2614268_1

Filed Electronically 

April 27, 2010 

Office of Regulations and Interpretations 

Employee Benefits Security Administration 

Room N-5655 

U.S. Department of Labor 

200 Constitution Avenue N.W. 

Washington, D.C. 20210 

Attn: Lifetime Income RFI 

Re: Request for Information Regarding Lifetime Income Options for Participants and 

Beneficiaries in Retirement Plans [RIN 1210-AB33] 

Ladies and Gentlemen: 

The Hartford Financial Services Group, Inc. (NYSE: HIG) (“The Hartford”) appreciates the 

opportunity to comment in response to the request for information (“RFI”) by the Department of 

Labor (“DOL”) and the Department of the Treasury (“Treasury”) (collectively, the “Agencies”) 

regarding lifetime income options for participants and beneficiaries in retirement plans. We 

commend the Agencies for undertaking this effort to learn more about guaranteed lifetime 

income products, and for their willingness to consider possible rulemaking to facilitate their use. 

In this comment letter, we will provide our perspective on recent trends in retirement saving and 

planning, and on the various impediments to broader usage of guaranteed lifetime income 

products. We will also describe our recent efforts to address some of those impediments, and 

offer some recommendations as to what the Agencies can do to help. 

Founded in 1810, The Hartford is one of the largest investment and insurance companies based 

in the United States. A Fortune 100 Company, The Hartford is a leading provider of investment 

products – annuities, mutual funds, college savings plans – as well as life insurance, group and 

employee benefits, automobile and homeowners’ insurance, and business insurance. The 

Hartford serves millions of customers worldwide – including individuals, institutions, and 

businesses – through independent agents and brokers, financial institutions, and online services. 

After 200 years in business, The Hartford is known for its financial strength and stability, superior 

customer service, and continued operational excellence. 

Jason Berkowitz 

Director and Counsel 

Regulatory Affairs 

Hartford Life Insurance Company

200 Hopmeadow Street 

Simsbury, CT 06089 

860-323-2182 

860-843-6958 

Mailing Address: P.O. Box 2999 

Hartford, CT 06104-2999 
2614268_1 2 

The Hartford’s retirement plans business is a recognized industry leading service provider, with 40 

years of experience with defined contribution plans. We offer 401(k) plans for small and midsized corporate customers, 457 plans for government entities, and 403(b) plans for education, 

healthcare and other not-for-profit providers. We support over 30,000 plans and 1.5 million 

participants, with over $49.5 billion in retirement plan assets under management or 

administration as of December 31, 2009. Given our extensive experience in developing lifetime 

income product solutions and providing record keeping services, The Hartford is uniquely 

positioned to offer a holistic view of this evolving market. 

The Hartford is a member of the American Council of Life Insurers, the Insured Retirement 

Institute, the Committee of Annuity Insurers, Americans for Secure Retirement and the SPARK 

Institute. We participated in the preparation of the comment letters being submitted by these 

organizations, and generally support their recommendations. In addition, we respectfully offer 

the following comments. 

Recent Trends in Retirement Saving and Planning 

With the decline in the number of defined benefit (“DB”) plans offered today (and in many 

cases, a decrease in the benefits provided by remaining DB plans) and the concern that Social 

Security may not be able to provide the projected benefits in the near future, employees need 

additional sources of guaranteed income to provide for their basic needs in retirement. The 

scope of this problem is evident in the Employee Benefit Research Institute’s (“EBRI”) 2010 

Retirement Confidence Survey, which found that only 29 percent of workers are “very confident 

about having enough money to pay for basic expenses during retirement.”1

Defined contribution (“DC”) plans were originally designed to provide retirement savings to 

supplement Social Security, personal savings and lifetime pension benefits under traditional DB 

plans. Today, DC plans have become the primary employer-sponsored retirement savings 

vehicle for most people. As a result, most Americans are very worried about how they are going 

to fund their retirement, as illustrated by The Hartford’s 2009 Investments and Retirement Survey: 

“Nearly four in five people (78.3 percent) are less than confident that all of their sources for 

retirement income, including employer-sponsored pension plans, government-sponsored 

pension plans and personal savings and assets, will be adequate to maintain their standard of 

living in retirement.” We have attached an overview of this survey for your reference. 

In light of these developments, insurance providers have begun to develop a variety of 

guaranteed lifetime income products specifically designed to help participants create a secure 

retirement from their DC plan assets to supplement or replace the traditional pension2 and other 

sources of guaranteed lifetime income. Unlike other products commonly available to plan 

participants, guaranteed lifetime income products recognize that there are two distinct phases 

in a DC plan: the accumulation phase, in which the focus is on maximizing the total amount of 

retirement savings, and the decumulation phase, in which the focus should shift to finding the 

most effective and efficient way to actually use accumulated savings to fund retirement. 

Historically, DC plan sponsors and participants have primarily focused on accumulation, and 

paid very little attention to the decumulation phase. 

Participants have to contend with many kinds of risk in managing both phases of their retirement 

plan. We developed a brochure, entitled “Riskology”, that explains many of these risks. This 

 

1 A study recently conducted by Hartford and the MIT AgeLab, entitled “Why Women Worry”, highlighted the particular 

challenges faced by women in planning for retirement. The executive summary of this study is attached for your 

reference. 

2 The need to replace traditional pensions may be more widespread than it seems, considering that, according to EBRI’s 

survey, “56 percent of workers expect to receive benefits from a defined benefit plan in retirement, [even though] only 

37 percent report that they and/or their spouse currently have such a benefit with a current or previous employer.” 
2614268_1 3 

brochure is attached for your reference. Certain risks, such as market volatility, are more 

significant during accumulation, while others, such as longevity, inflation and timing, take 

precedence when the participant shifts into the decumulation phase. Guaranteed lifetime 

income products can help participants manage the risks associated with decumulation by 

shifting them to an insurer. 

These products generally fall into three categories, each of which has a place in the retirement 

planning process, depending on the particular situation and needs of each individual: end-ofplan annuities (i.e., annuities offered as a distribution option); out-of-plan annuities purchased 

with amounts withdrawn from the plan (generally in a traditional or Roth IRA); and the newest 

lifetime income innovation, in-plan annuities purchased as an investment option while the 

participant is still an active employee. The Hartford offers products in each of these categories. 

Our end-of-plan products are group fixed income annuities with various annuity payment forms 

available, including lifetime income for a single life or joint lives. Our out-of-plan products include 

fixed accumulation annuities, fixed income annuities, and a recently introduced product that 

combines a variable annuity benefit with a fixed accumulation annuity benefit. Our in-plan 

accumulation option, known as Hartford Lifetime Income, is a group fixed income annuity that is 

purchased on an incremental basis during accumulation, which provides lifetime income for a 

single life or joint lives and a liquidity cash-out feature. The product summary for Hartford Lifetime 

Income is attached for your reference. 

While end-of plan annuities (which can be purchased either through a plan or in an IRA) may be 

the right solution for many participants, they also require employees at retirement to give up a 

large single purchase amount in exchange for a guaranteed lifetime benefit. The single 

purchase nature of the transaction often carries “sticker shock,” which limits utilization. In-plan 

incremental annuities provide an easy, cost effective way for employees to accumulate 

guaranteed retirement income using incremental purchases over time through payroll 

contributions to a DC plan. These in-plan incremental lifetime income products are intended to 

be offered as an additional investment option under the plan and provide significant “dollar 

cost averaging” benefits. They also generally provide a surrender value during the accumulation 

period that can be transferred to other investment options offered under the DC plan. Once a 

participant elects to begin receiving his or her benefit, the in-plan annuity provides guaranteed 

lifetime income payments just like a distribution annuity. 

The market for in-plan accumulation products is still evolving, and no particular type of product 

has emerged as the standard. The product types most commonly available today are: fixed 

deferred payout annuities; variable deferred annuities with guaranteed minimum withdrawal 

benefits or guaranteed minimum income benefits3; and target date funds with either a fixed 

deferred annuity as an allocation in the fund’s glide path or a guaranteed minimum withdrawal 

benefit applicable to all or part of the target date fund. 

We believe that guaranteed lifetime income products should be simple, cost effective, flexible 

and portable. These principles guided us in developing our in-plan incremental fixed payout 

annuity: 

• Simple: The guaranteed income benefit is known at the point of purchase. For example, 

with The Hartford’s product, contributions purchase income shares, each worth $10 of 

monthly lifetime income beginning at age 65 and continuing for life. 

• Cost Effective: In-plan annuities are group products, benefiting from institutional price 

advantages resulting from group mortality and expenses. Also with a fixed annuity, the 

 

3 Since growth and accumulation potential are already available in the existing equity and fixed income options, the 

variable annuity options with guaranteed benefits are, in our view, redundant and may not be appropriate for DC plans. 
2614268_1 4 

cost of providing guaranteed income is built into the purchase price and applies only to 

the amount allocated to the income option. Variable annuities with guaranteed 

minimum benefits typically charge an asset based fee to the entire amount protected 

by the guarantee. 

• Flexible: The primary focus of these products should be longevity protection with a 

certain income stream for life. Participants should buy them for the lifetime benefits they 

provide. However, participants also need the flexibility to re-direct these amounts if their 

circumstances change. Income shares have liquidity, as they can be cashed out at any 

time prior to income payment commencement. Participants also need the flexibility to 

be able to determine when and how they want to receive income as they get closer to 

retirement. With The Hartford’s product, decisions about income start date and payment 

form, including any inflation protection, are made at the point of retirement. 

• Portable: Fixed income annuity benefits are paid up units of future income as opposed to 

accumulation fund units. The Hartford’s product is designed to qualify as a Qualified Plan 

Distributed Annuity (QPDA) and be distributed in kind from the plan in the event of 

termination or retirement. 

The approach of directing contributions specifically to lifetime income (a “pension-like” benefit) 

and accumulation (an “investment account” with growth component for discretionary 

expenses) is simple, straight forward and cost effective. The result is a single plan with both DBlike and DC-like benefits. We believe this is the best way to provide guaranteed lifetime income 

within a DC plan and that any guidance provided by the Agencies should fully support this 

approach. 

Impediments to Broader Usage of Guaranteed Lifetime Income Products 

Unfortunately, most plan sponsors do not include guaranteed lifetime income products in their 

plans, and most plan participants who have access to such products are not appropriately 

utilizing them when planning for retirement. A number of factors have contributed to this lack of 

usage: 

• fiduciary liability concerns; 

• limitations on portability; 

• uncertainty regarding ERISA and tax qualification rules; and 

• insufficient education. 

These issues can best be understood by considering the perspectives of, and challenges faced 

by, plan sponsors and participants: 

Plan sponsors. While plan sponsors want to provide their participants with the tools to create a 

secure retirement, they have been reluctant to add guaranteed lifetime income products to 

their plans because, among other things, they: 

• are unclear about the fiduciary standards to which they will be held when selecting 

annuity providers, and therefore worry about potential fiduciary liability if the provider 

they select experiences financial problems in the future; 
2614268_1 5 

• are concerned about the implications of including a product in their plan that provides 

benefits that may not be portable if there is a change in the plan or in the participant’s 

employment status; 

• do not want to deal with the burdens associated with the tax rules that apply when a 

plan includes an annuity, such as the QJSA and spousal consent rules, and worry that 

any missteps in following these rules could adversely impact the plan’s qualified status; 

and 

• do not fully understand the features and benefits offered by various guaranteed lifetime 

income products and the associated costs. 

Participants. While guaranteed lifetime income products offer significant benefits for 

participants, the lack of utilization can be primarily be attributed to one of the following factors: 

• Most participants do not have access to such products. 

• Of those participants who do have access, most do not have access to the educational 

tools necessary to adequately understand them. 

Recommendations for Addressing the Challenge 

As the Agencies consider how they can help to overcome these obstacles, we offer the 

following general suggestions: 

• The Agencies should focus primarily on facilitating and encouraging – but not 

mandating – the development and usage of guaranteed lifetime income products. 

• The Agencies should provide concrete guidance to address the concerns of plan 

sponsors and participants by providing clarity in some areas and relief in others. Our 

specific recommendations in this regard are described below. 

Fiduciary Liability 

Fiduciary concerns are the most significant obstacle to increased offering of guaranteed lifetime 

income options (i.e., in-plan incremental annuities and end-of-plan distribution annuities) in DC 

plans. Employers are concerned that, before adding a guaranteed lifetime income option, they 

must conduct a detailed review of the insurer’s financial condition and assess whether the 

insurer will be able to meet the long-term obligations under the lifetime benefit. This is an onerous 

task that employers are not well equipped to perform, and which is fraught with potential legal 

liability. By contrast, employers appear very comfortable with the process for selecting other 

plan investment options, such as mutual funds and similar investments. 

There are two specific actions that DOL can take to address these concerns: 

• Address plan sponsors’ concerns regarding the existing safe harbor for the selection of 

end-of-plan distribution annuities under Rule 404a-4 (the “Safe Harbor”); and 

• Provide guidance to clarify how Section 404(c) of ERISA applies to the selection of in-plan 

incremental annuities. 
2614268_1 6 

Selection of End-of-Plan Distribution Annuities

Before offering our suggestions for how to improve the Safe Harbor, we want to acknowledge 

that the Safe Harbor is a substantial improvement over the standard that previously applied to 

the selection of annuity providers. The “safest available annuity” standard, which was derived 

from the standard for DB plan close-out annuities, simply didn’t make sense in the DC plan 

context, and we commend DOL for recognizing that fact. 

Unfortunately, the Safe Harbor has not been widely used by plan sponsors, primarily because of 

the broad, vague requirement that the plan sponsor analyze the financial status of the insurer 

and conclude that the annuity provider is financially able to make all future payments. Given 

the long-term nature of the insurer’s liability (i.e., the participant’s lifetime), this is a serious 

deterrent for plan sponsors. As a result, many plan sponsors are reluctant to even consider 

offering end-of-plan distribution annuities in their plans. 

We believe that plan sponsors would be much more likely to add end-of-plan distribution 

annuities to their plans if the Safe Harbor was amended to relieve plan sponsors of the burden of 

acquiring independent expert knowledge of the financial condition or long-term viability of 

various product providers. Such knowledge is beyond the reasonable capabilities of most 

employers. Instead, the Safe Harbor should apply a straight forward objective standard to the 

selection of the annuity provider. 

Clearly, the Safe Harbor elements relating to the financial status of the insurer are intended to 

protect plan participants from the possibility that an annuity provider will be unable to pay 

claims in the future. We appreciate the Agencies’ concerns, and share their interest in 

protecting participants. However, existing insurance regulation already provides ways to 

determine whether an insurance company will be able to meet their future obligations. The 

licensing process for insurance companies includes detailed rules related to the establishment of 

reserves, valuation of assets and liabilities, risk-based capital requirements, surplus rules, 

requirements that products be approved prior to sale with actuarial justification, and restrictions 

on dividends to holding companies. Insurance regulators also conduct periodic reviews of 

insurance companies to ensure that they remain in compliance with these rules, and can work 

directly with the companies and their senior management to address any specific questions or 

concerns that might arise. 

As such, we believe that the Safe Harbor can be revised to address plan sponsors’ fears about 

potential fiduciary liability without compromising or impairing participant protection. In fact, 

revising the Safe Harbor in the manner we recommend below could actually enhance 

participant protection by clarifying that plan sponsors should consider more than just the annuity 

provider’s future claims-paying ability. After all, many other factors might be relevant to plan 

sponsors, such as the provider’s history and reputation for service, quality and reliability; the 

variety of products offered by the provider; the provider’s experience in the annuity and 

qualified plan businesses; the benefits, features and cost of the annuity; the administrative 

services to be provided under the annuity contract; and the terms, conditions and limitations of 

the annuity contract. 

The Hartford’s Recommendation: DOL should revise the Safe Harbor as follows to provide a more 

straight-forward, objective standard that plan sponsors can use with confidence: 

“ERISA §2550.404a-4(b) Safe harbor. The selection of an annuity provider for 

benefit distributions from an individual account plan satisfies the requirements of 

section 404(a)(1)(B) of ERISA if the fiduciary: 
2614268_1 7 

(1) Engages in an objective, thorough and analytical search for the purpose of 

identifying and selecting providers from which to purchase annuities, and 

appropriately considers publicly available information about the provider, 

which may include: current financial condition; history and reputation for 

service, quality and reliability; variety of product offerings; and experience in 

the annuity and qualified plan businesses; 

(2) Appropriately considers information sufficient to assess the ability of the 

annuity provider to make all future payments under the annuity contract; 

Obtains a certification from the provider stating that the provider is:

(a) licensed and in good standing in the states in which it conducts business;

(b) not currently in rehabilitation, liquidation, insolvency or any similar status; 

and

(c) a member of the insurance guaranty associations in each of the states in 

which it conducts business;

(3) Appropriately considers the benefits, product features and cost (including 

fees and commissions) of the annuity contract, and the in relation to the 

benefits and administrative services to be provided under such contract; 

(4) Appropriately concludes that, at the time of the selection, the annuity 

provider is financially able to make all future payments under the annuity 

contract and the cost of the annuity contract is reasonable in relation to the 

benefits and product features of the annuity contract, and the administrative

services to be provided under the contract; and 

(5) If necessary, consults with an appropriate expert or experts for purposes of 

compliance with the provisions of this paragraph (b). 

Selection of In-Plan Incremental Annuities

While the Safe Harbor only applies to end-of-plan distribution annuities, plan sponsors have 

similar concerns about potential liability with respect to their selection of in-plan incremental 

annuities with lifetime benefits. In this context, the issue is that plan sponsors simply do not know 

what they must do to fulfill their fiduciary duty. 

Many in-plan incremental annuities have a redemption feature that allows participants to 

reallocate their investments from the guaranteed income benefit to other plan investment 

options. In this sense, these in-plan annuities very much resemble traditional investment options 

such as mutual funds. The selection of traditional investment options in a participant-directed DC 

plan is covered by Section 404(c) of ERISA and the regulations promulgated thereunder, and 

given the similarity between the products, we believe it would make sense to apply the same 

fiduciary rules to the selection of in-plan incremental annuities that include redemption features. 

Most employers seem very comfortable with the process for selecting investment options under 

the 404(c) regulations, and we believe that bringing in-plan incremental annuities under the 

same standard would greatly increase plan sponsors’ willingness to offer such products. 

The Hartford’s Recommendation: DOL should clarify that a plan sponsor can satisfy its fiduciary 

obligation with respect to the selection of an in-plan incremental annuity that provides a 

meaningful redemption feature by complying with the 404(c) regulations. 
2614268_1 8 

Portability 

Generally speaking, a participant who purchases an in-plan annuity expects to maintain his or 

her investment until retirement to preserve the desired lifetime income payments. This, of course, 

presumes that the product remains available to the participant until retirement. For a variety of 

reasons, however, this may not always be the case. The plan sponsor could decide to drop the 

product from the plan or switch to a different product, or could switch to a new recordkeeper 

who might be unable or unwilling to offer the same or a similar product. A similar problem would 

arise if the participant terminates employment prior to retirement, particularly where the plan 

does not provide for in-kind distributions. 

Current rules do not provide any mechanism by which the participant could preserve the 

guarantees built into his or her investment. We believe that this lack of portability is a significant 

factor in the general reluctance of plan sponsors and participants to utilize guaranteed lifetime 

income products. 

The Hartford’s Recommendation: Treasury should clarify and expand the rules governing a plan’s 

tax-free distribution of an annuity contract or certificate (sometimes referred to as a “qualified 

plan distributed annuity” or a “QPDA”) to allow plans to issue QPDAs to vested participants even 

if they are not yet eligible to receive a cash distribution from the plan. This would be appropriate, 

given that, upon being distributed to a participant, a QPDA acts as a stand-alone “qualified 

plan” asset held by the plan participant, similar to a §408(b) individual retirement annuity, and is 

required to maintain plan withdrawal restrictions. 

Treasury should also explicitly allow participants to rollover a QPDA into an IRA and, in turn, clarify 

that a QPDA can accept rollover amounts. 

ERISA and Tax Qualification Rules 

Another very significant impediment to greater utilization of guaranteed lifetime income 

products is the considerable uncertainty among plan sponsors and participants regarding the 

application of certain ERISA and tax qualification rules. 

QJSA and Spousal Consent Rules

The qualified joint and survivor annuity (“QJSA”) rules and spousal consent requirements are a 

source of great consternation for both plan sponsors and participants. Under IRC 

§401(a)(11)(B)(iii), the QJSA and spousal consent rules generally apply to a DC plan only when 

the participant elects “to receive payment of plan benefits in the form of a life annuity.” There is 

currently very little guidance on what constitutes an “election” of a life annuity. 

This lack of guidance leaves plan sponsors worried about the serious administrative and 

practical issues that might arise if, for example, they are required to apply these rules to the 

election of an incremental annuity, especially if the participant can later elect out of the option. 

For participants, the concern is that the spousal consent requirement might apply whenever a 

participant allocates any portion of his or her account to any investment with a guaranteed 

lifetime income feature, which could mean that the participant would have to get spousal 

consent for all future investment decisions. 

The Hartford’s Recommendation: Treasury should clarify that only an irrevocable election to 

receive periodic annuity payments would trigger the QJSA and spousal consent rules. For an inplan incremental annuity, this would mean that a participant would be deemed to have 

elected a life annuity only when the investment option is converted to a fully annuitized benefit 

that cannot be redeemed or surrendered. 
2614268_1 9 

We do not believe that this would, in any way, erode or compromise spousal protections, given 

that current law allows DC plan participants to purchase a non-complying annuity through the 

use of a direct rollover or a cash distribution of his or her DC account balance, thereby avoiding 

the QJSA and spousal consent rules. 

Required Minimum Distribution Rules

A participant who chooses a guaranteed lifetime income option must be mindful of the required 

minimum distribution (“RMD”) rules. Unfortunately, these rules are very difficult to understand, 

primarily because there are two separate sets of rules for determining the amount required to be 

distributed from a qualified retirement plan to a participant after he or she attains age 70-1/2 or, 

if later, retires. Which set of rules applies depends on whether the participant’s accrued benefit is 

in the form of an individual account under a DC plan (Reg. section 1.401(a)(9)-5) or annuity-type 

payments under a DB plan (1.401(a)(9)-6). The same bifurcation applies to IRAs for account 

balance plans and annuitized contracts. 

However, almost no guidance has been provided with respect to the application of the RMD 

rules to annuities and other guaranteed lifetime income products with account balances and 

lifetime features, the use of longevity insurance products, and aggregation of Individual 

Retirement Annuities which have been annuitized (payout IRA) and Individual Retirement 

Accounts (including non-annuitized Individual Retirement Annuities with account balances). 

The Hartford’s Recommendation: Treasury should clarify which RMD rules apply to the different 

payout phases of a guaranteed lifetime income product, and the extent to which 

benefits/amounts under an account balance arrangement and annuitized benefits can be 

aggregated, particularly in the IRA context. 

In addition, Treasury should revise the RMD rules, in both the in-plan and out-of-plan contexts, as 

follows: 

• The RMD rules should expressly permit benefits under a distribution/payout annuity 

(subject to the "annuitized benefit” RMD rule) and investments with an account balance 

(subject to the “account balance” RMD rule) to be aggregated for RMD purposes under 

the “account balance” rule, using the fair market value of the payout annuity. 

• Pure longevity annuities (i.e., annuities that offer lifetime payouts starting at an advanced 

age at/near life expectancy) – an important tool that people can use to address what 

many consider their biggest retirement risk, outliving their assets and income sources – 

should be exempted from the RMD rules. This would not be inconsistent with the policy 

underlying the RMD rules because it would not result in hoarding retirement assets for 

one’s heirs instead of using them for retirement needs. On the contrary, it would actually 

encourage participants to use their assets in their retirement planning. 

• The RMD age should be increased to 75 or 80 to permit more flexibility in retirement 

planning. Some participants may only need or want guaranteed lifetime income 

beginning at later ages, but the current rules do not permit this. Raising the RMD age 

would make sense, considering that, since the rule was originally established, life 

expectancy has increased significantly and people have started retiring much later, 

often working well into their 70s. 

Education 

It is not possible to understate the importance of providing plan sponsors and participants with 

straight forward, clear and effective communication and education about their DC plans. The 
2614268_1 10 

Hartford’s commitment to education is well-known in the retirement plan business. Over the past 

three years, we have received 15 independent educational awards for a variety of 

communication projects geared to helping consumers understand and make the most of their 

retirement plan and investments. And we are continually looking for ways to enhance the 

educational process in an effort to ensure that participants have the tools they need to make 

informed decisions. 

With this in mind, we are particularly troubled by the general lack of understanding among 

participants about decumulation and the risk of outliving their assets. For years, the investment 

education materials that participants have been provided focused solely on the need to 

accumulate funds for retirement and how to invest (allocate) their account balance. They have 

received little to no information regarding planning and investing during retirement and/or the 

risks that they face. Unfortunately, employers have shied away from providing information about 

guaranteed lifetime income options because they are not confident that they are allowed to 

use plan assets to pay for such education, and because they are afraid that providing such 

information might be deemed investment advice, specifically when discussing out-of-plan 

guaranteed lifetime income options. 

The Hartford’s Recommendation: DOL should clarify that: 

• Providing education and information regarding retirement planning (including a 

description of the various risks and issues faced during retirement (e.g., longevity, 

inflation, market risk), decumulation of one’s DC plan assets and the advantages and 

disadvantages of guaranteed lifetime income products (both in-plan and out-of-plan) 

does not constitute investment advice; and 

• Plan assets can be used to pay for general education of investment and retirement 

planning during the decumulation phase, including discussion of guaranteed lifetime 

income products available outside the plan. 

* * * * 

We appreciate the opportunity to provide these comments. If you have any questions, please 

do not hesitate to contact the undersigned at 860-323-2182. 

Very truly yours, 

Jason Berkowitz 

Attachments 
2614268_1 11 

Attachments

1. Why Women Worry, Executive Summary 

2. The Hartford’s 2009 Investments and Retirement Survey, Results Overview 

3. Riskology Brochure 

4. Hartford Lifetime Income Product Summary 

On average, women have lower lifetime earnings than 

men due to lower pay, more interrupted work 

histories and more time spent in part-time jobs. 

Women today work on average about twelve years 

less than men.1 Women’s caregiving responsibilities 

(care for their children, older relatives or their spouse) 

are the primary reason for their fewer years in the 

workforce. 

With lower lifetime earnings, women tend to save less 

and, since Social Security and many employer 

retirement benefits are tied to earnings, women end 

up with lower levels of guaranteed retirement income. 

Women’s median income in retirement is only 58 

percent of men’s.2 

Participation rate in pensions or employer sponsored 

retirement plans is 44 percent among working women 

compared to 49 percent among working men.3 

2 

Gender matters in retirement planning. Research from The Hartford and the MIT AgeLab 

shows that women are more concerned than men about retirement risks. When put into a larger economic and demographic context, women have good reason to worry. However, with a skillful and 

knowledgeable advisor guiding them, angst can be turned into action, and women can feel more secure both in the retirement planning stage and once they have retired. 

Women are worried with good reason. In addition to the greater personal responsibility for retirement that all Americans face today, women confront unique challenges while they strive to save for 

retirement, make those savings last throughout their lifetime and protect themselves from major 

events like health problems or widowhood. 

Why Women Worry 

WOMEN’S UNIQUE CHALLENGES 

Compared with men, women will likely have lower retirement savings yet they’ll need to make those savings 

last longer and plan on being on their own at some point in retirement.

44 

32 

MEDIAN YEARS WORKED 

OF WORKERS RETIRING IN 2000 

Men Women

50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

Source: U.S. Bureau of the Census (2003, 2004) and 

U.S. Social Security Administration (2003b). 

SM

Lower Retirement Assets and Income 

Retirement planning has changed. Both the federal government and employers have shifted more 

responsibility for retirement planning, and more risk, to individuals. Starting in the 1980’s, employers made a 

shift away from defined benefit pensions and moved toward defined contribution plans. Legislators have 

decreased the lifetime value of Social Security benefits by raising the age for full benefits and introducing the 

taxation of benefits for some retirees. 

Years

Years
Longer Life Expectancies 

On average, a woman who is age 65 today can 

expect to live to age 85 while a man can expect to 

live to age 82.4 

People tend to think of the average life expectancy 

number as an endpoint and forget there’s a 50 

percent chance that they’ll live longer than the 

average. 

According to the Society of Actuaries 2005 

Retirement Risk Survey, almost two-thirds of people 

underestimate average life expectancy, and about 40 

percent of them are wrong by more than five years.5

Once a woman reaches age 65, she has a 49 percent 

chance of living to age 89 and a 23 percent chance 

of living to 95.6

Life expectancy at age 65 in years 

95 

90 

85 

80 

75 

70 

65 

Source: Society of Actuaries Annuity 2000 Mortality. 

LOTS OF TIME IN RETIREMENT—IF YOU REACH 65 

Male At Least One 

Person in a Marriage 

Female 

More Time as Sole Decision-Maker

In retirement, non-married people often face more 

financial challenges than married people. Of the 

population age 65 and older, 28 percent of single 

women and 23 percent of single men are poor or 

near poor compared with only 8 percent of married 

people in that age group.1 

When a woman outlives her husband, her income 

decreases by 50 percent on average yet expenses 

only decrease by 20 percent.9 In addition, older 

women who live alone are less likely to have a 

family member available to care for them and have 

a higher need for additional financial resources to 

cover long-term care expenses. 

Older women are twice as likely to be single as 

men. Among women age 65 and older, 60 percent 

are single compared to 29 percent of men, and as 

women get older, their probability of being single 

increases.7 Older women are three times more 

likely to be widowed than older men.8 Women 

tend to live longer than men and marry men who 

are older than they are. Also, older women don’t 

tend to re-marry. 

 3

NON-MARRIED WOMEN 

as a percent of total households, aged 65 and over 

70% 

60% 

50% 

40% 

30% 

20% 

10% 

0% 

65-69 70-74 75-79 80-84 85+ 

Source: U.S. Social Security Administration (2002a). 

86 

92 

89 

95 

23% 

Chance 

49% 

Chance 

26% 

Chance 

49% 

Chance 

97 

93 

47% 

Chance 

26% 

Chance 
4 

KEY RESEARCH FINDINGS 

Much has been written about retirement planning, but a gap exists in understanding the emotions people feel 

while they are planning for their retirement. For many people finances are intermingled with emotions and 

fraught with personal connections and feelings. 

In order to understand these connections better, The Hartford and the MIT AgeLab conducted eight focus 

groups with retirees and pre-retirees throughout the U.S. in spring 2007, followed by a national telephone 

survey in fall 2007. Questions focused on people’s perceptions of their retirement risks and their feelings 

about retirement. 

Critical areas that were probed in depth included inflation (both general and health care), money management, 

longevity, physical health and leisure. When the data were analyzed, several key concerns emerged, with some 

interesting gender distinctions.

Women are more worried than men about 

retirement risks. 

Women are more worried than men about all 

of the retirement risks measured, except 

having enough to do in retirement. 

Both women and men are most 

concerned about health inflation, general 

inflation and physical health decline. 

Health inflation: 87 percent of women and 

77 percent of men are either very or 

somewhat concerned that the cost of 

healthcare in retirement will grow faster than 

their income. 

General inflation: 83 percent of women and 

69 percent of men are either very or 

somewhat concerned that the general cost of 

living in retirement will grow faster than their 

income. 

Physical health decline: 75 percent of 

women and 69 percent of men are either very 

or somewhat concerned about a decline in 

health during retirement.

Source: The Hartford and the MIT AgeLab 

Retirement Attitudes Survey, 2007. 

Women 

Not 

Enough 

to Do 

Health 

Inflation 

General 

Inflation 

Physical 

Health 

Decline 

Outlive 

 Your 

Money 

Money 

Mgmt. 

Difficulty 

Men 

0% 20% 40% 60% 80% 100% 

% Very Concerned or Somewhat Concerned 

RETIREMENT CONCERNS BY GENDER 

The Research Showed... 
Longevity: 64 percent of women and 46 percent of 

men are either very or somewhat concerned about 

outliving their money (an 18 percentage point 

difference).

In the focus group interviews conducted by 

The Hartford and the MIT AgeLab, one participant 

said about longevity: “I don’t think it’s important. 

What’s the point in trying to figure out how long 

you’re going to live? No one knows. You have no 

idea how long you’re going to live. I might die 

tomorrow. I might live to be 95 or 100.” 

Yet it is this calculation that is important to 

determining how long people will need to make their 

retirement savings last so that they will not run out of 

money before they run out of living. Women, who 

on average live longer than men, may recognize the 

greater risks they face with regard to longevity. 

Money management: 35.6 percent of women 

and 19.2 percent of men are either very or somewhat 

concerned about having difficulty managing their 

money (a 16.4 percentage point difference). Over 

twice as many women (11.5 percent) as men (5 

percent) say they are very concerned about having 

difficulty managing their money. 

Because women may have fewer retirement resources 

that they may need to stretch over a longer 

retirement – on average smaller 401(k) accounts, 

smaller pensions and lower Social Security income 

relative to men – many women may face a more 

challenging money management task in retirement 

than men.

General inflation: 83 percent of women and 69 

percent of men are either very or somewhat 

concerned about general inflation (a 14 percentage 

point difference). 49 percent of women and 28 

percent of men are very concerned about general 

inflation (a 21 percentage point difference). 

Women and men both expressed a significant degree 

of concern over inflation risk in retirement. 

Women’s higher levels of concern, however, may 

again be related to the higher degree of risk they face 

in retirement. Inflation over time can erode the 

purchasing power of smaller retirement nest eggs that 

may need to last for more years. 

5

“I don’t think it’s important. What’s the 

point in trying to figure out how long you’re 

going to live? No one knows. You have no 

idea how long you’re going to live. I might 

die tomorrow. I might live to be 95 or 100.” 

— Focus group participant

The greatest disparity between women’s and men’s concerns is around financial matters – outliving 

their money, managing their money and the rising cost of living. The differences reflect women’s 

higher levels of concern about the greater risks they face in retirement. 
6 

Taking the Worry Out of Retirement

Aging is a woman’s world. Women are likely to outlive men, remain active longer and be responsible for 

caring for their spouse and others. Plus, women often need to stretch smaller savings over longer 

lifetimes. So it makes sense that women are more worried than men about finances in retirement. The good 

news is that an adequate level of worry can help motivate women to plan for their future. By taking some 

basic steps such as those outlined above and working with a qualified financial professional, women can turn 

their angst into action and take a lot of the worry out of retirement. 

D Start Early

Women need to start retirement savings early in 

their careers. Since women spend fewer years in 

the workforce than men, getting an early start on 

retirement saving is essential to longer term fiscal 

health. 

D Actively Participate

Women who are married should not ignore 

retirement planning or leave it totally to their 

spouse. Women have different concerns about 

their retirement years that may not be properly 

addressed if they do not participate in the 

planning. 

D Invest in Health

Physical wellness is a valuable financial strategy. 

Women who invest in a healthy life style can 

enjoy better health and lower medical expenses 

for decades. 

D Estimate Life Expectancy

Most people underestimate their life expectancy. 

This mistake can put women at risk for not 

saving enough money for retirement. Women 

should do a longevity estimate and add a few 

years to create even more financial security. 

D Have a Balanced Plan

Women need to make a retirement plan that 

includes: guaranteed sources of income (Social 

Security, pensions, annuities), growth 

investments that keep up with inflation, and 

insurance to protect against significant losses 

(life, disability and long-term care insurance). 

D Consult an Expert

If a woman feels she lacks the knowledge or 

confidence to do her own planning, she can 

benefit from working with a trusted advisor. 

PRACTICAL TIPS TO MOVE FROM ANGST TO ACTION 

“I became a widow and I didn’t know anything about finances and so I educated myself. I 

became a member of the American Association of Independent Investors. I went to 

classes. I learned what I thought I should know and I worked with professionals to plan. To 

learn about what I should consider, what I would need when I retire. And that was a very 

good thing that I did because I took over everything that I had to do and I think I made 

pretty good decisions.” 

– Focus group participant
ABOUT THE SURVEY 

To be eligible for inclusion in the survey, 

individuals had to meet the following three criteria: 

• Between the ages of 45 and 74; 

• English speaking and living in continental U.S.; 

• Have some personal savings for retirement. 

Personal savings for retirement could include 

money saved in an account like a 401(k) or 403(b) 

or in any kind of IRA. Individuals who reported 

that they did not have any personal savings for 

retirement, outside of Social Security or a pension, 

were not included in the sample. The sample was 

stratified by age. Respondents were asked: 

How concerned are you that in retirement... 

• You will outlive your money 

• The cost of living will grow faster than your 

income 

• The cost of health care will grow faster than 

your income 

• Your physical health will decline 

• You will not have enough to do in 

retirement 

• You will have difficulty managing your 

money 

The response choices were: 

{ Very concerned 

{ Somewhat concerned 

{ Not too concerned 

{ Not at all concerned 

{ Don’t know 

{ Refused 

The survey data are weighted. The data weights 

were created based on 2006 U.S. Census estimates 

for age. Thus, the weighted data are representative 

of Americans ages 45 to 74 who have some 

personal savings for retirement. Roughly 60 percent 

of the final weighted sample were women and 40 

percent were men. 

The survey questionnaire was fielded between 

November 28 and December 21, 2007. The 

interviews were completed in this period with 1,194 

eligible respondents. 

7

REFERENCES

1. Munnell, Alicia H. (April 2004) 

Why are so many older women poor? 

Center for Retirement Research at Boston 

College 

2. Hounsell, Cindy (2008) 

The Female Factor,

Women’s Institute for a Secure Retirement 

3. Congressional Research Service (2004) 

Pension Sponsorship and Participation

4. U.S. Social Security Administration (2003c) 

The 2003 Annual Report of the Board of 

Trustees of the Federal Old-Age 

and Survivors Insurance and Disability 

Insurance Trust Funds, Washington D.C.: 

U.S. Government Printing Office 

5. Society of Actuaries, 

2005 Retirement Risk Survey

6. Society of Actuaries Annuity 2000 Mortality 

Tables

7. U.S. Social Security Administration 2002 (2000) 

Income of the Aged Chartbook,

Washington, D.C.: U.S. Government Printing 

Office 

8. U.S. Census Bureau (2003) 

9. MarketFacts Quarterly (Fall 2006) LIMRA 
AgeLab, Massachusetts Institute of Technology 

77 Massachusetts Avenue, Room E40-279 

Cambridge, MA 02139-4307 

Phone: 1-617-253-0753 Fax: 1-617-258-7570 

Email: agelab-www@mit.edu 

Website: http://web.mit.edu/agelab/ 

The Hartford Financial Services Group, Inc. 

One Hartford Plaza 

Hartford, CT 06155 

Phone: 1-860-547-5000 

Website: http://www.thehartford.com 

 

Copyright © 2008, by MIT AgeLab. All rights reserved. The MIT AgeLab is not an affiliate or subsidiary of The Hartford. 

The Hartford is one of the few companies in the United States with in-house experts on business and aging. 

For over 23 years, The Hartford has employed gerontologists to work across the company’s insurance and 

investment business lines to help develop industry leading programs and services for the mature market. This 

group of nine experts is called the Advance 50 Team. 

The Hartford has enjoyed a research collaboration with the MIT AgeLab since 1999, when MIT started 

working with the company’s property and casualty division. In 2006, this partnership was extended to 

The Hartford’s retirement initiative. The purpose of the collaboration is to gain greater insight and 

understanding into the challenges facing Americans as they age, and to apply this understanding to the 

delivery of financial planning products and services to meet the needs of its customers. The AgeLab’s 

multi-disciplinary team has developed unique methods, facilities and data that place it at the forefront of 

innovation in transportation, health and wellness, aging and longevity planning. The AgeLab’s Internet 

address is http://web.mit.edu/agelab. 

“Why Women Worry” is part of a series of retirement-related research findings being published by 

The Hartford and the MIT AgeLab. The series began in February 2008 with the “Power of Two” findings 

on issues around couples, communication and financial planning.

ABOUT THE HARTFORD AND THE MIT AGELAB 

The Hartford, a Fortune 100 company, is one of the nation’s largest financial services and insurance 

companies, with 2007 revenues of $25.9 billion. The Hartford is a leading provider of investment products, 

life insurance and group benefits; automobile and homeowners products; and business and property and 

casualty insurance. International operations are located in Japan, the United Kingdom, Canada, Brazil and 

Ireland. The Hartford’s Internet address is www.thehartford.com. 
The Hartford Investments and Retirement Survey

Resea

r

ch Detail

s

a

n

d Results

O

v

ervi

e

w

Copyright © 2009 by The Hartford. Confidential. For internal distribution only. 

All rights reserved. No part of this document may be reproduced, published or posted without the permission 

esea c eta s a d esu ts O e e

November 2009 November 2009
The Hartford Investments and Retirement Survey

Background/Objective:The Hartford is interested in better understanding the retirement needs, concerns and pconsumers in the United States, particularly those ages 45 and older 

Methodology:Sample Size andComposition: Men and women ages 45 and older, who are United States 

residents and who are responsible for making financial decisresidents, and who are responsible for making financial decis

households.

United States: 751 men and women ages 45 and older

Ages: 45-54 34 2%.

55-64 33.4%65+ 32.4%

Annual Income: More than 

$ , 100 000 10.8%

$50,000-$100,000 33.8%Less than $50,000 47.8%Declined/No answer 7.6%

Total QualifiedCompletes: 751 total respondentsMargin Of Error: +/- 3.5%
Summary - Key Findings

Visions of Retirement Grow BleakerThe turmoil and subsequent meltdown of the global financial markets during the last yprofound impact on how Americans view their financial picture, particularly when it complanning America planning. America s’ confidence about its financial wherewithal continues to decline an

confidence about its financial wherewithal continues to decline an

optimism about the shared future known as “retirement.”The overwhelming majority of Americans continue to accept that they and they alone aresponsible for their financial security and comfort in retirement. The knowledge is be

burden to bear as Baby Boomers fret about a lack of financial acumen a want of safetburden to bear as Baby Boomers fret about a lack of financial acumen, a want of safet

waning financial power to live comfortably in retirement or, increasingly, the inability to goal.The Hartford’s 2009 Investment and Retirement Survey, conducted in the U.S. previou

Hartford Hartford s’ International Retirement Survey identifie International Retirement Survey, identified growing concerns about financia

growing concerns about financia

ability to find the path to financial security in retirement:• The No. 1 financial concern in retirement – simply meeting every day expenses – d

concerns. Keeping up with daily expenses for food, shelter and other basis needs concerns. Keeping up with daily expenses for food, shelter and other basis needs 

65.2 percent. In 2008, 49.7 percent identified meeting daily expenses as their top fretirement, doubling from 24.5 percent in 2007.

– The prospect of enjoying life in retirement appears to grow ever more elusive fo

The goal of enjoyment declined to 14.4 percent in 2009 from 26.2 percent in 20

g jy p

percent in 2007.
Summary - Key Findings

– Health care was the third biggest concern, with 14 percent identifying the afforda

care or long-term care for themselves or their spouse as their No. 1 financial cardeclined somewhat from 15.9 percent in 2008, perhaps because of the recent C

debate over government mandates for health insurance coverage debate over government mandates for health insurance coverage.

• Confidence in employer-sponsored pension plans plummeted. More than one-third 

respondents (34.4 percent) said they were “not at all confident” that the income from sponsored pension plan would be guaranteed for as long as they lived in retiremen

– Fully 45.4 percent were either “not too confident” or “not at all confident.”– In the previous three years, the highest response rate for “not at all confident” wa

the highest total for “not too confident” or “not at all confident” was 15.1 percent 

• The correction of the financial markets, despite a pronounced rebound during the s

fall, has created uncertainty over the future. Nearly a third of all respondents (31.6 have no idea as to when they will be able to retire and 19.3 percent indicated they wpostpone retirement for up to two years or more.
The State of Financial Planning

A Crisis in Confidence• Americans’ confidence in their financial planning capabilities remains low. In 2009, 8

survey respondents said they were less than confident in their financial planning knosurvey respondents said they were less than confident in their financial planning kno

abilities, with 34.2 percent indicating they were “not too” or “not at all” confident. 

• Few people are certain about how much income they will need in retirement. Most p

pe ce t) say t ey a e u su e o a e o dea about o uc co e t ta e to 

rcent) say they are unsure or have no idea about how much income it will take to 

• Retirement and/or financial planning is viewed as too complex or difficult by one in tw

percent). Many people (35.5 percent) say they would rather not spend more time on 

p g lanning.

• The number of people who have taken steps to plan for retirement remains relatively 

2008.
The State of Financial Planning

Planning Leads to Optimism• The Hartford’s research found that financial planning makes a pronounced differenc

both p p ersonal and financial. Those who have taken the time and expended the ene

retirement or their financial future not only are in a better place financially but have a outlook about their retirement future than those who have not:

– Those who have planned for retirement are three times more likely to be confiden

have sufficient income in retirement as comp p ared to those who have not planned

(31.5 percent) of those who had planned said they were “very” or “extremely” consufficient income for retirement as compared to 10 percent for those who had not 

– Overwhelmingly, those who did not plan were uncertain as to where to obtain fina

those who had not created a financial plan, 42.5 percent said they did not know w

compared to 9.6 percent for planners.

– Those who described themselves as planners were three times more likely to rely 

independent financial expert for credible financial advice than those who said the(39.9 percent vs. 13.4 percent); were more likely to rely on a bank representative 12. 5 percent) or securities firm (16.5 percent vs. 5.7 percent) or insurance agent 

4.4 percent) for planning advice.

– Survey respondents who had done some planning were twice as likely as non-pla

knowledge and abilities with financial planning (23.6 percent vs. 9.6 percent).
The State of Financial Planning

– Survey respondents who had undertaken some financial planning were three time

know how much income they would need in retirement. A total of 61.3 percent of 

“certain” or “nearly certain” about their income needs compared to 22.6 percent of 

– Those who planned were more likely to say the recent market correction had no ef

retirement target date. Nearly three in five planners (57.7 percent) said they were retire as planned compared with 38.7 percent of those who did not take planning spercent of those who did not plan said they had no idea as to when they might reti

percent id th ld h t d l ti t t t t said they would have to delay retirement up to two years or more.

– Planners took more action and generally painted a rosier financial picture of the pa

than those who had not planned. For instance, 18.4 percent of planners said their earnings had increased as compared to 4.8 percent of non-planners. Planners we

as non-planners to have increased their net worth (12.2 percent vs. 5.3 percent) aof planners said they save more while 22.4 percent of non-planners could say the 

– Planners were more bullish about the market and more likely to continue investing

had created a plan, 9.2 percent continued to invest heavily in the market compared 

for non-planners. Three in 10 planners (30.2 percent) said they were more cautiouto invest compared to 12.7 percent who had done no planning.

– The more affluent the respondent, the more likely he or she was to have done som

planning. Of those earning $100,000 annually or more, 75.2 percent had planned pg g y p p percent of those who earned $50,000 to $99,999 and 40.4 percent who earned les
Aversion to Risk Surprisingly Wanes

• Many people continue to describe themselves as “risk averse,” although the number 

declined since before the market meltdown. Those describing themselves as “comp

risk dropped to 13 percent in 2009 from 15 4 percent in 2008 and 15 7 percent in 20risk dropped to 13 percent in 2009 from 15. 4 percent in 2008 and 15.7 percent in 20

of people who said they would accept “some risk” for a “moderate potential for financincreased to 51.7 percent in 2009 from 46.8 percent in 2008.

• The greatest risk in retirement was seen as “outliving my money” (23 percent). That 

last year when 22 percent said the greatest risk was the financial impact of a “signifior problem,” which came in at No. 2 this year (21.5 percent). The number of responthe lack of a guaranteed income in retirement as their greatest risk nearly doubled to 2009 from 10.2 percent in 2008.

• Nearly one in three people (31.3 percent) said they are hesitant to invest and have n

money in the stock market. Another 22.2 percent said they were more cautious sincmeltdown and had pulled back somewhat on investing.

• Nearly one in four respondents (23.2 percent) said they were unsure what to do whe

investing.
Confidence Remains Down in the Dumps

• Confidence about having enough money for retirement remains low. Nearly four in f

percent) are less than confident that all of their sources for retirement income, includsponsored pension plans, government-sponsored pension plans and personal savin

will be adequate to maintain their standard of living in retirement. That compares to 2008, 78.5 percent in 2007 and 69.2 percent, indicating a longer term decline in con

• Although plans to rely on an employer-sponsored pension plan have remain essentia

since 2006, the confidence in this traditional source of retirement income dropped dr

2009. Those who said they were “not at all confident” in their employer pension plan dramatically to 34.4 percent in 2009 as compared to 2.6 percent in 2008, 5 percent percent in 2006. Those who reported they were “somewhat” to “extremely” confidenpercent in 2009 from 84.8 percent in 2008.

• Government pension plans 

– S S ocial 

Security and state, county and municipal pensio

No. 1 source of retirement income (34.9 percent) in 2009 and actually increased in im2008 (31.8 percent). Money in banks and investments declined as an important soudropping to 10.9 percent in 2009 from 19.7 percent in 2008. The top three sources, importance, were public pensions, employer-sponsored pensions and employer-spo

and investment plans.

• Confidence in Social Security as a sufficient source of retirement income remains es

unchanged. A total of 83.7 percent were less than confident that Social Security aloan adequate retirement income as compared to 84.7 percent in 2008, 84.9 percent ipercent in 2006.
Retirement Date Becoming More Elusive

• Increasingly, people expect to retire later and spend fewer years in retirement. The n

who expect to retire before age 60 continues to decline, with 6.7 percent in 2009, de

percent in 2008 and 13.8 percent in 2007. percent in 2008 and 13.8 percent in 2007.

• The number of people expecting to retire after age 70 continues to climb, with 15.4 p

13.6 percent in 2008 and 9.6 percent in 2007.

• More people expect to live in retirement between 10 and 20 years. The percentage 

expecting such a term in retirement was 43.8 percent in 2009, up from 34.1 percent percent in 2007 and 37.5 percent in 2006.

• The number of people who expect to be retired for more than 20 years declined, with 

2009 compared to 47 percent in 2008, 47.6 percent in 2007 and 46.5 percent in 2006

• M t l l t ti b t th f 60 d 70 Th Most people plan to retire 

b

etween the ages of 60 an

d 70. Those years were t t 

targete

63.8 percent in 2009, 61.8 percent in 2008 and 58.7 percent in 2007 
RISK LOGY

STUDYING THE ELEMENTS OF RISK IN RETIREMENT

Ma

Market

Eq

Equity

Fi

Fixed Income

Wi

Withdrawal

It

Interest

In

Inflation

Vo

Volatility

Ti

Timing

Lo

Longevity
1 RISKOLOGY
RISK LOGY

IF RETIREMENT PLANNING WERE

A SCIENCE IT MIGHT BE CALLED

That’s because investing for

retirement involves a number

of risks.

• How much should I invest 

each year? 

• What’s my ultimate goal? 

• How do I turn those savings

into reliable income that 

won’t run out? 

This brochure will introduce

a new way to think about

retirement planning—not in

terms of how much to accumulate—

rather, by considering your unique

retirement income needs, and

reviewing strategies for generating

income to meet those needs. 

To begin, let’s consider the good

news about life expectancy, and

the risk that lengthening life spans

pose to a comfortable retirement. 

RISKOLOGY 2
3 RISKOLOGY

In

Inflation

Eq

Equity

Sq

Sequence

It Wd

Withdrawal Interest

Bd

Bond

Dp

Depletion

WE’RE LIVING LONGER

than ever these days. And

that’s good, of course.

But while you may not

consider a long life to be

a retirement issue, it just

may be the single most

important factor to plan

for; a “risk” that affects

every other challenge to

a successful retirement

income plan.

Hypothesis

Life spans, and therefore retirements, are getting longer.

That means you may have many more years to plan for than you realize. 

Longevity Risk

Observation

Thanks to a combination of medical

advances, better nutrition and healthier

lifestyles, we’re enjoying some of the

longest life expectancies in history. So

much so that financial advisors often

point to “The Rule of 63/36.”

Assuming a couple 65 today, there’s 

a 63% chance at least one will live to

celebrate their 90th birthday.

And the odds that one will celebrate

their 95th birthday is a robust 36%.

1
RISKOLOGY 4

Lo

Result

As good as longer life expectancy is, it

does increase the risk of running out of

money. Consider this: Some 80,000

Americans will turn 100 in 2010. By the 

year 2030, that number will climb to more

than 200,000—and may include you!

Source: www.census.gov, 2009

Test

Longer life expectancies mean longer

retirements. And therefore, a longer period

of time you’ll need reliable annual income.

As the chart below shows, odds are good

that you or your spouse could be retired

for 25 to 30 years. In other words, you

could need a predictable source of annual

income for just about as many years in

retirement as you did when you were

working. 

Retirement Expectancy1

Longer life expectancies mean longer retirement expectancies—

perhaps considerably longer than you realize. 

Assumptions

Assumes retirement

begins at age 65.

Longevity data

presented does not

reflect mortality

from birth statistics

available from U.S.

Census Bureau. 

1 Data Source: 

Society of 

Actuaries

Annuity 2000

Mortality Tables.

0 10 20 30

YEARS IN RETIREMENT

21yrs

24yrs

25yrs

27yrs

30yrs

30yrs

49% CHANCE

49% CHANCE

63% CHANCE 36% CHANCE

26% CHANCE

23% CHANCE
In

Inflation

Eq

Equity

Sq

Sequence

It Wd

Withdrawal Interest

Bd

Bond

Dp

Depletion

5 RISKOLOGY

Observation

Today, inflation is historically low. But back in the early 1980s, it was ra 2

2Data Source: miseryindex.us, 1/2010.

Hypothesis

Because of inflation, maintaining your current standard of living

throughout retirement will require that you gradually increase your

retirement income. 

Inflation Risk

AS LIFE EXPECTANCIES INCREASE, it’s easy to underestimate the risk that inflation can have on maintaining

a comfortable retirement lifestyle. But if given enough

time, even a little inflation can take a big toll. 
Annual

Inflation

Up, Up, and Away!

RISKOLOGY 6

In

Test

It’s hard to predict the inflation rate next year, let alone during your entire retirement.

But over the past 20 years, inflation has averaged about 3% a year.2 Given enough time,

even this relatively benign rate can have a dramatic effect on how much annual income

you will need just to keep pace.

Result

Retirement is expensive enough. With inflation, the

costs can be stunning. Example: a simple $5 meal over

20 years can cost two people upwards of $219,000.

Add a modest 3% annual inflation rate, and the cost

swells to over $294,000. Ignore inflation and you risk

either running out of money or making some sacrifices

to your lifestyle.

“RULE of 219”

$5 meal

x 2 people

x 3 meals a day

x 365 days a year

x 20years

$219,000

This hypothetical chart is for illustrative purposes only.
7 RISKOLOGY

In

Inflation

Eq

Equity

Sq

Sequence

It Wd

Withdrawal Interest

Bd

Bond

Dp

Depletion

WHEN IT COMES TO INVESTING in the financial markets,

there are no guarantees. The value of today’s nest egg will

likely be different tomorrow, and different again a month

or year from now. 

Relying on a specific portfolio balance to generate lifetime

retirement income ignores this natural law of investment

markets. 

Market Risk

Observation

Historically, markets move up. But not

without intermittent—and sometimes

serious—setbacks. Since 1926, the Dow

Jones Industrial Average has reported

positive annual returns twice as many

times as negative ones.

3

But of those negative years:

• 13 were annual losses of -10% or less

• 9 were losses of between -11% and -20%

• 2 were losses of between -21% and -30%,

• 4 were losses of -31% or more.

Hypothesis

Annual retirement income that depends on market-based investments

can vary dramatically due to the common fluctuations associated

with market volatility. 

3 Data Source: www.djindexes.com, 2010. 56 positive years vs. 28 negative years from 1926-2008. The Dow

Jones Industrial Average is an unmanaged, price-weighted index of 30 of the largest and most widely held

stocks traded on the NYSE. It is not available for direct investment.

INDEX PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
RISKOLOGY 8

Ma

Result

There are risks involved in relying on a variable account value to provide a consistent,

predictable, and reliable annual income. A declining account value could drag your

standard of living down with it.

Test

Many investors hope to reach a target

retirement “number.” But reaching that

number one year doesn’t mean you’ll be

able to maintain it the next.

This basic market ebb and flow can cause

problems if you’re counting on your nest

egg to provide a reliable, annual income. 

$1 m

$0

$500k

Yr. 1 Yr. 2 Yr. 3

Income = $50,000

Account Value = $1,000,000

Income = $25,000

Account Value =

$500,000

Income = $37,500

Account Value = $750,000

What If the Market Falls?

This hypothetical chart is for illustrative purposes only and assumes a 5% withdrawal.
In

Inflation

Eq

Equity

Sq

Sequence

It Wd

Withdrawal Interest

Bd

Bond

Dp

Depletion Timing Risk

LONG-TERM INVESTORS shouldn’t be 

market timers. That’s a widely held and 

time-tested adage. But when it comes to 

retirement planning, you might not have a

choice. 

Why? Because when you decide to retire

can play a significant role in how successful

your retirement will be, especially if you’re

unlucky enough to retire on the eve of a

prolonged slump.

Observation

The combination of market underperformance plus annual withdrawals can

sabotage even the best retirement income 

plan. In fact, 52% of investors have had to

change their lifestyle due to the recent

market crisis.4

Hypothesis

If your retirement happens to begin just before a market

downturn, you might run out of money sooner than you think. 

4 Data Source: Investment Advisor, “Being Prepared

for 2009”, 12/10/2008.

5 Data Source: Thomson Financial Company, 1/09.

INDEX PAST PERFORMANCE IS NOT 

INDICATIVE OF FUTURE RESULTS

Assumptions for chart on page 10:

Hypothetical initial value of $500,000. Portfolio:

50% large-company stocks, 50% bonds. Assumes 

reinvestment of income and no transaction costs or

taxes. Stocks are represented by the Standard &

Poor’s 500® Index which is a market-capitalization

weighted price index composed of 500 widely held

U.S. common stocks, frequently used as a measure

of U.S. stock market performance. Bonds are 

represented by the Barclays Capital Govt which is an

index of all publicly issued long-term government

debt securities. Average maturity of 23—25 years.

Jane invested in 1975 taking annual withdrawals of

$25,000 adjusted for an inflation of 4.08% each year

(Average inflation from 12/31/75–12/31/09); James

invested in 1965 taking annual withdrawals of

$25,000 adjusted for an inflation of 4.45% each year

(Average inflation from 12/31/65–12/31/09).

The indices illustrated are unmanaged and unavailable

for direct investment. This is for illustrative purposes

only and not indicative of any investment.

9 RISKOLOGY
RISKOLOGY 10

Ti

Result

Timing matters. In this case we are talking about retirement timing. Inadvertently

choose a bad time, and you risk sabotaging even the best financial plan.

Test

Jane and James are long-term investors

who both have saved $500,000 in a

50/50 mix of bonds and equities. They 

intend to withdraw 5% ($25,000) a year,

increasing withdrawals annually for inflation.

Their only difference—and it’s a big one—

is when they retired.5

Same Investment. Different Results

When you retire can have a dramatic effect

on how long your savings will last. 

$0

$1m

$2m

$3m

$4m

$5m

1965 1975 1985 1995 2009

$5,245,996

$0

James

Retired 12/31/65

Jane

Retired 12/31/75
11 RISKOLOGY

In

Inflation

It Wd

Withdrawal Interest

Bd

Bond

Dp

Depletion

6 Assumptions for page 12: $500,000 invested in a

50/50 equity/fixed income mix on 12/31/1972. 

Assumes reinvestment of income and no 

transaction costs or taxes. Equities are represented

by the S&P 500 Index, an unmanaged list of 500

widely held U.S. common stocks frequently used as

a measure of U.S. stock market performance. Bonds

are represented by the Barclays Capital U.S. 

Aggregate Bond Index, which is made up of the

Barclays Government/Corporate Bond Index, 

Mortgage-Backed Securities Index, and AssetBacked Securities Index, including securities that

are of investment-grade quality or better, have at

least one year to maturity, and have an outstanding

Par value of at least $100 million. Monthly 

withdrawals are adjusted for inflation based on the

CPI. Indices are not available for direct investment.

Data Source: Thomson Reuters, 1/09

INDEX PAST PERFORMANCE IS NOT 

INDICATIVE OF FUTURE RESULTS

This hypothetical illustration does not represent the

performance of a specific fund.

Withdrawal R

WANTING MONEY TO LAST

a lifetime is something everyone

can understand. What may be less

well known is just how fast a nest

egg can be emptied, even with a

modest annual withdrawal rate. 

Hypothesis

Even if you withdraw a modest 5% of your nest egg each year, your

retirement portfolio may not last a lifetime. 

Observation

One retirement income strategy suggests that you can withdraw a specific percentage

of your retirement savings each year and, if it’s modest enough, your savings will last a

lifetime. But considering that retirements are getting longer, this approach may no

longer work.
RISKOLOGY 12

Wi

Test

Considering that your retirement could

last 25 or 30 years, withdrawing even a

modest 5% of your savings annually can

deplete your nest egg faster than you may 

want. Increasing those withdrawals by

even a single percentage point or two

could leave you with a significant shortfall.

Withdrawing Too Much Too Fast?

Result

Even modest annual withdrawals can

have a dramatic effect on how quickly you

might run out of money. Long-term 

retirements require long-term, reliable 

annual income to be confident that your

money will last a lifetime.

ate Risk

12/31/72 2/29/84 10/31/86 7/31/92

$500k

7% Withdrawal Rate

6% Withdrawal Rate

5% Withdrawal Rate ? ? ? ? ? ? ? ? ? ? ? How Many Years Left?

Years Income lasted 12 14 20

Years left in a 

30-year retirement 18 16 10

This is a single historical example and there is no assurance that past market

performance will be repeated performance will be repeated.
In

Inflation

Eq

Equity

Sq

Sequence

It Wd

Withdrawal Interest

Bd

Bond

Dp

Depletion Fixed Income 

13 RISKOLOGY

Hypothesis

Investors who regularly reinvest in bonds and bond funds may discover

that, because bonds can also be volatile, the value, or interest rate

they counted on one year to generate income may not be available

the next.

Observation

When interest rates fall, bond values rise. But when interest rates rise, the value of your

bond investment can tment can fall. Something to consider in this historically low interest rate

environment. envir

BONDS CAN BE VOLATILE, TOO

Notice in the table below the effect interest rates can have on bond values. When interest

rates rise, bond values fall. And the longer the bond (i.e. 30-year), the steeper the fall.

This hypothetical example is for illustrative purposes only and not meant to represent any investment option.

Assumes an initial $100,000 bond investment. Interest rates fluctuate +/- 3%. 

Data Source: BRS Anser, 12/09

RETIREES COMMONLY TURN to bond, or fixed

income, investments for their retirement income

needs, partly because bonds are considered to

be less volatile than equities. 

But bond investments are not without risk.

Indeed, under the right circumstances, bond

values and bond interest rates can both be

volatile.

Bonds – 3% – 1% 1% 3%

2 year $101,975 $101,918 $100,000 $98,126 $94,509

5 year $112,864 $104,736 $100,000 $95,492 $87,168

10 year $127,901 $108,561 $100,000 $92,205 $78,668

30 year $167,829 $117,579 $100,000 $86,025 $65,815
Fi

Result

Retirees who rely on fixed-income 

investments alone for their annual income

needs run the risk of having their income

significantly decline if interest rates or

bond values fall.

Test

Bond values aren’t the only things that

fluctuate. Bond yields, or interest rates,

also vary. The yield that is available one

year may not be available when it comes

time to re-invest in another bond. If you’re

counting on a specific amount of money

to live on, a lower yield might also force

you to lower your standard of living.

Assumptions

Based on a

$100,000 

investment. 

7 Bonds are 

represented by the

Barclays Capital

Govt which is an

index of all publicly

issued long-term

government debt

securities. 

Data Source: 

Thomson Financial,

1/10.

Risk

The Problem With Banking on Bond Yields

RISKOLOGY 14

0%

3%

6%

9%

12%

15%

BOND YIELD

$5,650

annual income

$3,260

annual income

1979 1989 1999 2009

$9,430

annual income

$8,490

annual income

Historic bond rates7

10-year marker for reinvestment
15 RISKOLOGY

 

Non-Guaranteed

Investments for:

Recreation

Travel

Non-Necessities

Guaranteed

Income

Sources for:

Food

Housing

Medications

Lo In Ma Ti Wi Fi

CONCLUSI N

Your Retirement

Income Formula

Non-Guaranteed

Investments:

Stocks

Bonds 

Mutual Funds

CDs

Guaranteed

Income

Sources:

Social Security

Pensions

Annuities

When you think about the elements of risk in retirement, 

what becomes apparent is the one risk that all these retirement

income strategies have in common— the risk that you will run out

of money too soon. 

Guarantees Can Help 

One solution worth considering is

guaranteed, lifetime income. Income 

that is unaffected by market volatility,

fluctuating interest rates, or withdrawal

rate formulas. Income that is guaranteed

to last a lifetime, no matter how long that

lifetime lasts. 
RISKOLOGY 16

Guarantee the “Must Haves”

How much guaranteed income is enough?

Just as our DNA is unique, no one formula

fits everyone. Many advisors recommend

you secure enough guaranteed income to

cover basic needs, such as food, housing,

and health care, plus anything else you feel

is a “must have” to make your retirement

meaningful.

Invest for “Nice to Haves”

With your basic needs covered, you’re

now free to invest for growth potential

for the “nice to haves” of retirement,

such as travel, recreation, and 

entertainment expenses. Things you can

do without in times of market under 

performance. But things that otherwise

will make your retirement even more

satisfying.

Develop Your Plan

The Hartford can help. The next two pages

include a “Retirement Income Worksheet”

that can help you identify your retirement

income needs, and how much you’ve

saved so far to meet those needs.

Additional worksheets and retirement

planning resources also are available

online at HartfordInvestor.com. 

Once you’ve completed the worksheets,

meet with your financial advisor to review

your information and help develop a 

financial plan that is unique to you.

A plan that will both invest your assets for

growth potential and secure guaranteed

income for daily living expenses. 

A plan that can help ensure your nest egg

lasts a lifetime. Your lifetime.
Primary housing $

Food $

Transportation $

Clothing and personal needs $

Healthcare insurance

premiums & copays $

Taxes $

Other: ________________ $

Other: ________________ $

TOTAL (add each category) $

Travel $

Entertainment $

Hobbies $

Charitable giving $

Second house $

Other: ________________ $

Other: ________________ $

Other: ________________ $

TOTAL (add each category) $

Monthly “Nice to Have” Needs

“Nice to Have” needs are the stuff of retirement

dreams—travel, recreation, dinners out. To realize those

dreams, you’ll need income above and beyond what

you’ve saved for your basic needs.

Monthly “Must Have” Needs

“Must Have” needs are all those expenses you simply

can’t avoid—such as food, housing, insurance, taxes, and

healthcare. To cover “must have” needs, you should rely

on sources of income that are guaranteed.

LIST YOUR EXPENSES

Use the boxes below to help identify your monthly expenses.

1 Then add them up to determine your total monthly expenses.

RETIREMENT 

INCOME WORKSHEET

Use the worksheet to the right to help

identify your “must haves”, such as

food, housing and insurance, as well

as your “nice to haves” that can help

make your retirement the meaningful 

experience you’ve worked so hard to

achieve. 

Next, list the sources of retirement

income that you expect to receive to

pay for those expenses.

Finally, make an appointment to share

this information with your advisor and

together create a financial plan that

can help turn your retirement dream

into reality.

17
ESTIMATED

TOTAL ASSETS MONTHLY INCOME

Retirement plans $ $

IRAs (Traditional/Roth) $ $

Mutual funds $ $

Securities (stocks, bonds) $ $

Certificates of Deposit $ $

Savings/checking and money $ $

market accounts

Annuities $ $

Other: ________________ $ $

TOTAL (add each category) $ $

ESTIMATED

TOTAL ASSETS MONTHLY INCOME

Social Security $ $

Pension(s) $ $

Paycheck $ $

Annuity payout(s) $ $

Rental income $ $

Trust funds $ $

Other: ______________ $ $

TOTAL (add each category) $ $

“Nice to Have” Income

“Nice to Have” income can vary depending on such things as fluctuations in the

financial markets, or increases in inflation.

“Must Have” Income

“Must Have” income comes from more dependable sources, such as Social

Security, pensions, and annuities.

LIST YOUR INCOME

Use the boxes below to help identify your assets. Then add them up to determine total assets. 

(Note: Estimate where possible how much you expect your assets to produce in monthly 2

income. If you're unsure, ask you financial representative to help.)

RISKOLOGY 18
You should carefully consider the investment objectives,

risks, charges, and expenses of The Hartford Mutual

Funds and Hartford variable annuities and their 

underlying funds before investing. This and other 

information can be found in the prospectuses, which 

can be obtained from your investment representative 

or by calling: 888-843-7824 for Hartford Mutual Funds

or 800-862-6668 for Hartford variable annuities. Please

read the applicable prospectus carefully before you

invest or send money.

This brochure is not offering or recommending any 

financial planning services on behalf of The Hartford.

“The Hartford” is The Hartford Financial Services Group, Inc.,

and its subsidiaries, including the issuing companies of 

Hartford Life Insurance Company and Hartford Life and 

Annuity Insurance Company. 

Hartford variable annuities are issued by Hartford Life Insurance

Company and Hartford Life & Annuity Insurance Company

and are underwritten and distributed by Hartford Securities

Distribution Company, Inc.

Hartford Mutual Funds are underwritten and distributed by

Hartford investment Financial Services, LLC.

All information and representations herein are as of 12/09,

unless otherwise noted.

Protecting Individuals &

Families Since 1810

We were there for Chicago after 

the Great Fire. For the construction

of the Hoover Dam. For the first

meeting of the United Nations. For ons. For

the turning of two centuries. And

while we’re proud of our historic

past, even more important is the 

future we’re helping to create. A 

future in which we strive to help 

provide great provide greater security, prosperity,

and superior solutions for our clients.

Because what’s most important to 

us is not the history we’ve achieved,

but the history we plan to make. 

P7235 2/10 ANN14182 08-6644A Printed in U.S.A. © 2010 The Hartford, Hartford, CT 06115 HartfordInvestor.com

The Hartford is an 

Official Corporate 

Partner of the NCAA®
The Hartford Lifetime IncomeSM

Product Summary

Updated March 31, 2009 

Table of Contents

Hartford Lifetime Income at a Glance 1

Is This Investment Option Right For You? 3

How Hartford Lifetime Income Works 3

 Accumulating Retirement Income 3

 Receiving Your Retirement Income 5

How Are Income Share Prices Determined? 7

 Pricing Factors 7

 Fees 7

Additional Product Details 7

 Income Share Value 7

 Cash-Out Value 7

 Benefits Available to Your Spouse or Other

 Beneficiary

8

Risks of This Investment Option 9

Other Important Information 10

About Hartford Life 12

Glossary 12

This Product Summary is intended to provide a detailed description of The Hartford Lifetime IncomeSM investment option. 

You should read this disclosure document before you purchase Hartford Lifetime Income shares. Please refer to the glossary 

on page 12 for certain terms used in this disclosure document.

The information in this document is subject to plan rules and any restrictions.
Hartford Lifetime Income at a Glance

Overview Hartford Lifetime Income is an investment option within your employersponsored retirement plan that provides guaranteed lifetime income. 

You may invest in Hartford Lifetime Income as you would in any other 

investment option within your retirement plan – through:

» periodic payroll contributions 

» transfers from other investment options within your plan account 

» rolling over savings from other retirement plan accounts 

Your contributions to Hartford Lifetime Income buy partial or full income 

shares. Each income share provides you with $10 of guaranteed1 monthly 

retirement income, beginning at age 65. You have the flexibility to start 

your income earlier or later than age 65, subject to plan rules, but no later 

than age 70. Should you start your income earlier or later than age 65, your 

income amount will be adjusted accordingly.

Hartford Lifetime Income is a fixed deferred annuity provided through a 

group annuity contract (the “Contract”) issued by Hartford Life Insurance 

Company (“Hartford Life”) in conjunction with your employer’s retirement 

plan. 

Investment 

Objective

To provide you with a stream of fixed retirement income payments that are 

guaranteed for life by Hartford Life.

Benefits Hartford Lifetime Income provides you with many benefits:

» You know exactly how much guaranteed lifetime income you are going 

to have at retirement. This helps simplify retirement income planning. 

» You can purchase Hartford Lifetime Income in regular amounts over time 

at different prices – this process, known as dollar cost averaging, helps 

manage pricing risks.

» You will have the flexibility to cash out income shares before retirement 

income starts.2

» You will have a monthly retirement income stream that is not subject to 

market volatility and helps protect against outliving your assets.

» You choose your payment option when you are ready to receive your 

income.

» You can choose lifetime income to cover both you and your spouse. 

» Upon your death, your net contributions3 will be returned to your 

beneficiary minus any income payments made to you (in certain 

circumstances, your beneficiary may opt to receive lifetime income). 

1

1 The guarantees of Hartford Lifetime Income are based upon the claims-paying ability of Hartford Life Insurance Company.

2 Taxable distributions (and certain deemed distributions) are subject to ordinary income tax and if made prior to 591/2 may 

 also be subject to a 10% federal income tax. The value of your income shares when you cash out is equal to 96% of the current 

 purchase price Hartford Life would charge you at your current age.

3 The money you contributed to purchase your income shares, reduced by any cash-outs you take and any income payments 

 you receive.
Who 

might want 

to invest in 

Hartford 

Lifetime 

Income?

Hartford Lifetime Income may be appropriate if you:

» Want the assurance of guaranteed monthly retirement income. 

» Seek protection against outliving your retirement savings. 

» Need to supplement Social Security and/or employer pension income.

» Want to have enough income in retirement from predictable sources to 

cover essential expenses such as housing, food, clothing and healthcare.

» Are interested in balancing an aggressive portfolio with an investment 

that seeks to provide guaranteed income. 

How 

contributions 

are invested

Contributions to Hartford Lifetime Income are invested in the general account 

of Hartford Life. Hartford Life’s general account is invested in a diversified 

portfolio that consists primarily of investment grade debt securities, including 

corporate bonds, government bonds, mortgage-backed securities and other 

asset-backed securities. You do not participate in the investment results of 

Hartford Life’s general account.

Principal risks There are certain risks associated with investing in Hartford Lifetime Income, 

primarily: 

» Mortality risk – the risk that you will not live long enough to receive 

retirement income for a substantial period of time. The longer you live 

from your income start date, the more monthly income you will receive 

from Hartford Lifetime Income. However, regardless of when you die, you 

or your beneficiary will always receive back at least your contributions 

(minus any cash-outs or income payments). 

» Inflation risk – the risk that your fixed retirement income payments will 

not keep pace with annual cost-of-living expenses.

» Credit risk – the risk that Hartford Life may not be able to honor its 

commitment to you. 

» Interest rate risk – the risk that you cash out income shares when income 

share prices are lower than when they were originally purchased.

See the “Risks of This Investment Option” section for a more detailed 

discussion of these risks. 

2
Is This Investment Option Right For You?

When planning for a secure retirement, having predictable income sources to cover essential expenses is an important 

consideration. Essential expenses include housing, food, clothing, and healthcare. 

Hartford Lifetime Income can supplement your other sources of guaranteed retirement income, such as Social Security or an 

employer pension, in order to help meet your essential expenses. Therefore, it’s important for you to compare your projected 

essential expenses with your sources of retirement income. If there is an expense gap, Hartford Lifetime Income can be used to 

help close that gap. It is designed to be one part of your overall retirement income plan.

There are unique features of Hartford Lifetime Income that you should consider before deciding to invest. Hartford Lifetime 

Income is an annuity and not a mutual fund. As such, its primary purpose is to provide future guaranteed retirement income 

versus asset accumulation. In other words, when you invest in Hartford Lifetime Income, your goal is to secure a future monthly 

income stream. 

Before deciding to invest, you should also understand the risks and how Hartford Lifetime Income might fit within your financial 

goals. Hartford Lifetime Income may NOT be appropriate if:

» You are seeking a short-term investment 

» Your health is seriously impaired, reducing your life expectancy (compared to others your age) 

» You anticipate needing your retirement savings prior to retirement

» You already possess sufficient pension income

3

How Hartford Lifetime Income Works

There are two stages to Hartford Lifetime Income: 

» Stage 1: Accumulating income through your employer’s retirement plan, and 

» Stage 2: Receiving income while in retirement

Accumulating Retirement Income

As with any other retirement plan investment option, you may contribute to Hartford Lifetime Income in three ways:

1) Via payroll contributions

2) By transferring/exchanging money from other investment options within 

 your plan account 

3) By rolling over savings from other retirement plan accounts

You may start, stop and resume making contributions at any time (amounts subject 

to any IRS or plan limitations). Your contributions purchase partial or full income 

shares.

Each income share provides $10 of monthly lifetime income starting at age 65. For 

example, if you acquired 100 income shares, your monthly income would be $1,000 

beginning at age 65 and guaranteed to last your lifetime.

Upon making a contribution to the Hartford Lifetime Income option, Hartford 

Life will provide you with a certificate that describes our guarantee to pay you 

an annuity benefit. You can access the certificate online through your Hartford 

Lifetime Income online account. (See “Keeping Track of your Guaranteed Income” 

for more information.)

SAMPLE
4

Example: 

The following hypothetical example illustrates the number of income shares purchased through ongoing payroll contributions 

directed to Hartford Lifetime Income beginning at different ages and made until age 65 when retirement income commences. 

(Income share prices are as of March 31, 2009, and are subject to change.)

Income Purchased by Contributions of $100 per Month until Age 65

Age 

Contributions 

Begin

Total 

Contributions*

Total 

Income 

Shares 

Purchased

Income Starting 

at Age 65 Total Income Received

Monthly Annually From Age 

65 to Age 75

From Age 

65 to Age 85

From Age 

65 to Age 95

20 $54,000 174 $1,740 $20,880 $208,800 $417,600 $626,400

30 $42,000 92 $920 $11,040 $110,400 $220,800 $331,200

40 $30,000 45 $450 $5,400 $54,000 $108,000 $162,000

50 $18,000 19 $190 $2,280 $22,800 $45,600 $68,400

Here is another hypothetical example. The table below shows the number of income shares purchased by a one-time plan 

investment transfer or rollover of $100,000 to Hartford Lifetime Income. (Income share prices are as of March 31, 2009 and are 

subject to change.)

Income Purchased by a $100,000 Transfer or Rollover

Age 

Transfer/ 

Exchange 

Made

Transfer 

Amount*

Total 

Income 

Shares 

Purchased

Income Starting 

at Age 65 Total Income Received

Monthly Annually From Age 

65 to Age 75

From Age 

65 to Age 85

From Age 

65 to Age 95

40 $100,000 281 $2,810 $33,720 $337,200 $674,400 $1,011,600

50 $100,000 153 $1,530 $18,360 $183,600 $367,200 $550,800

60 $100,000 84 $840 $10,080 $100,080 $201,600 $302,400

* At minimum, either you or your beneficiary is guaranteed to have your contributions / transfer amount returned (without interest).

Keeping Track of Your Guaranteed Income

Once you have purchased Hartford Lifetime Income, you may track the details of your guaranteed income benefit online: 

1. Logon to your retirement savings plan account.

Your retirement savings plan account includes the value of your Hartford Lifetime Income option and represents this as your 

market value. The number of units shown equals the market value because it’s valued using $1.00 per unit. The market value 

and number of units shown is not reflective of your guaranteed income benefits. To view the details of the income shares 

you own and your future guaranteed monthly income benefit, proceed to step 2. 

2. Under your investment summary of your account, click the Hartford Lifetime Income listing to access

 your Hartford Lifetime Income online account.

Your Hartford Lifetime Income online account details your future guaranteed monthly income benefit, including the 

number of income shares you own and your beneficiary benefits. Your Hartford Lifetime Income online account information, 

including purchases and sales of income shares, income share prices, and income share value fluctuations, are calculated and 

maintained by Hartford Life. 

Note: The income share value displayed on your Hartford Lifetime Income online account may differ from the balance shown 

in your plan account due to differences in end-of-day processing schedules between the two accounts.
5

To learn more online and to access planning tools:

Go to the Hartford Lifetime Income website:

» Logon to your retirement savings plan account

» Locate and click the Hartford Lifetime Income listing in your plan’s investment lineup.

» Follow the link to access the Hartford Lifetime Income website. 

Here you’ll find video overviews, calculators, frequently asked questions and more. 

To invest online:

To invest in Hartford Lifetime Income, simply logon to your retirement savings plan account to:

» Choose the amount you wish to contribute to Hartford Lifetime Income on an ongoing basis

» Transfer money from one or more investments in your account to Hartford Lifetime Income. 

» Allocate assets you may have rolled over from other plans and IRA accounts to Hartford Lifetime Income. Contact your plan

 administrator for rules regarding rollovers. 

To speak with someone:

Call your plan’s toll-free number to invest in Hartford Lifetime Income or if you have questions.

Receiving Your Retirement Income

While income share prices are based on income beginning at age 65, you may start your income earlier or later than age 65, 

subject to plan rules, but no later than age 70. Your monthly retirement income will be reduced if you start earlier and increased 

if you start later. 

When your income starts, you may choose lifetime coverage for your spouse in addition to yourself. This election will reduce 

your monthly income because payments will be spread over the lives of both you and your spouse. 

To initiate your retirement income payments, do the following: 

1. Contact your plan administrator to initiate an annuity transfer – an in-kind nontaxable distribution of your Hartford Lifetime 

Income shares from your retirement plan. Within 10 days of your completed request, you will receive an income share 

certificate from Hartford Life. The income share certificate is your statement of the 

income shares you own and reflects the guaranteed income you have purchased. 

Please note: If your monthly income payments are less than $50, Hartford Life 

may pay you less frequently than monthly or return to you the greater of your 

contributions (minus any cash-outs of income shares) or the cash-out value of 

your income shares (see “Cash-Out Value” section). 

2. After you have received your income share certificate, contact Hartford Life to 

determine when you wish to receive your income payments. Hartford Life will 

provide you with a quote based on the number of income shares you own, your 

chosen income start date and the form of payments available to you. These 

include single life and joint and survivor options (described on page 6). SAMPLE
Fixed Cost-of-Living Increases

You may include an annual fixed percentage increase between 1% - 5% to your single life or joint and survivor income payment 

selection. If elected, your payment will increase annually as of the anniversary of the actual starting date of your income 

payment stream.

Whichever your income selection, after you begin receiving your retirement income, you may not change your payment option 

nor cash out your income shares.

6

3. After you review your quote and provide Hartford Life with your payment 

selection, you will receive a certificate summarizing your payment selection and 

your monthly income payments will begin.

* The money you contributed to purchase your income shares, reduced both by any cash-outs you take and any income 

 payments you receive.

Single Life Income Option with Cash Refund

The single life income option provides you with monthly income payments 

for the rest of your life. If you die before receiving income equal to your net 

contributions to Hartford Lifetime Income, your beneficiary will receive a lump 

sum payment of your remaining net contributions* – referred to as the cash 

refund death benefit. See “If You Die Before Retirement Income Payments 

Begin” under “Benefits Available to Your Spouse or Other Beneficiary” for more 

information. 

This option provides the maximum monthly payment you can receive because 

it applies only to your lifetime. If you are married, your spouse’s notarized consent is necessary to elect this payment option. 

Please note that if your spouse outlives you, monthly income under this option does not continue.

Joint and Survivor Income Options with Cash Refund

The joint and survivor income options provide monthly income payments for the rest of your life and the life of your spouse. 

You can elect to have 50%, 75%, or 100% of your monthly income paid to your spouse after your death. If your spouse is still 

living when you die, the survivor income payments are paid over his or her lifetime. 

For example, if you elect the 50% joint and survivor option and receive $1,000 in monthly income while you are alive, upon 

your death, the monthly income payment will be reduced by 50% to $500 and paid over the remainder of your spouse’s life. 

If your spouse dies before you, your monthly retirement income payments continue to be $1,000 a month. If you both die 

before receiving all your net contributions* as income, your beneficiary will receive a lump sum payment of your remaining net 

contributions – referred to as a cash refund death benefit. 

Note that the election of a joint and survivor income option will result in a lower starting monthly retirement income amount 

when compared to the single life option.

SAMPLE
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Pricing Factors

Income share prices for Hartford Lifetime Income are updated daily and reflect your age and current interest rates. 

» Age: As you get older, the cost to purchase a new income share increases. For purposes of determining income share prices 

at your current age, your age is defined as your age on December 31st of the current calendar year. 

» Interest rates: When interest rates are high, your contributions will purchase more income shares because the per-share 

cost is reduced. Alternatively, when interest rates fall and income share prices are higher, your contributions purchase fewer 

income shares (refer to the “Interest Rate Risk” section for more information). This risk can be reduced by systematically 

purchasing income shares over time as interest rates fluctuate – a strategy called “dollar cost averaging.” Please note that 

dollar cost averaging does not guarantee a higher income payment stream.

Income payments from Hartford Lifetime Income do not vary (unless you elect the inflation protection feature by which your monthly 

income increases each year by 1-5%). Each income share you purchase has the same guaranteed lifetime monthly income – one 

income share provides $10 per month of income for life beginning at age 65. Once your monthly income amount has been 

adjusted for your actual income start date and benefit form, your payment settings are fixed for life. 

Fees

Income share prices include all insurance charges and expenses, inclusive of the guaranteed income, investment management 

fee, and operating expenses. There are no additional fees deducted from your purchase amount*. 

However, if any of your plan’s expenses are paid out of employee accounts, a portion of your income shares may be cashed out 

to pay plan administration expenses, just like any other plan investment. Please refer to your plan descriptions for details on 

how plan costs are handled.

* Your retirement plan account may reference an “annuity fee” or “liquidation fee”. This refers to the reduction applied when you elect to cash out your 

 income shares. See the next section of this product summary for an explanation of how the cash-out value is calculated.

How Are Income Share Prices Determined?

Additional Product Details

Income Share Value

Your Hartford Lifetime Income shares have an income share value which represents the current purchase value of your 

guaranteed income benefit. In other words, the income share value is what it would cost you to purchase the current income 

shares you own. This value is reflected as your account balance within your retirement plan account. It is based on the income 

shares you own multiplied by the current income share price (the “purchase price”) based on your year of birth. 

Cash-Out Value

Hartford Lifetime Income is a long-term investment designed to maximize the level of guaranteed monthly income payments. 

However, you may cash out your income shares before your retirement income starts. This flexibility is important should there 

be a change in your personal financial situation, your income needs or for any unforeseen need to access your retirement 

savings prior to retirement.
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If you do choose to cash out any income shares, a “cash-out value” formula is applied to the value of your shares. Here’s how it 

works. Hartford Life has agreed with the plan to buy back each income share you choose to cash out at a price (the “sell price”) 

that is equal to 96% of the current purchase price Hartford Life would charge you, at your current age, for a new income share. 

This is the cash-out value. Each income share you choose to cash out reduces your future guaranteed income. 

Hypothetical Example: 

If the current income share purchase price is $500 based on your current age, the sell price would be $480 ($500 x 96%). If you 

owned 100 income shares and chose to cash out all of them, you would receive $48,000 (100 income shares x $480). 

The cash-out value may be more or less than the amount you contributed, depending on how long you have owned your 

income shares and changes in interest rates. Generally, in a stable interest rate environment, the cash-out value will increase the 

longer income shares are held. Please see the “Interest Rate Risk” section for additional cash-out examples.

After you have received your income share certificate, you still have the option to cash out your income shares at the cash-out 

value in lieu of receiving retirement income payments. You can choose to have the lump sum proceeds paid directly to you or 

rolled over to a retirement savings account, such as an IRA. A lump sum paid to you would generally be subject to income tax, 

including a 10% penalty tax if you are under age 59 1⁄2. A rollover of your lump sum to another retirement savings account allows 

you to continue to postpone taxation of your retirement savings until they are paid to you.

After income payments start, cash-outs are not permitted. 

Please note that while income shares have a cash-out value, this is not the primary benefit of Hartford Lifetime Income. The 

primary purpose of Hartford Lifetime Income is to provide a guaranteed retirement income. 

Benefits Available to Your Spouse or Other Beneficiary

The benefits available to your spouse or other beneficiary are determined as follows: 

If You Die Before Retirement Income Payments Begin

If the beneficiary is your spouse or another individual, such as your child, he or she is eligible to receive inherited income shares 

provided the total net contributions (your contributions minus any cash-outs) for each beneficiary is $5,000 or greater. If you 

have both a designated Roth account and non-Roth account, each account must satisfy this requirement.

The inherited income shares are based on the income shares you own and are adjusted for the difference in ages between you 

and your beneficiary. For example, if he or she is younger than you, your beneficiary will receive more income shares; if older, 

fewer. Income from inherited income shares will be paid out to your beneficiary in the form of a single life annuity over his or her 

lifetime. 

In lieu of receiving inherited income shares, your beneficiary may elect to receive the net contributions as a lump sum payment. 

If you elected a beneficiary that is not an individual, such as your estate or a trust, it will receive the net contributions. 

Hypothetical Example:

Assume you contributed $90,000 over a 15-year period to Hartford Lifetime Income, never cashed out any income shares and 

did not initiate income payments. Also assume you have an accumulated total of 100 income shares when you die at age 60. 

Your spouse is your beneficiary and he or she can either receive the income shares or elect to take the net contributions. Assume 

your spouse is age 57. 
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Your spouse’s choice would be either: 

A) To convert 100 income shares to 120 income shares, which would provide him or her with $1,200 of monthly income for life 

at age 65. The conversion from 100 to 120 shares is based on your age and your spouse’s age when you die. The inherited 

income shares have a cash refund death benefit of $90,000. If your spouse dies before receiving a total income payment 

amount of $90,000, the difference will be paid to your spouse’s beneficiary. There is no cash-out value for inherited shares. 

B) Receive a lump sum amount of $90,000, equal to the net contributions. 

If You Die After Retirement Income Payments Begin

Your beneficiary will receive a lump sum payment of any remaining net contributions that have not already been paid to you or 

your spouse, if applicable – referred to as the cash refund death benefit. 

Risks of This Investment Option

All investments involve some risks. You should read this section carefully to understand the risks associated with this investment 

option.

The primary purpose of Hartford Lifetime Income is to provide you with a guaranteed retirement income stream that you cannot 

outlive. It should be viewed as a long-term investment. Several types of risks may affect your investment as summarized below. 

Mortality Risk

Mortality risk is the risk that you will die prior to retirement or during the first few years immediately following your retirement 

income start date. This risk is limited, as Hartford Life will pay your beneficiary a cash death benefit or, in certain circumstances, 

an adjusted income benefit. For example, if you die at a relatively young age, your beneficiary will receive what you contributed 

to Hartford Lifetime Income (minus any cash-outs or income payments). Should you live beyond the normal life expectancy, you 

may get back substantially more than what you contributed to Hartford Lifetime Income.

The table below shows the chance of living beyond certain ages. For example, a male age 65 has a 50% chance of living beyond 

age 85 while a female has a 50% chance of living beyond age 88. 

Inflation Risk

Inflation risk is the risk that the purchasing power of your fixed income payments will decrease as inflation increases the cost of 

living expenses.

Credit Risk

Credit risk is the risk that Hartford Life may not be able to honor its commitment. Hartford Lifetime Income is issued by Hartford 

Life Insurance Company.

Source: Society of Actuaries Annuity 2000 Mortality Tables

Male 

Age 65

Female 

Age 65

Couple 

Both Age 65

AGE 85 92 100

AGE 88 94 100

AGE 92 97 100

50%

50%

50%

25%

25%

25%
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Interest Rate Risk

Interest rate risk is the risk that you cash out all or a portion of your income shares after income share prices have come down 

due to an increase in interest rates. If you elect to cash out your income shares, you may have a gain or loss in value when you 

sell them. The cash-out value of the income shares you sell is computed using the current income share sell price at your age 

when the cash-out is made multiplied by the number of income shares cashed out. 

If interest rates have increased since you purchased your income shares, it is possible that the cash-out value will be less than the 

income share prices you paid. Generally, the risk is reduced if your age has increased since the time you purchased your income 

shares.

Example: 

Assume at age 45, you buy five income shares at $481 per share for $2,405. If you elect to cash out your five income shares at age 

55, your cash-out value can vary significantly. This variability depends primarily on the interest rate levels when you cash out. 

The following chart illustrates how this value can vary. As indicated, the key is the difference between interest rates when you 

purchased your income shares and interest rates when you cashed them out. 

Difference in Interest Rates Age 55 Income Share Price* Age 55 Cash-Out Value (Income 

Share Price x 96%) x 5 Shares

-4% $1,574 $7,555

-2% $1,201 $5,765

+0% $883 $4,238

+2% $707 $3,394

+4% $541 $2,597

 * Income share prices are as of March 31, 2009.

Other Important Information

Required Minimum Distributions

Income shares are subject to IRS required minimum distribution rules. A delay in starting up your income payments after age 70 

may subject you to a tax penalty of 50% of the amount of the delayed distributions. 

Likewise, inherited income shares are also subject to IRS required minimum distribution rules and your retirement plan rules. 

Following are the rules for when your beneficiary must begin his or her income payments: 

» Spouse Beneficiary: Income payments may begin earlier or later than age 65, but no later than the date on which you 

would have turned age 70. 

» Non-Spouse Beneficiary: Income payments must begin by December 1st of the year following your death. 

Actuarial Adjustment Factors

Hartford Life uses certain actuarial adjustment factors to:

» Adjust for income payment for start dates other than age 65

» Compute the income reduction for joint and survivor income options

» Adjust the income amounts for cost-of-living options

» Adjust the income amounts on inherited income shares for any age difference between you and your beneficiary

The actuarial adjustment factors are not guaranteed and are subject to change by Hartford Life.
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These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you 

should consult your own tax or legal counsel for advice. This information cannot be used or relied upon for the purpose of 

avoiding IRS penalties.

Payments Made by Hartford Life

Hartford Life may pay administrative service fees, expense reimbursements and additional compensation or payments 

(sometimes referred to as “revenue sharing” payments) to certain plan recordkeepers, transfer agents and similar service 

providers, in conjunction with the installation and maintenance of Hartford Lifetime Income shares on their service platforms. 

Hartford Life may also pay sales compensation to certain licensed sales agents. Any of these fees and payments may include 

asset-based compensation or fees. These payments are factored into the price of each income share. 

Application of Plan Rules

While Hartford Lifetime Income shares are in the plan, they are subject to the plan’s rules. Plan rules may require the liquidation 

of income shares for certain transactions (i.e., fees, vesting forfeitures, correction of excess contributions, etc.). Plan rules may also 

limit your ability to purchase income shares. 

Details on Certain Plan Transactions 

Following is a review of certain plan transactions and how they pertain to Hartford Lifetime Income. This information is subject 

to plan rules and any restrictions noted in your summary plan description: 

» Loans

 In general, if your plan offers a loan provision, your total vested retirement account balance (your plan investment options 

plus your Hartford Lifetime Income option) is taken into consideration when you apply for a loan. However, to protect your 

guaranteed income benefit, your Hartford Lifetime Income value is excluded from the loan amount you can receive. If your 

loan request exceeds the amount you have available to borrow, you have the option to transfer money out of your Hartford 

Lifetime Income option to another investment option within the plan to finance your loan. Transfers out of Hartford Lifetime 

Income are at 96% of the current income share value and result in a loss of your corresponding guaranteed income benefit. 

(See the “Cash-Out Value” section for details.)

» Withdrawals

 To determine your withdrawal options, you will need to review your plan rules and talk with a plan service representative. In 

general, if you do have a hardship withdrawal need, you may have the option to include or exclude your Hartford Lifetime 

Income balance. If you include it within your withdrawal request, your income shares will be cashed out at 100% of their 

current value. Liquidating your income shares will result in a loss of your guaranteed income benefit. 

» Annuity Transfers

 An annuity transfer is an in-kind nontaxable distribution to you of your vested Hartford Lifetime Income shares. Per your 

plan rules, you must meet an eligible distribution event to initiate an annuity transfer. Upon completion of your distribution, 

Hartford Life will send you a certificate of your guaranteed income benefits within 7-10 business days. 

Hartford Lifetime Income benefits available to a beneficiary are administered by Hartford Life. An annuity transfer of the 

Hartford Lifetime Income shares will allow Hartford Life to provide your beneficiary with his/her options. (See page 8 for 

details about beneficiary benefits.) 

Taxes

The income shares you accumulate within your employer’s plan are not taxable while held in the plan. Distributing your income 

shares out of the plan is not a taxable event. However, once you initiate your retirement income payments or cash out income 

shares, the taxable portion of your distribution will be subject to ordinary income taxes. If you choose to cash out income shares 

in lieu of retirement income payments, the taxable portion of your lump sum distribution is subject to 20% Federal withholding. 

If you are under age 591⁄2, you may be subject to a 10% early withdrawal tax penalty as well. 
About Hartford Life

Hartford Life Insurance Company

Hartford Life is a life insurance company engaged in the business of writing life insurance and annuities, both individual and 

group, in all states of the United States, as well as the District of Columbia. Our offices are located in Simsbury, Connecticut; 

however, our mailing address is P.O. Box 2999, Hartford, CT 06104-2999. We are ultimately controlled by The Hartford Financial 

Services Group, Inc., one of the largest financial service providers in the United States.

Hartford Lifetime Income benefits are provided by a group annuity contract issued by Hartford Life Insurance Company under 

the form number (HL-19933) countrywide. State-specific variations will have the state’s initials after the form number. 

“The Hartford” is The Hartford Financial Services Group, Inc. and its subsidiaries, including the issuing company, Hartford Life 

Insurance Company.

Glossary

Annuity: The lifetime income payments and any related 

benefits that are provided to you by purchasing income 

shares.

Beneficiary: A person who is entitled to receive the eligible 

benefit option upon your death. 

Cash-Out Value: The liquidation value of an income share. 

It is the amount Hartford Life has agreed to pay under the 

Contract, if you elect to cash out some or all of your income 

shares. It is at a price (the “sell price”) that is equal to 96% of 

the current purchase price Hartford Life would charge you, 

at your current age, for a new income share.

Cash Refund Death Benefit: A kind of death benefit equal 

to the dollar amount contributed to purchase your income 

shares minus any cash-outs you take and any income 

payments you or your joint annuitant receive.

Hartford Life or Hartford Life Insurance Company:

Hartford Lifetime Income is issued by Hartford Life 

Insurance Company, a part of The Hartford Financial Services 

Group, Inc. – one of the largest investment and insurance 

companies in America.

Income Share: A measure of the annuity purchased on your 

life. Each income share represents a $10 monthly annuity 

payable for life with a cash refund death benefit, starting at 

age 65. 

Income Share Certificate: Upon your election to distribute 

your income shares out of the plan, Hartford Life will issue an 

income share certificate to you. The certificate is your

statement of Hartford Lifetime Income shares you own and 

reflects the guaranteed income Hartford Life has promised 

to pay you. 

Income Share Value: The current purchase value of your 

guaranteed income benefit. The income share value is what 

it would cost you to purchase the current income shares you 

own. This value is reflected as your account balance within 

your retirement plan account. It is based on the income 

shares you own multiplied by the current income share price 

(the “purchase price”) based on your year of birth.

Income Start Date: The date retirement income payments 

begin. Income starts on the first day of the month you 

choose. The income start date must be before you attain 

age 70. 

Inherited Income Shares: This represents an alternative 

death benefit option available to your beneficiary if you die 

prior to commencing your retirement income payments. The 

income shares your beneficiary would receive are based on 

the number of income shares you have accumulated and 

adjusted for the difference in ages between you and your 

beneficiary. Inherited income shares have no cash-out value 

and must be taken as a single life income with cash refund. 

Net Contributions: The dollar amount contributed to 

purchase your income shares, reduced both by any cashouts you take and any income payments you or your joint 

annuitant receive. Net contributions are carried over to 

inherited shares for the purpose of determining the cash 

refund death benefit payable to the beneficiary’s beneficiary.

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