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Retirement, Investments, & Insurance for Individuals Invest & Retire Annuities Principal ® Strategic Income
Principal® Strategic Income

A registered index-linked annuity (RILA)

Invest now. Retire with income later.

A happy man and his grandchild walking outdoors.
What’s an income-focused RILA?

An income-focused RILA is designed to provide guaranteed lifetime income for retirement. When you’re ready to retire you’ll have a source of protected money that’s guaranteed for as long as you live.

More on how a RILA works
How you create future guaranteed income

The Secure Income Protector rider is what helps create guaranteed lifetime income. The rider comes automatically with your contract and establishes an income benefit base that’s protected from market losses.

For example, if you purchase a contract with $50,000, then your income benefit base also starts at $50,000. The performance of the investment segment(s) you choose is evaluated on each segment end date, and any gains are added to your overall account value. These gains “step up” into your income benefit base, and are locked in. Even if future segment performances result in losses, the amount of your benefit base won’t go down.

Understanding deferral credits

Future income can also grow through deferral credits. When you purchase your contract, you’ll receive an initial secure income withdrawal percentage, which is based on your age at time of purchase. For every year you don’t take a withdrawal you’ll receive an additional deferral credit. The longer you wait to take money, the higher you’re final income withdrawal percentage will be.

This graph shows how deferral credits work to increase a client’s secure income withdrawal percentage.

Rates are hypothetical and for illustrative purposes only.
Create guaranteed lifetime income

When you decide to start taking money from your annuity, your benefit base and withdrawal percentage work together to calculate the amount of your annual guaranteed income.

Other factors that can affect the amount of guaranteed income you receive include:

  • Your age when you start taking income.
  • Whether you want income for one or two people.
  • What income option you choose – level or tiered.
Level income option

The amount of guaranteed lifetime income you receive is never reduced, regardless of your account’s accumulated value.

This graph shows that with the level income option the client’s guaranteed income amount remains the same for their lifetime.
Tiered income option

This option provides higher income when you first start income payments, then decreases when your account value reaches zero.

This graph shows how the tiered income option reduces the client's guaranteed income when their account balance reaches zero.

Rates are hypothetical and for illustrative purposes only.

Footnotes

As long as no excess withdrawals have been taken.

May not be available in all states or with all broker dealers.

Principal® Strategic Income does not directly participate in any stock, equity investments or index. It is not possible to invest directly in an index.

Investing involves risk, including the possible loss of principal.

Before investing in registered index-linked annuities, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and underlying investment options. This and other information is contained in the free prospectus which can be obtained from your local representative or online at principal.com. Please read the prospectus and, if available, the summary prospectus carefully before investing.

IMPORTANT CONSIDERATIONS

Index-linked deferred annuity contracts are complex insurance and investment vehicles. This contract is a security and there is a risk of substantial loss of principal and earnings. The risk of loss may be greater when early withdrawals are taken due to any charges and adjustments applied to such withdrawals. These charges and adjustments may result in loss even when the value of a segment option has increased. Clients should consult with a financial professional about the appropriateness of this product based on their financial situation and objectives.

There is risk that this segment interim value could be less than the original premium payment even if the applicable Index has been performing positively. The buffer or floor rate provides limited protection. There is a possibility of a significant amount of loss of the total premium payment, credited interest and prior earnings. In the index-linked segment options it is possible that the total loss could be 100%. If clients choose to allocate amounts to an index-linked segment option subject to a cap rate, that rate limits the positive index change, if any, that may be credited to the annuity for a given segment term. The participation rate limits the positive index change, if any, that may be credited to the annuity for a given segment term. It is possible to receive less than the full protection of the buffer rate or floor rate. Once a segment lock-in is executed, it is irrevocable for that segment term. A lock-in will not be applied retroactively and can only be exercised for the entire segment option. A segment lock-in may only be exercised once per segment term for each index-linked segment option. There is no guarantee that any particular segment option or index will be available during the entire period.

Withdrawals will reduce the contract value and death benefit. Some withdrawals may be subject to additional charges and adjustments. Withdrawals before age 59½ may be subject a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.

Guarantees are based on the claims-paying ability of Principal Life Insurance Company®. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not obligations of, nor backed by, the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.

Contract rider descriptions are not intended to cover all restrictions, conditions, or limitations. Refer to rider for full details. Riders subject to state availability and may be subject to an additional charge.

Annuity products and services are offered through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392, principal.com.

Annuities have limitations. They are long-term vehicles designed for retirement purposes. Annuities are not intended to fund short-term savings goals.

Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and services marks of Principal Financial Services, Inc., in various countries around the world.

© 2025 Principal Financial Services, Inc.

Contract: SF 1027, SF 1028, SF 1029, SF 1031, SF 1032, SF 1053, SF 1054, SF 1055, ICC13 SF 932 / SF 932