FA Magazine March 2023 - Page 57


How are you protecting your clients ’ income during retirement ?

AARON SEURKAMP KNOWS RETIREMENT solutions . As the President of the Retirement Division for Protective Life Insurance Company , his team provides income solutions that help financial professionals protect the income their clients aspire to have during retirement . Aaron explores some of the most pressing questions that are currently top of mind for financial professionals and their clients as they navigate uncertain times .

Q : Clients are currently challenged with navigating the market environment with pressure we have not seen in a long time . What strategies can financial professionals use to guide investors during this period ?
Aaron Seurkamp : This market is keeping many of us on our toes , and it ’ s a new era for financial professionals . Once-stable solutions may not be as trusted as they were in the past . For instance , the 60 / 40 portfolio isn ’ t what it used to be , and bonds are not creating the confidence within a portfolio they once did . Taxes , inflation , rising interest rates and volatile markets are posing challenges , and clients are looking for solutions to protect and provide income in retirement . That ’ s where annuities can help deliver confidence . In addition to providing tax deferral and guaranteed income benefits , some annuity solutions provide a fixed rate of growth while protecting clients from market downturns . Other types of annuities provide access to market upside and guaranteed roll-up rates to maximize growth potential or opportunities . Many provide various add-on features to further help clients approach retirement more confidently .
Q : There are so many variable annuity solutions available in the market today , what questions should financial professionals consider when evaluating solutions for their clients ?
Aaron Seurkamp : Financial professionals need to ensure they are not only considering the roll up rate or withdrawal rates on the solutions they offer clients , but that they thoroughly evaluate the guarantees and customization the solution provides . For instance , does it offer the highest guaranteed income in retirement ? If a client defers retirement , do the variable annuities you recommend offer higher income potential ? If they return to work , can they defer income ? Does the variable annuity allow clients to adjust their income as their retirement needs shift ? How much do they need to invest to get the level of income
they need ? Not all variable annuities are the same , and it ’ s critical that financial professionals ask these questions before recommending annuities to clients , so they can help them protect what they ’ ve worked hard for .
Q : Annuities were once thought of as onesize-fits-all kind of products . How has this evolved in recent years ?
Aaron Seurkamp : Clients desire more flexibility than ever before , and at Protective , we understand the one-size-fits-all approach does not work . Clients want income solutions that are highly flexible to meet changing needs , because the needs they have when they purchase a variable annuity may not be the same needs they have when they need to begin receiving that income . That is why our annuities ’ features allow clients to add income riders after time of purchase . Tax-deferred subaccounts can mirror tax-inefficient investments , potentially lowering taxable income for high-earning clients .
“ Clients want income solutions that are highly flexible to meet changing needs , because the needs they have when they purchase a variable annuity may not be the same needs they have when they need to begin receiving that income .”
Aaron Seurkamp President of the Retirement Division for Protective
Q : How has Protective tailored its income solutions for clients so they can benefit from these flexible features ?
Aaron Seurkamp : Based on industry research , we can safely assume clients will live on average 30 years during retirement , but their income needs can change drastically within that time frame . Protective ’ s variable annuities have been designed with those needs in mind , offering clients flexibility to control their income withdrawals and defer up to three times their annual withdrawal amount so they can take that income in later years . If clients decide to retire later than expected , they could benefit from higher withdrawal rates . Conversely , if clients retire sooner than expected they won ’ t see a huge hit to their income because our solutions offer unique withdrawal factors by age , instead of the typical age band structure often seen on living benefits .
As protectors of your clients ’ futures , Protective is focused on helping your clients reach their aspirational goals . Appropriately registered financial professionals can scan the QR code to learn more about Protective ’ s income solutions for retirement and questions you should consider when evaluating annuities .
Protective refers to Protective Life Insurance Company ( PLICO ), Nashville , TN , and its affiliates , including Protective Life and Annuity Company ( PLAIC ), Birmingham , AL . Annuities offered by PLICO in all states except New York and in New York by PLAIC . Variable products offered by Investment Distributors , Inc . ( IDI ), a broker-dealer and principal underwriter for products issued by PLICO and PLAIC , its affiliates . Aaron Seurkamp is a registered representative of Concourse Financial Group Securities ( CFGS ), member FINRA and SIPC . PLICO , PLAIC , IDI , and CFGS are wholly-owned subsidiaries of Protective Life Corporation . CABD . 4554512.02.23