74, the annual Ion income surpasses the $5,500 annual income.
75 $5,750 $5,500 $6,000
76 $5,900 $5,500 $6,000
77 $6,050 $5,500 $6,000
At age 77, the annual Ion income surpasses the $6,000 annual income.
78 $6,200 $5,500 $6,000
79 $6,350 $5,500 $6,000
80 $6,500 $5,500 $6,000
Years 81-84
85 $7,250 $5,500 $6,000
At age 85, the annual Ion income has an advantage of at least $1,250.

In this scenario, here’s how pronounced the ONdex income advantage becomes over a 25 year period.

5% Ion cumulative income rate 5% cumulative income rate 5.5% cumulative income rate 6% cumulative income rate
$178,750 $125,000 (Cumulative income difference of $53,750) $137,500 (Cumulative income difference of $41,250) $150,000 (Cumulative income
difference of $28,750)

Contact your financial professional to learn how an Ion GLWB rider could make your first check your worst check.

Annual income rates

Age Single life Joint life
59 1/2-64 4.00% 3.50%
65-69 4.50% 4.00%
70-74 5.00% 4.50%
75-79 5.50% 5.00%
80-84 6.00% 5.50%
85+ 6.50% 6.00%

Income rates are based upon the age of the first withdrawal after age 59½. Annuitant’s age is used for the Single Life version, or the youngest Participating Spouse’s age for the Joint Life version. The Rider value is not available as a cash option and is used solely for the purpose of calculating
GLWB payments. It does not provide a Contract Value or guarantee performance of any investment option.

The rider’s annual cost is based upon the age at the time of issue. For the single life version, the annuitant’s age determines the cost. For the joint life version, the age of the younger spouse determines the cost. The annual cost can increase on any anniversary after the second. The increase can be declined, but doing so may reduce income for future years by up to 1%.

Annual cost

Age at issue Annual charge (% of the rider’s value)
50-59 1.15%
60-69 0.95%
70-80 0.75%

Issue Age: 50-80 for Annuitant (Single life); 50-80 for both Participating Spouses (Joint life).

Fixed indexed annuities (“FIA”) are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Upon retirement, FIAs may provide an income stream or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining Contract Value.

An FIA is not a registered security or stock market investment and does not allow direct participation in any stock or equity investments, or index. The index used is a price index that tracks market performance and does not reflect dividends paid on the underlying stocks. Indices are typically unmanaged and are not available for direct investment.

FIAs provide the potential for interest to be credited to the annuity, based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuation because of a contractual floor.

Product, product features and rider availability vary by state. Certain features may vary by agency or broker-dealer. Issuer not licensed to conduct business in New York.

Early withdrawals or surrenders may be subject to surrender charges. Withdrawals are also subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. Tax rules require that withdrawals be taken first from any unrealized gain in the contract. Federal and state tax laws applicable to this product are subject to change. You are encouraged to consult your personal tax adviser for further information.

There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified retirement plans because such retirement plans already have tax-deferred status. An annuity should only be purchased in an IRA or qualified plan if you value some of the other features of the annuity
and are willing to incur any additional costs associated with the annuity.

*Guarantees are based upon the claims-paying ability of The Ohio National Life Insurance Company.
Guarantees do not apply to the investment performance of any chosen index.

1 Income means: (1) during the accumulation phase, the amount you withdraw from your annuity in a contract year; (2) during the Lifetime Annuity Period, the amount you receive in annuity payments each year.

2 As a percentage of the initial rider value. The amount to which percentages are applied will be adjusted for step-ups or excess withdrawals. No additional increases will be applied to the rider’s value once the contract’s value is reduced to $0 or after the Index Anniversary
immediately following the Annuitant’s 95th birthday.

3 This hypothetical example is for illustration purposes only and is not representative of any future performance of any particular product. Hypothetical Illustration may not be used to predict or project investment results.



Fixed indexed annuity issuer:
The Ohio National Life Insurance Company
One Financial Way | Cincinnati, Ohio 45242
513.794.6100 |

Form 9295 Rev. 9-22 © 2022 Ohio National Financial Services, Inc.