Pacific Life Offers New Tools to Help
Manage Retirement Savings and Address Tax Challenges
Newport Beach, Calif. (June 18, 2014) - Last year's federal tax hikes, coupled with several new forms of taxation, could impose additional drag on a client's overall retirement plan performance. To help, Pacific Life Insurance Company introduced several new features for variable annuities, which are contracts between clients and an insurance company, that can help grow, protect, and manage retirement savings in a tax-advantaged way.
"Addressing these tax challenges may help preserve investment earnings, which can translate into better results across all three phases of retirement income planning: asset accumulation, income distribution, and leaving a financial legacy for heirs. We've introduced new variable annuity features that enhance these opportunities," says Christine Tucker, vice president of marketing for Pacific Life's Retirement Solutions Division.
Pacific Life's variable annuities now offer:
- Fourteen new investment options, including exclusive lower-cost strategies with BlackRock iShares® and options from managers such as American Funds®, Fidelity®, and Lord Abbett. Like the existing investment options, these additions also offer asset classes and investment styles inside a tax-deferred vehicle that may help address investment performance drag due to taxes.
- A new optional Earnings Enhancement Death Benefit (EEDB), available for an additional cost, designed to assist beneficiaries in offsetting taxable gains upon receiving a death benefit from a variable annuity contract.
See the prospectus for more information regarding variable annuity investment options and death benefits.
In addition, financial advisors now have access to:
- An innovative online tool called the Pacific Life Tax Deferral Analyzer that enables advisors to input basic client data and then show a client the effects of tax deferral on accumulating assets as well as ways to provide retirement income, and leave a financial legacy for beneficiaries.
- A variety of print and digital resources, including a client video that describes the core advantages of a variable annuity in several quick, easy-to-understand chapters.
Variable annuities are long-term investments designed for retirement that can help grow retirement savings faster through the power of tax deferral, protect against inflation, and market volatility through a diverse choice of investment options, to help leave a financial legacy. The value of the variable investment options will fluctuate and, when redeemed, may be worth more or less than the original cost. Every variable investment option has some degree of risk depending on what it invests in and what strategies it uses. While all variable investment options are subject to market risk, some investment options may experience greater volatility than others. The variable investment options are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC). It is possible to lose money by investing in these portfolios.
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, death benefit options, and the ability to transfer among investment options without sales or withdrawal charges.
For more information on variable annuities, financial advisors are invited to visit www.PacificLife.com or talk to a Pacific Life consultative wholesaler at (800) 722-2333.
About Pacific Life
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. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit Pacific Life at www.PacificLife.com.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of May 2013 is compiled by Pacific Life using the 2013 FORTUNE 500® list.
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 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.
This material must be preceded or accompanied by the product prospectus. Contact your financial advisor or visit www.PacificLife.com for more information, including product and underlying fund prospectuses that contain more complete information about Pacific Life and a variable annuity's risks, charges, limitations, and expenses, as well as the risks, charges, expenses, and investment goals of the underlying investment options. Read them carefully before investing.
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 also may apply. Withdrawals may reduce the value of the death benefit and any optional benefits.
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. Insurance product and rider guarantees, including optional benefits and any fixed subaccount crediting rates or annuity payout rates, 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. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.
Third-party trademarks and service marks are the property of their respective owners. American Funds Distributors, Inc., BlackRock Distributors, Inc., Fidelity Distributors Corporation, Lord Abbett Distributor LLC, and the products each distributes are not affiliated with Pacific Life or Pacific Select Distributors, Inc.
Variable insurance products, as well as shares of the Pacific Select Fund, are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company (Newport Beach, CA), and are available through licensed third-party broker/dealers.