Defined Contribution Plans 

A defined contribution plan, such as a 401(k) plan, typically provides a lump-sum payment at retirement—yet many plan participants would prefer a steady stream of guaranteed lifetime income.

When you want to offer your 401(k) participants more distribution options than just a lump-sum:

  • As an optional plan distribution option, offer plan participants an institutionally priced fixed immediate annuity that can provide guaranteed lifetime income
  • Institutional pricing for annuities can be provided with a master annuity contract like Pacific Lifetime Income

When you want to protect your employees from running out of money during retirement:

  • Most employees don’t recognize how many years they may spend in retirement– for example, a married couple age 65 have a 50% chance that one of them will live to age 931
  • Annuity payment structures can include Joint and Survivor options with payments to the surviving spouse at 100%, 75%, and 50% of the original payment amount
  • Many other annuity options are also available

1 Centers for Disease Control and Prevention, National Center for Health Statistics, Table 27, Life expectancy at birth, at age 65 years of age and at 75 years of age, according to race and sex, 2003