How do I…

Secure Retirement Income?

Being happily retired looks different for everybody. Maybe you want steady retirement income that lasts or supplemental income to help you meet the unexpected in life. Establishing your goals now is the first step toward enjoying a more secure and fulfilling future.

Affording your future, starts now

Many times we assume retirement is far enough away that we don’t have to worry about it too much. At least, not quite yet. You’ve got time. You’ve got savings. You’ve got investments. But, if you really, truly want to live your most meaningful life and make all your plans and dreams for the future come true, will you actually have enough? Costs keep rising, social security shrinking, and your bucket list growing. Why not feel confident in your financial future now, instead of guessing whether you’ll be able to afford to achieve your goals. Know that you can.

What options do I have to supplement my financial portfolio?

Over time, market-based investments like stocks and bonds will both rise and fall. When you’re young, and have lots of time ahead of you, there’s a good chance your investments may recoup losses. But the closer you are to using your portfolio for income, the more you may want to be protected from market losses. That’s one reason why supplementing your portfolio with financial products that guarantee protection from market losses—for example, CDs, fixed annuities, and certain life insurance—can help make your retirement years more secure. Talk to your financial professional to learn more.

When should I start taking Social Security income?

Procrastination can be a bad thing … unless you’re talking about Social Security. While you can start taking Social Security as early as age 62, waiting longer will mean a larger amount in your Social Security checks. However, there are many factors to consider when thinking about the “right time” to begin your benefits. If your health isn’t good or you need Social Security to meet everyday living expenses, you might want to begin earlier rather than later. Talk to your financial professional. He or she can help you make a decision that’s right for you.

How do I determine the best income strategy for me?

Work with your financial professional. He or she can help you determine how much income you may need to create a life that’s meaningful to you, and the financial products for generating that income.

How long do I need my savings to last?

No one can predict how long they’ll spend in retirement, but many people today live well into their 70s, 80s, and even 90s. That’s why it’s important to have financial products that help you grow your money as much as possible and, down the road, turn it into income that can last your entire life.

How much can I expect to get from Social Security?

Social Security can be a great foundation for a long-term financial strategy. But for many, Social Security alone is not enough to provide a comfortable lifestyle. That’s why building your savings is so important. It’s the combination of your Social Security and savings that will determine the level of financial freedom you’ll have during retirement. To find out more about how much Social Security you can expect, visit the My Social Security website to get your personal Social Security statement.

How important is it for me to create lifetime income?

Think about Social Security. Now, imagine it doesn’t exist. How comfortable would you feel without the guaranteed lifetime income that Social Security provides? Creating lifetime income gives you a firm financial foundation on which to build a comprehensive long-term financial strategy, and products like annuities supplement Social Security with even more guaranteed lifetime income.

What is a retirement income strategy?

During our professional careers, investing is mostly about growing the amount of money we have. But when we retire, the emphasis often shifts to the goal of creating income. Specifically, how can we ensure our assets will provide enough income throughout the rest of our years to support a life that’s meaningful to us? Your financial professional can help you determine how much income you may need and how to create a strategy to meet your goals.

How does indexed universal life insurance work?

Indexed universal life insurance (IUL) is a type of cash value life insurance that provides death benefit protection and cash value growth potential that’s based in part on the performance of major stock market indexes. IUL does not directly participate in any stock or equity investments. Instead it credits interest to the cash value based in part on the performance of an index, excluding dividends.
When the index posts a gain, the policy credits a positive rate up to the policy’s stated current growth cap rate. When the index posts a loss, the policy caps the loss at the guaranteed minimum interest crediting rate, preventing a market-based loss. 
 

How does cash value life insurance work?

Cash value life insurance offers flexible premiums, flexible death benefit amounts, and the ability to access the policy’s available cash value via federal income tax-free policy loans and withdrawals. Your policy will stay in force as long you have sufficient cash value to cover your monthly policy charges. 

How do I supplement my Social Security income?

Creating a sound retirement strategy is a bit of a balancing act. Market-based investments, such as stocks, bonds, and mutual funds, may be important because they can help you grow your money, outpace inflation, and provide cash for unexpected expenses. But you also may want a certain level of guaranteed income. In other words, income you can count on to keep coming your way no matter how markets perform or how long you live. Social Security provides income like that. So do pensions. But if you’d like even more guaranteed income, talk to your financial professional about whether an annuity may be right for you. Annuities are the only financial product you can buy that provide guaranteed, lifetime income, and there are a variety you can choose from.

What is one way to create sustainable income?

While accumulating assets, you likely diversified among different types of investments to help weather varying market conditions. Similarly, when planning for sustainable income, it may be best to diversify among multiple products, such as mutual funds, deferred annuities, cash value life insurance, and guaranteed income solutions such as immediate annuities. While no single product can provide for all retirement goals, together, these products can help you: (1) manage the challenges you’ll face in retirement, (2) maximize cash flow and sustain it for life, (3) provide access to your money, and (4) help meet legacy goals.

How can I generate income from my investment portfolio?

As you move towards retirement, you may want to consider how much of your portfolio you want to devote to growing your assets versus generating reliable income for everyday expenses. Typically, generating more income involves reallocating your assets for a greater emphasis on fixed-income and/or guaranteed-income products. Fixed-income products may include bonds or CDs while guaranteed income products include a variety of annuities. You may also want to consider increasing the number of dividend-paying stocks you own. Your financial professional can help you decide on an appropriate mix of financial products for your specific needs and lifestyle.

How are retirement assets generally taxed?

Taxes can impact how quickly your savings may grow. A savings instrument that accumulates tax-deferred will accumulate faster than one where growth is taxed annually. Taxes can also impact how much you get to keep once you begin taking income. Distributions from annuities, qualified retirement plans like 401(k), pension plans, and IRAs are generally taxed at income tax rates. Assets outside retirement plans like stocks, mutual funds, and real estate are generally taxed at capital gains tax rates. There is an often overlooked source that offers tax-free income—Roth IRAs, municipal bond interest, and cash value life insurance death proceeds, loans, and withdrawals.

Products To Help You Save

Variable Annuity

A variable annuity is designed to provide reliable monthly income that lasts for life. It is a long-term investment that can help you grow your retirement savings faster by investing in a diverse selection of investment options while deferring taxes until you take income. The market-based investment performance will be variable, meaning it can go up or down. Variable annuities also allow you to provide for loved ones through a guaranteed death benefit.

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Fixed Indexed Annuity

A fixed indexed annuity is designed to provide reliable monthly income that lasts for life. It protects your principal, while providing growth opportunity based on the positive movement of an index, such as the S&P 500® index. Fixed indexed annuities enable you to grow your retirement savings faster by deferring taxes until you take income, creating lifetime income, and providing for loved ones through a guaranteed death benefit.

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Fixed Annuity

A fixed annuity can help you create reliable monthly income that lasts for life. It is designed to protect your principal while providing steady, reliable growth based on a fixed rate of interest. Fixed annuities also enable you to grow your retirement savings faster by deferring taxes until you take income, creating income that lasts for life, and provide for loved ones through a guaranteed death benefit.

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Mutual Funds

Offers the opportunity to meet savings goals by growing money through a professionally managed portfolio of market-based investments (e.g., stocks, bonds, and more).

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Deferred Income Annuity

A fixed, deferred income annuity is designed to provide reliable income that begins in the future, on a date that you choose. With it, you can tailor income to fit your needs and create income that lasts for life.

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Cash Value Life Insurance

Offers death benefit protection with tax deferred cash value build up, and ability to access the cash value via policy loans and withdrawals. 

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Plan now, so you’re ready later

For you, family is one of the most important things in your life. You take care of them. They take care of you. Making sure that they’ll always be taken care of, no matter what happens.

LEARN MORE

Save Enough for My Future

You don’t know what the future has planned for you, but you want to be prepared for the unexpected and be able to achieve your goals.

LEARN MORE

Protect and grow my business

You want your business to maintain its competitive edge. Attracting talent and building a succession plan for the future means you can ensure your business stays in stable hands.

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In order to sell life insurance, a financial professional must be a properly licensed and appointed life insurance producer.

For tax-free death benefit proceeds: For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Sec. 101(a)(1). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Situations include, but are not limited to: the transfer of a life insurance policy for valuable consideration unless the transfer qualifies for an exception under IRC Sec. 101(a)(2)(i.e. the transfer-for-value rule); arrangements that lack an insurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Sec. 101(j).

For tax-free distribution: For federal income tax purposes, tax-free income assumes, among other things: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death (any outstanding policy debt at time of lapse or surrender that exceeds the tax basis will be subject to tax); (3) withdrawals taken during the first 15 policy years do not cause, occur at the time of, or during the two years prior to, any reduction in benefits; and (4) the policy does not become a modified endowment contract. See IRC §§ 72, 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.

Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company and do not protect the value of the variable investment options, which are subject to market risk.

This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its affiliates, their distributors and respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.

Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge and a market value adjustment (MVA) also may apply. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.

Under current law, a nonqualified annuity that is owned by an individual is generally entitled to tax deferral. IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax‑deferred. Therefore, a deferred annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These include lifetime income and death benefit options.

All investing involves risk, including the possible loss of the principal amount invested. The value of the variable investment options will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please see the prospectus for a detailed description of investment risks.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.

Pacific Life's Home Office is located in Newport Beach, CA.

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