Pacific Life has a way to increase your retirement income with their fixed indexed annuity, even if the markets don’t increase in your favor. Their Pacific Index Choice deferred fixed indexed annuity has been popular lately as those nearing or in retirement seek to protect their savings while hoping for growth in the markets. But in the event that the markets don’t increase, while your principal will still be safe, there is a new option available that still allows you to increase your retirement income.
The Enhanced Lifetime Income Benefit gives you the option to grow your income, regardless of what happens in the marketplace. Your income base will increase by 8% every year for ten years if you put off taking your withdrawals for an extended time. This can add up to a significant amount of money, especially for people who haven’t earned interest on their annuity due to a declining financial index.
The company press release gives an example of someone who purchases a $100,000 annuity with the Enhanced Lifetime Income Benefit. By waiting ten years before taking withdrawals, the 8% increase would give this person a $180,000 income base instead of the $100,000. Monthly payments vary based on the other options associated with the annuity, such as whether it is a lifetime income annuity or a death benefit annuity, but you could receive up to 7% annually from this fixed indexed annuity.
Written by Rachel Summit
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