Pacific Life Teams Up with Fidelity Investments on New Retirement Solution to Provide Guaranteed Lifetime Income

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Media Contact:
Jesse Page
(949) 219-4575
jpage@pacificlife.com

Pacific Life Teams Up with Fidelity Investments on New Retirement Solution to
Provide Guaranteed Lifetime Income

NEWPORT BEACH, Calif. – Jan. 30, 2024 – Pacific Life announced today a collaboration with Fidelity Investments to provide Pacific Lifetime Income (a single premium immediate annuity or SPIA) for Fidelity's new retirement income solution, Guaranteed Income Direct (GID). The strategic collaboration marks a significant step in addressing the evolving needs in retirement planning and the increasing demand for retirement income solutions that are easily accessed from an employer-sponsored plan.

GID is an innovative retirement income solution that allows individuals to convert a portion of their defined contribution plan savings into an annuity, ensuring consistent, guaranteed payments throughout their retirement journey. Pacific Life's SPIA within GID provides employers with a straightforward option of an immediate income annuity, allowing participants to begin receiving payments immediately. The solution features institutional pricing and the flexibility for individuals to convert any amount of their retirement plan savings into retirement income.

According to the Alliance for Lifetime Income, more Americans will turn 65 years old in 2024 than any previous year. At its peak, the surge will extend to more than 12,000 Americans reaching retirement age every day. This unprecedented wave of retirees is coupled with the Alliance for Lifetime Income’s findings in its 2023 Protected Retirement Income and Planning study that nearly 33% of consumers between ages 45 and 75 are not confident they will have enough to cover basic monthly expenses in retirement.

A solution for securing a reliable source of lifetime income is essential to cover necessary expenses in retirement, especially for individuals whose other expected sources of income, like Social Security and pensions, may fall short. The study also revealed that 97% of respondents say having guaranteed lifetime income in addition to Social Security in retirement is valuable, but fewer than 20% are very confident in the solvency of Social Security.

“Pacific Life’s collaboration with Fidelity Investments and Micruity demonstrates how innovation and alignment between independent parties can result in a retirement solution which enhances the flexibility and choice for individuals looking to secure a reliable source of retirement income,” said Karen Neeley, vice president of Pacific Life’s Institutional Retirement Solutions Group.

Participants’ entire SPIA experience is seamlessly integrated with Fidelity's employee benefits portal, offering digital tools, education, and support to assist employees in making informed decisions about their retirement income options. For plan sponsors, the platform allows them to offer participants flexible, retirement income options within their defined contribution plans. This streamlined user experience is powered in part by Micruity, a middleware firm that provides a secure, end-to-end digital platform that enables an efficient user experience, including a seamless purchase process.

“Pacific Life is excited to collaborate with Fidelity Investments on Guaranteed Income Direct,” said Michael Oler, assistance vice president and head of Pacific Life’s Defined Contribution Lifetime Income team. “This is a simple, yet powerful, solution that allows employees to tailor their retirement income plan according to their individual needs and helps plan sponsors improve retirement outcomes for their participants.”

The consortium approach to providing a viable solution is a response to the growing need for an easily accessible, lifetime income option that connects directly to a company’s retirement savings plan. Fidelity’s GID addresses this need to ensure a steady income stream during the transition from saving for retirement, to living in retirement.

For more information about Pacific Life, please visit www.PacificLife.com.

About Pacific Life
Pacific Life provides a variety of products and services designed to help individuals and businesses in the retail, institutional, workforce benefits, and reinsurance markets achieve financial security. Whether your goal is to protect loved ones or grow your assets for retirement, Pacific Life offers innovative life insurance and annuity solutions, as well as mutual funds, that provide value and financial security for current and future generations. Supporting our policyholders for more than 150 years, Pacific Life is a Fortune 500 company headquartered in Newport Beach, California. For additional company information, including current financial strength ratings, visit www.PacificLife.com.

Pacific Life, its affiliates, their 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.

Guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company or Pacific Life & Annuity Company. In New York, insurance products are only issued 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.

About Fidelity Investments
Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. With assets under administration of $11.5 trillion, including discretionary assets of $4.4 trillion as of September 30, 2023, we focus on meeting the unique needs of a diverse set of customers. Privately held for 77 years, Fidelity employs more than 73,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

About Micruity
Micruity is a data infrastructure company on a mission to improve retirement income security. The Micruity Advanced Routing System (MARS™) facilitates frictionless data sharing between insurers, asset managers, recordkeepers, and connected stakeholders through a single point of service that lowers the administrative burden and enhances the user experience of retirement income products, enabling plan sponsors to turn retirement savings plans into retirement income plans at scale.

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