Financial Professionals Financial professional news Rate changes for Principal ® Strategic Outcomes, Principal ® Strategic Income, and Principal ® Lifetime Income Solutions II
June 26, 2025

Rate changes for Principal® Strategic Outcomes, Principal® Strategic Income, and Principal® Lifetime Income Solutions II

Effective July 1, 2025, some rates will change for Principal® Strategic Outcomes, Principal® Strategic Income (GLWB only), and Principal® Lifetime Income Solutions II (GMWB only). These rate changes apply to all new contracts with an application signature date of July 1, 2025 and after.

What’s changing effective July 1, 2025?

Principal® Strategic Outcomes

Changes to standard rates

 PRODUCT DETAILS CURRENT NEW
Length Index Type Protection level Cap rate Participation rate Cap rate Participation rate
1-year S&P 500 Buffer 20% 9.50% 100% 8.5% 100%
6-year S&P 500 Buffer 10% Uncapped 107% Uncapped 105%
6-year S&P 500 Peak Buffer 20% Uncapped 95% Uncapped 90%
6-year Russell 2000 Buffer 10% Uncapped 115% Uncapped 110%

Principal® Strategic Outcomes

Changes to enhanced rates

 PRODUCT DETAILS CURRENT NEW
Length Index Type Protection level Cap rate Participation rate Cap rate Participation rate
1-year S&P 500 Buffer 20% 11.50% 100% 10.50% 100%
6-year S&P 500 Buffer 10% Uncapped 132% Uncapped 125%
6-year S&P 500 Buffer 20% Uncapped 125% Uncapped 120%
6-year S&P 500 Peak Buffer 20% Uncapped 120% Uncapped 110%
6-year Russell 2000 Buffer 10% Uncapped 140% Uncapped 130%
6-year Russell 2000 Buffer 20% Uncapped 125% Uncapped 120%

Principal® Strategic Income – Guaranteed Lifetime Withdraw Benefit (GLWB) rider

Changes to Initial Secure Income percentages

Level Income Option Initial Secure Income percentages will be decreased .25% across all age bands.
Tiered Income Option Initial Secure Income percentages will be decreased .25% for high-band only. There is no change to the low-band Initial Secure Income percentage.
  • GLWB percentages published in this supplement (PDF) are effective July 1, 2025 to July 31, 2025, and supersede any previous version. The supplement must accompany the current prospectus for any new applications signed during this time.
  • Segment rates for Principal® Strategic Income are not changing. View rates here: principal.com/strategicincome

Principal® Lifetime Income Solutions II – Guaranteed Minimum Withdraw Benefit (GMWB)

Changes to Flexible Income Protector (FLIP) rider, age 65-69 band only

If first withdrawal is taken less than or equal to five years after contract issue date… If first withdrawal is taken more than five years after contract issue date…
Old rate New rate Old rate New rate Old rate New rate Old rate New rate
Single Single Joint Joint Single Single Joint Joint
5.95% 5.70% 5.45% 5.20% 6.90% 6.65% 6.40% 6.15%
  • View the updated Principal® Lifetime Income Solutions II percentages in the GMWB charges and percentages prospectus supplement (PDF).
  • GMWB rates for New York are not changing.

Have pending new business that was signed prior to July 1, 2025?

Your clients may be able to receive the higher benefits. Learn more here:

Questions?

Contact our annuity sales team: 866-309-1623.