A resounding majority (87 percent) of U.S. workers would welcome
access to a guaranteed lifetime income stream as an employment
benefit, according to the 2024 Voice of the American Workplace
study conducted on behalf of Franklin Templeton by The Harris Poll.
Today, Pacific Life and Franklin Templeton are announcing a
strategic partnership to make this desire a reality, marking a
significant milestone in their multi-year collaboration.
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Together, the two firms are evolving the way lifetime income is
delivered in defined contribution plans, by bringing together
Pacific Life's Income Horizon™ and Franklin Templeton's Goals
Optimization Engine (GOE®) to form a unique personalized income
approach structured within Collective Investment Trusts (CITs) for
simplified implementation. The resulting lifetime income framework
allows defined contribution plan participants to seamlessly convert
a portion of their accumulated retirement savings into a guaranteed
income stream for life, right inside their existing plan. The
solution combines personalized asset allocation advice provided by
Franklin Templeton that includes allocations to lifetime income
secured by Pacific Life to extend into a complete decumulation
strategy.
“This partnership underscores a shared commitment to retirement
income security, with a focus on innovation and customization to
meet the evolving needs of plan sponsors and their participants,”
said Brian Woolfolk, executive vice president and head of
institutional business at Pacific Life. “Our collaborative approach
addresses a number of key concerns that participants have expressed
in research studies.”
Pacific Life recently released Decoding Retirement, a study
highlighting a variety of factors influencing retirement outcomes
for participants. Notably, 58 percent of respondents preferred
incremental lifetime income purchases over time versus a larger
purchase at retirement. “The design of Income Horizon aligns with
this preference for incremental purchases over time. And, when
integrated with GOE, creates a simple, holistic, and personalized
approach to securing lifetime income in retirement for plan
participants. This innovative solution built with Franklin
Templeton is a significant advancement over the traditional
one-size-fits-all approach,” added Woolfolk.
Plan participants approaching retirement have a widely divergent
set of relevant characteristics, such as varying tenures, balances,
savings rates, continued usage of target-date funds, access to
traditional pension plans, marital status, desired retirement ages
and preferences regarding spending in retirement.
“The new framework that Franklin Templeton and Pacific Life have
collaborated to develop addresses these crucial differences and
integrates the broad array of participant data that plan sponsors
have access to—building on modern approaches to data and machine
learning—to personalize recommendations,” said Yaqub Ahmed, co-head
of retirement, insurance, and 529 distribution at Franklin
Templeton.
By accessing a guaranteed income solution within a defined
contribution plan, participants benefit from a number of crucial
advantages, including competitive group/scale pricing, fiduciary
oversight, professional management, dollar-cost averaging, and
portability.
For plan sponsors, this holistic solution helps address key
considerations, such as scaled costs and ease of implementation.
Once a plan sponsor adopts the solution, there is an efficient path
to making it available to plan participants to secure a
personalized retirement income plan to meet their future needs.
“We believe every U.S. worker and household has the right to
experience financial well-being throughout each phase of life,”
added Ahmed. “Our continued investment in strategic partnerships
and product development is meant to ensure we are bringing a
breadth of solutions to market to meet the various needs and
preferences of plan sponsors and their participants. We are
committed to creating transformative changes, through new solutions
such as this one with Pacific Life, and early indications are there
is a lot of interest on behalf of plan sponsors for what we are
bringing to market.”
Pacific Life’s deep experience in pension risk transfer and
retirement income, and Franklin Templeton’s 75+ year history of
asset management, bring together financial strength and stability.
Their collaboration aims to address existing gaps in the market
with a personalized, simple, and flexible approach to asset
allocation, insured income, and participant engagement.
For more information, please contact: Michael Oler at
Michael.Oler@PacificLife.com or Ahmet Kamil at
Ahmet.Kamil@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’s Income Horizon™ is a group deferred income
annuity. 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. Product and features are subject to regulatory
approval. Each insurance company is solely responsible for the
financial obligations accruing under the products it issues.
All guarantees are subject to the claims-paying ability and
financial strength of the issuing insurance company.
About Franklin Templeton:
Franklin Resources, Inc. [NYSE:BEN] is a global investment
management organization with subsidiaries operating as Franklin
Templeton and serving clients in over 150 countries. Franklin
Templeton’s mission is to help clients achieve better outcomes
through investment management expertise, wealth management and
technology solutions. Through its specialist investment managers,
the company offers specialization on a global scale, bringing
extensive capabilities in fixed income, equity, alternatives and
multi-asset solutions. With more than 1,500 investment
professionals, and offices in major financial markets around the
world, the California-based company has over 75 years of investment
experience and over $1.6 trillion in assets under management as of
June 30, 2024. For more information, please visit
franklintempleton.com and follow us on LinkedIn, X and
Facebook.
Franklin Templeton’s Goals Optimization Engine (GOE®)
recommends a portfolio for each goal an investor has, actively
adjusts the asset mix over time, seeking to maximize the likelihood
of achieving retirement goals. There can be no guarantee goals will
be achieved. Investment allocation generated by GOE® is based on
information provided and may be limited to the investment options
available in the defined contribution plan. GOE® is owned and
managed by Franklin Advisers, Inc.
©2024 Franklin Distributors, LLC.
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version on businesswire.com: https://www.businesswire.com/news/home/20240730257269/en/
Pacific Life Jesse Page (949) 219-4575 jpage@pacificlife.com
Franklin Templeton Rebecca Radosevich (212) 632-3207
rebecca.radosevich@franklintempleton.com
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