ForeStructured Growth: How Global Atlantic's New Index-Linked Annuity Addresses Retirement Uncertainty

Retirement planning in an uncertain economic environment has become increasingly complex for American investors. Rising inflation, elevated interest rates, and persistent market volatility have left many retirees searching for investment solutions that don’t force them to choose between growth and protection. Global Atlantic, a prominent player in the U.S. annuity and life insurance sector, is responding to this challenge with an innovative offering designed to bridge this gap.

The Challenge Facing Today’s Retirees

According to Global Atlantic executives, the market sentiment is clear: Americans worry about how inflation, rate increases, and market swings will erode their retirement nest eggs. Traditional fixed-income strategies may not deliver sufficient growth, while equity-focused approaches expose portfolios to unacceptable downside risk. The need for a balanced solution—one that captures market upside while implementing meaningful loss protection—has never been more pressing.

Introducing ForeStructured Growth: A New Approach to Annuity Design

To address this demand, Global Atlantic has unveiled ForeStructured Growth, marking the first registered index-linked annuity (RILA) issued by a company subsidiary operating under this structure. The product represents a departure from conventional annuity design, combining multiple index-tracking strategies with innovative loss mitigation features that appeal to retirees seeking both opportunity and security.

The issuing entity, Forethought Life Insurance Company, brings decades of experience in crafting insurance-backed retirement solutions. As a subsidiary of Global Atlantic Financial Group—itself majority-owned by KKR, a global investment management heavyweight—the company has the financial foundation and investment expertise to support such a complex product.

Two Pillars: Growth Potential and Risk Mitigation

ForeStructured Growth operates on a straightforward premise: connect retirement savings to market performance while implementing guardrails against catastrophic losses.

Diverse Growth Options

The product offers 24 distinct index-linked crediting strategies, plus a traditional one-year fixed-rate option. Investors can choose allocations tied to major benchmarks including the S&P 500 Index and Nasdaq-100 Index. Beyond these widely-known measures, Global Atlantic provides access to three proprietary indices developed in partnership with established financial firms: the Fidelity US Corporate Strength Index (tracking approximately 100 large and mid-cap stocks), the Franklin US Equity Index (reflecting a Franklin Templeton investment strategy), and the UBS Climate Aware Equity Index (emphasizing companies with favorable environmental and governance profiles).

The actual growth potential available depends on the risk mitigation approach selected, allowing investors to customize their exposure-to-protection ratio.

The Adaptive Floor: A Market-First Protection Mechanism

The cornerstone of ForeStructured Growth’s risk management is the Adaptive Floor, an innovative indexed strategy that initially restricts losses to a maximum of 10% of the allocated amount. This protective feature works by establishing a “floor”—initially set at 90% of the allocation—that the contract value cannot breach due to negative index performance alone.

Beyond this initial protection, the Adaptive Floor incorporates a dynamic element: as market conditions allow, the strategy can incrementally lock in gains over time, effectively raising the floor progressively. This means investors don’t simply receive static downside protection; they benefit from a self-adjusting safety net that captures favorable market movements.

In addition to the Adaptive Floor, Global Atlantic offers complementary strategies featuring “buffers.” These alternative approaches limit losses to either the first 10% or 20% of potential declines over a specified period. Under a buffer arrangement, investors experience losses only if the underlying index performance falls below the chosen buffer threshold.

Additional Risk Considerations and Flexibility

As with all registered index-linked annuities, ForeStructured Growth involves complexity and carries inherent risks. Contract holders should understand that losses of principal are possible, and early withdrawals may incur surrender charges plus market value adjustments that could further reduce payouts.

Notably, certain events—including withdrawals, rider charges, reallocations, or activation of reset features—will adjust the protected amount under the Adaptive Floor, potentially altering the level of downside coverage.

The product’s tax treatment depends on whether it is held inside or outside a qualified retirement plan. Distributions from non-qualified contracts prior to the annuity commencement date are taxable to the extent of gain. Payments from IRAs follow standard IRA distribution tax rules. Additionally, if owned before age 59½, taxable distributions may be subject to a 10% federal income tax penalty. Given these complexities, prospective buyers should consult tax and legal professionals before committing capital.

About Global Atlantic and Its Parent

Global Atlantic Financial Group operates as a leading institution in American annuity and life insurance markets, serving both individual and institutional clients. The company’s differentiated investment and risk management capabilities, combined with established client relationships and a robust balance sheet, have positioned it to develop and distribute specialized retirement products.

Global Atlantic itself is majority-controlled by KKR, a preeminent global alternative investment manager with extensive experience across asset management and capital markets solutions.

The Path Forward

ForeStructured Growth is underwritten and distributed by Global Atlantic Distributors, LLC. The product is available through multiple contract and rider forms—specifically contracts FA1901SPDAX-01 and FA4131-01, along with rider forms FA4132-01 through FA4134-01 and additional ICC-designated riders.

Prospective investors should carefully review the official prospectus and product brochure before making investment decisions. These documents detail the complete feature set, potential benefits, associated fees, and product-specific risks. Because registered index-linked annuities are intricate financial instruments blending insurance and investment characteristics, thorough due diligence is essential.

The guarantees underlying ForeStructured Growth rest on Forethought Life Insurance Company’s ability to meet its obligations, contingent on the contract holder’s adherence to the product’s benefit rules.

For those seeking a middle ground between traditional fixed annuities and equity-based retirement strategies, ForeStructured Growth offers a structured option worth exploring—particularly in an environment where market volatility and inflation concerns continue to weigh on retirement planning decisions.