Aliso Viejo, Calif. (October 29, 2008) – Not saving enough for retirement ranks among the top concerns for small businessowners.1 Plus, 31% of business owners in the United States2 are 55 and older so the big question many have is “How can I make up for lost time in saving for my retirement?”
To help financial professionals help their business owner clients, Pacific Life now offers a sales kit that shows how using life insurance in defined benefit plans can address shortfalls in retirement savings. Focusing on small- to mid-size companies, the kit explains the advantages of a Qualified Combo Plan Using Life Insurance.
According to Alyce Peterson, vice president of marketing services for the Life Insurance Division of Pacific Life, the Qualified Combo Plan combines the use of a 401 (K) profit-sharing plan with a split-funded defined benefit plan so business owners can maximize the advantages of both plans to:
- Accumulate significant retirement savings in a shorter time frame
- Cost-effectively meet the non-discrimination rules for qualified plans
- Add potentially tax-deductible contributions to their retirement savings
- Provide personal life insurance needs using pre-tax dollars
“Planning for retirement is tougher than ever and business owners face the biggest challenge because most spend the early years building their businesses using available dollars,” Peterson explained. “When they reach that place where they can put money towards their retirements, their options for saving substantial amounts are limited and this is where life insurance used in a strategy like the Qualified Combo Plan can help make up for lost time.”
“The Qualified Combo Plan: The Successful Business Owner’s Secret for Last Minute Retirement Savings” kit also contains information on which clients may benefit from the strategy plus valuable marketing tips. Financial professionals can get a kit by contacting their Pacific Life representative or by calling 866-722-9555.
1 ShareBuilder Small Business Annual Retirement Trend Survey by Harris Interactive, November 2006
2 U.S. Census Bureau, September 2006
Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. With more than half of the 100 largest U.S. companies as its clients,3 Pacific Life is also a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities. For additional company information, including current financial strength ratings, visit the About Pacific Life section.
3 Client count data compiled by Pacific Life using the FORTUNE 500® list as of April 2008.
“Pacific Life” is 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 company is solely responsible for the financial obligations accruing under the products it issues. Product and rider guarantees are backed by the financial strength and claims paying ability of the issuing company and do not protect the value of the variable investment options. Variable insurance products are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third party broker-dealers.
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