Amid predictions that interest rates may soon be on the rise, some near-retirees may question the effectiveness of purchasing a deferred fixed annuity in today’s environment. However, a new white paper published by Pacific Life Insurance Company and written by Professor Wade D. Pfau finds that the reasons to buy now may be wide-ranging and compelling.
Why Purchase a Deferred Fixed Annuity in a Rising Interest-Rate Environment? explores the relationship between interest rates, bonds, and fixed annuities in the context of a household approaching retirement. Professor Pfau illustrates why deferred fixed annuities can be an important component of a retiree’s fixed-income strategy, and may provide several advantages over bonds.
“Clients want accurate, well-researched information about the options for preserving assets and generating sustainable income for retirement years. This new white paper provides important details about deferred fixed annuities versus bonds, and we’re excited to be offering it as a resource for clients and financial professionals,” says Christine Tucker, vice president of marketing for Pacific Life’s Retirement Solutions Division.
Wade D. Pfau, Ph.D., CFA, is a professor of retirement income at The American College of Financial Services. He also serves as a principal and director for McLean Asset Management and chief planning strategist for software provider inStream Solutions. He holds a doctorate in economics from Princeton University and publishes frequently in a wide variety of academic and practitioner research journals on topics related to retirement income. His research has been discussed in The Economist, New York Times, Wall Street Journal, Time, Kiplinger’s, and Money Magazine.
Why Purchase a Deferred Fixed Annuity in a Rising Interest-Rate Environment? is available to financial professionals by calling Pacific Life at (800) 722-2333 or by visiting www.Annuities.PacificLife.com.
Celebrating its 150th anniversary in 2018, 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. Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of June 2017 is compiled by Pacific Life using the 2017 FORTUNE 500® list.
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. Insurance product and rider guarantees are backed by the financial strength and claims-paying ability of the issuing company.
The American College of Financial Services was founded in 1927 and is the nation’s largest nonprofit educational institution devoted to financial services. Holding the highest level of academic accreditation, The American College has educated one in five financial advisors across the United States and offers prestigious financial-planning designations such as the Retirement Income Certified Professional® (RICP®), Chartered Life Underwriter® (CLU®), Chartered Financial Consultant® (ChFC®) and education leading to the Certified Financial Planner™ (CFP®) certification. The College’s faculty represents some of the foremost thought leaders of the financial-services profession. For more information, visit www.TheAmericanCollege.edu.
