In an annuity, everything you earn is tax‐deferred, so your money grows faster. If you purchase an annuity with after‐tax money, only a portion of your income will be taxable, spreading out your taxes over time. And, in a variable annuity, you can change your investment strategy without tax consequences.
In certain annuities, you can grow money first and then turn it into reliable income. While your money grows, everything you earn will be tax deferred, which helps money build up faster. Plus, you'll have choices in how your annuity grows. Some annuities offer fixed interest rates; others enable you to select from among a variety of Interest-Crediting Options.
Do you want to leave as much as possible to your loved ones? If you die before turning your annuity into lifetime income, a death benefit payment will go to your loved ones to help ensure they are protected. Plus, you can choose how and when they will receive their payments.
An annuity provides steady, reliable monthly income for your entire life. And if you want that income to start now, or within a year from now, consider an immediate annuity. It's the simplest, most straightforward type of annuity you can buy. And you'll know from day one how much income you will receive.
You're planning ahead? That's good! Deferred annuities enable you to grow your money first, tax-deferred, and then take retirement income down the road. You can choose income guaranteed to last for a specific time period or that lasts your entire life.
Enable you to allocate money among a broad range of market-based investment options, providing you growth potential.
Provide opportunities to grow money based on the movement of an index. This may allow you to earn a higher interest rate than a traditional fixed annuity. You cannot lose money because you’re not invested in the market.
Provide steady, reliable income that begins within a year and can last for as long as you live.
Provide predictable growth based on a fixed rate of interest.
Provide steady, reliable income that begins on a future date and can last for as long as you live.
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Start building your nest egg early to prepare for the unexpected.
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.
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.
You should carefully consider a variable annuity’s risks, charges, limitations, and expenses, as well as the risks, charges, expenses, and investment goals of the underlying investment options. This and other information about Pacific Life are provided in the product and underlying fund prospectuses which are available from your financial professional or by clicking here. 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 and 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.
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.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Variable and fixed annuity products are available through licensed third parties.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency
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