Nassau Flex Forward Annuity – Customizable Income for Every Retirement Stage

The Flex-Forward Income Benefit’s two-phase structure is its most distinctive feature and the primary reason it is positioned as a Social Security optimization tool. When the rider is exercised, the client makes two simultaneous elections: the Early Income Amount (a higher-than-lifetime income payment, subject to a contract-defined maximum and minimum) and the duration of the Early Income Period — up to 8 years. During the Early Income Period, the annuity pays the elected higher amount. When that period ends, it transitions automatically to the Lifetime Income Period, paying the Lifetime Income Amount for as long as the owner lives — even if the contract value reaches zero. The deliberate trade-off built into the design: the more generous the Early Income Period (longer duration or higher amount), the lower the resulting Lifetime Income Amount. The optimal strategy is to match the Early Income Period to the precise number of years remaining until the planned Social Security claiming date. A buyer who is 62 and plans to claim Social Security at 70 might elect a 7-year Early Income Period — receiving the higher annuity income from ages 62–69, then transitioning to the lower Lifetime Income Amount starting at age 70 when the maximized Social Security benefit activates. The combined income from the higher annuity payments plus delayed Social Security credits can significantly exceed what would be received from an earlier Social Security claim plus a lower annuity income. This strategy is not endorsed by or connected to the Social Security Administration — Nassau explicitly disclaims any government affiliation — but the coordination of private income streams with public benefit timing is a recognized retirement planning strategy that this product is specifically designed to support.

The Flex-Forward Income Benefit starts with a 10% Income Benefit Base bonus at issue — meaning the starting income calculation base is 110% of the single premium. A 10% simple interest roll-up is then applied annually for up to 10 years, adding 10% of the original bonus-adjusted base each year. For a $100,000 premium: Income Benefit Base at issue = $110,000 (after 10% bonus); annual roll-up credit = $11,000 per year (10% of $110,000); after 10 years of full deferral, the Income Benefit Base = $220,000 ($110,000 + 10 × $11,000). This compares to competing products with different structures: the North American Income Pay Pro (8% compound, no upfront bonus — $100,000 grows to ~$215,892 after 10 years compound); the Aspida Synergy Choice Income (25% upfront bonus to benefit base + 10% simple roll-up — $100,000 becomes $125,000 at issue, then $12,500/year roll-up; after 10 years = $250,000); the F&G Safe Income Advantage (7.2% compound, no upfront bonus — $100,000 grows to ~$200,000 after 10 years compound, no additional charge). The Nassau Flex Forward’s income base at 10 years ($220,000 before fees) is competitive on paper, but the 0.95% annual rider fee deducted from the contract value over 10 years reduces the accumulation value available as the death benefit alongside the income. The more important comparison for any income FIA is projected annual income at the intended activation age — not just the income base level — because the Lifetime Withdrawal Percentage applied to the income base is what determines the actual annual payment. A side-by-side income illustration at your specific age, premium, and intended income activation date is the only reliable tool for this comparison.

Nassau Life and Annuity Company holds an AM Best Financial Strength Rating of B++ (Good) as of May 2026. B++ is AM Best’s 5th tier of 13 — it reflects adequate financial strength but sits below the A- threshold (4th tier) that most experienced independent advisors and institutional investment policies specify as the minimum for new annuity purchases. For a 10-year income commitment where guaranteed lifetime payments may continue 20–30 years beyond the surrender period, the carrier’s financial strength over that extended horizon is a foundational evaluation criterion. The B++ rating does not indicate imminent distress or claim-paying inability — it reflects a carrier that is financially adequate but has less financial strength cushion than A-rated or A+-rated alternatives. Nassau Financial Group has actively raised capital in recent years, and KBRA’s BBB+ rating with cited positive momentum (enhanced liquidity, disciplined asset-liability management) provides a second-agency data point. However, KBRA’s rating scale is not directly comparable to AM Best’s scale, and the AM Best B++ remains the primary rating for most advisor and consumer evaluation purposes. The practical guidance for Nassau Flex Forward buyers: for allocations within state guaranty association coverage limits (typically $250,000 per insurer in most states), the B++ rating is a factor to acknowledge and weigh, but it is not necessarily disqualifying. For larger allocations, clients who require A-rated carrier strength for all long-term income commitments, or clients whose plans are particularly sensitive to the carrier’s long-term claims-paying ability, A-rated alternatives such as the F&G Safe Income Advantage (AM Best A), American Equity IncomeShield 10 (AM Best A), or A+-rated products from Midland National, North American, and Pruco Life are more appropriate.

The Return of Premium feature is a death benefit provision that guarantees beneficiaries will receive no less than the original premium minus withdrawals and applicable fees, even if the contract value has been reduced by years of the annual rider fee, zero index credits, or other charges. It is a contract-value floor on the death benefit. The Income Benefit Base is entirely separate: it is the calculation value used to determine the guaranteed lifetime income payment amount and the rider fee — it cannot be surrendered as a lump sum and is not the death benefit. These are two different figures that serve two different purposes. The Return of Premium floor is meaningful because the 0.95% annual rider fee deducted from the contract value over 10 years of deferral can reduce the contract value below the original premium in poor crediting environments. Without a Return of Premium floor, a buyer who passed away after 10 years of deferral in a poor market environment — having paid 0.95% per year in rider fees with minimal credited interest — might receive a death benefit less than their original investment. The Return of Premium floor prevents this outcome. However, the protection is only from the premium minus withdrawals — so withdrawals taken before death reduce the floor accordingly. The Return of Premium feature applies to the death benefit; it does not protect the contract value during the surrender period from surrender charge reduction on early exits.

The Nassau Income Accelerator offers three rider options, each targeting a different income planning profile. The Flex-Forward Income Benefit (the subject of this page’s primary focus) is the most structurally complex: it provides a two-phase income structure with a customizable Early Income Period (up to 8 years of higher income, chosen at rider exercise) followed by a lower Lifetime Income Amount for life. It is best suited for buyers with a specific Social Security optimization timeline in mind — the Early Income Period duration should match the years remaining until the planned Social Security claiming date. Issue ages are restricted to 50–70 of the youngest covered person; rider fee is 0.95% of the Income Benefit Base annually. The Income Horizon: Early rider provides levelized (consistent, fixed-level) guaranteed lifetime income for buyers who are planning to activate income relatively soon after purchase or within a shorter deferral window. This is the simpler structure for buyers who want predictable, consistent income from a defined start date rather than a two-phase design. The Income Horizon: Later rider provides levelized guaranteed lifetime income for buyers who plan a longer deferral period before income activation — allowing the income base to build over a longer accumulation phase before the Lifetime Withdrawal Percentage is applied. The correct rider choice depends on: (1) when you plan to start income; (2) whether you have a specific Social Security claiming strategy that benefits from higher near-term annuity income; and (3) whether you prefer income simplicity (consistent level payments) or income flexibility (higher early, lower later). Only one rider may be elected per contract, and riders must be selected at issue — the decision cannot be revisited after the contract is issued.

The Nassau Flex-Forward Income Benefit and the Forethought Income 150+ SE Lifestyle Payment Option are both income FIA features that provide higher income in early retirement and lower income later — making them structurally similar in concept but different in design and control. The Lifestyle Payment Option on the Income 150+ SE (not available in California) provides a prescribed schedule set by the carrier: payments start higher, level off, and then decrease in later years based on a carrier-defined formula. The buyer chooses this option at income activation but has no control over the specific amounts or transition timing. The Flex-Forward Income Benefit gives the buyer explicit control over both the Early Income Amount (subject to contractual limits) and the Early Income Period duration (up to 8 years) at rider exercise. This client-controlled design means the Flex-Forward can be precisely calibrated to a specific Social Security claiming date, while the Lifestyle Payment Option’s schedule is not adjustable by the client. The Flex-Forward also has a defined floor: the Lifetime Income Period after the Early Income Period provides guaranteed lifetime payments for life regardless of account value — a longevity protection that mirrors the Lifetime Payment Option structure. Carrier considerations are also relevant: Forethought Life (Global Atlantic) holds AM Best A, compared to Nassau’s B++. For buyers whose primary objective is the Social Security bridge strategy with specific year-by-year income control, the Flex-Forward’s design is more configurable. For buyers who want the two-phase concept without the complexity of selecting both the amount and duration, the Lifestyle Payment Option at a stronger carrier provides a simpler implementation of the same general concept.

The Nassau Flex Forward Income Benefit is most appropriate for buyers who: have a specific Social Security optimization plan with a defined claiming date that matches the Flex-Forward’s Early Income Period duration; are within the eligible issue age range (50–70 of youngest covered person); are comfortable with the AM Best B++ carrier rating for a 10-year commitment; want the unique client-controlled two-phase income structure rather than a fixed roll-up rate or single-phase income; and are making an allocation within state guaranty association coverage limits where the B++ rating is appropriately contextualized. It is particularly compelling for buyers who are explicitly modeling a Social Security bridge strategy and want the income period duration flexibility that competing products with fixed lifetime income structures do not offer. The Nassau Flex Forward is less appropriate for buyers who: require A-rated or A+-rated carrier financial strength as a minimum — in which case the F&G Safe Income Advantage (7.2% compound EGMWB, A-rated, no rider charge), North American Income Pay Pro (8% compound, A+), or Midland National Income Planning Annuity (A+) are more appropriate; buyers who do not have a specific Social Security optimization timeline (for whom the Flex-Forward’s two-phase complexity does not add value over a simpler levelized income structure); buyers in Maine or New York (not available); and buyers who want to make additional premium payments after issue (single premium only). At Diversified Insurance Brokers, we walk clients through detailed income projections, rider costs, liquidity schedules, and side-by-side comparisons so decisions are data-driven and aligned with long-term objectives.