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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.
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.
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.
Annuities were once thought of as one size-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.
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 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.4609742.02.23