Future Income Generator
Help clients increase income potential as they approach retirement and feel confident knowing they’ll have protected lifetime income payments when they get there.
Client Profiles
Consider Pacific Odyssey® variable annuity with Future Income Generator for pre-retirees and retirees who:
- Need reliable supplemental income for the future.
- Want guaranteed growth for income purposes and can wait to take distributions.
- Are concerned about outliving their assets
Highlights
If your clients need to know they’ll have reliable future income, no matter how markets perform, Future Income Generator is an optional benefit that can be added to Pacific Odyssey for an additional cost.
Income Growth
- A 6% annual credit added to the protected payment base for up to 10 years assuming no withdrawals are taken.
- Automatic annual resets to lock in market gains. After a reset, annual credits are based on the new protected payment base for the remainder of the 10 years or until the first withdrawal is taken.
Income Certainty
Clients can count on a steady amount of protected lifetime income, beginning as early as age 59½.
The annual charge for Future Income Generator is a percentage of the protected payment base (deducted quarterly).
Single Life Option: 1.45%
Joint Life Option: 1.55%
Set at contract issue and will not change while the optional benefit is in effect.
The lifetime withdrawal percentage is based on the age when the first withdrawal is taken or when the first withdrawal is taken after a reset. For Joint Life, the younger spouse’s age is used to determine the lifetime withdrawal percentage. Guaranteed withdrawals may begin at age 59½.
| Age at First Withdrawal (or first withdrawal after a reset) |
Single Life | Joint Life |
| 59½–64 | 4.15% | 3.75% |
| 65–69 | 5.75% | 5.25% |
| 70+ | 6.00% | 5.50% |
Early Withdrawals
Prior to age 59½ (based on the younger spouse’s age for Joint Life), any withdrawal amount will reduce the protected payment base by either the amount of the withdrawal or on a proportionate basis, whichever results in the lower protected base. If an early withdrawal reduces the contract value to zero, Future Income Generator will terminate, and clients will not receive protected lifetime income.
Excess Withdrawals
If a withdrawal exceeds the protected payment amount, the protected payment base will be reduced on a proportionate basis for the amount in excess of the protected payment amount. If a withdrawal exceeds the protected payment amount and reduces the contract value to zero, the optional benefit will terminate.
Maximum Issue Age: 85
Investment Options
A variety of investment options are available including some with up to 100% equity exposure.
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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.
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.
Investors 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. These prospectuses should be read carefully before investing.
Annuities are long-term contracts designed for retirement. 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 will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.
Only one optional guaranteed minimum withdrawal benefit (GMWB) can be purchased with a variable annuity. The GMWB riders do not guarantee a rate of return or growth rate.
Future Income Generator is named “Guaranteed Withdrawal Benefit XXII Rider — Single Life” and “Guaranteed Withdrawal Benefit XXII Rider - Joint Life” in the contract rider.
Pacific Life Insurance Company reserves the right to change or modify any non-guaranteed or current elements. The right to modify these elements is not limited to a specific time or reason.
Riders will likely incur additional charges and are subject to availability, restrictions and limitations. Clients should be shown contract illustrations with and without riders to help show the rider’s impact on the policy’s values.
Pacific Life Insurance Company is licensed to issue insurance products in all states except New York. Product/material availability and features may vary by state.
Insurance products and their guarantees, including optional benefits, annuity payout rates, and any crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company, but they do not protect the value of the variable investment options. Look to the strength of the insurance company with regard to such guarantees because these guarantees are not backed by the independent broker/dealers, insurance agencies, or their affiliates from which products are purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the issuing company.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company.
The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.
Contract Form Series: 10-17800, 10-178OR
Rider Series: ICC19:20-1427, ICC19:20-1428
State variations to contract form series and rider series may apply.
For financial professional use only. Not for use with the public.
24-317A
VAQ2023-0225-RIA