Schwab Retirement Income Variable Annuity
Keep your retirement savings invested and secure a retirement income stream for life—no matter how your investments perform—with the Schwab Retirement Income Variable Annuity™ and its optional Guaranteed Lifetime Withdrawal Benefit (GLWB).1
- Guaranteed income for life through annuitization or the optional GLWB.1
- Low, transparent pricing.2
- Professionally managed investments from Charles Schwab Investment Management, Inc.
- Tax-deferred growth potential for your retirement savings.
- Access to your assets in case of emergencies or unexpected expenses, with the GLWB. Keep in mind that if you make a withdrawal it will decrease your contract value, Protected Payment Base, and death benefit. (Your GLWB's Protected Payment Base is not a contract value and is not available for withdrawal like a cash value.)3
Talk to us about annuities. Visit a Schwab branch or call 888-311-4889.
All annuity guarantees are subject to the financial strength and claims-paying ability of Pacific Life. Schwab does not provide any insurance guarantees
Guaranteed lifetime income in any market.
With the Schwab Retirement Income Variable Annuity, you can secure lifetime income through annuitization or by purchasing the optional Guaranteed Lifetime Withdrawal Benefit (GLWB). The GLWB option allows you to lock in an annual retirement income equal to 5% of your contract's highest anniversary value on any contract anniversary date after you purchased the rider. You can add the GLWB option on or after the date you purchase your annuity until age 85.
Your income can grow in up markets. | Your income is protected in down markets.
With the GLWB, you can stay invested in the market to help counteract the effects of long-term inflation—without jeopardizing future income.
A market downturn right before your retirement or in the first years of retirement could rob you of savings you’re counting on for income. The Schwab Retirement Income Variable Annuity™ gives you the option to protect your payment base.
Get more information.
1. The Guaranteed Lifetime Withdrawal Benefit (GLWB) is an optional rider available for an additional cost charged against the Protected Payment Base. The Protected Payment Base is not a contract value and is not available for withdrawal like a cash value. Your actual contract value and death benefit will deplete with each withdrawal, though you may continue to withdraw 5% of the Protected Payment Base for life even after the account value has been depleted to zero. Withdrawals in excess of the specified 5% annual payout amount, or withdrawals prior to age 59½, may significantly and permanently reduce the Protected Payment Base.
2. Source: 1.34% industry average according to a June 30, 2012, Morningstar survey of 1,880 variable annuities. This does not include fees associated with the optional GLWB or underlying investment options. The GLWB currently carries a fee of 0.80% (individual life) to 1.00% (joint life), and underlying investment options carry additional fees and expenses of 0.80% after expense reductions.
3. Tax penalties may apply prior to age 59½, and withdrawals in excess of the protected payment amount may significantly and permanently reduce your future income.
4. When you invest in a variable annuity, you do not invest directly in the portfolios. You invest in sub-accounts that, in turn, invest in the portfolios you’ve selected. Your account is then credited with variable accumulation units in that sub-account. The fees and charges associated with the sub-accounts and the terms and conditions of your investments are detailed in the prospectus and are in addition to the fees for the variable annuity and optional GLWB rider or other riders.
5. Exposure to the asset classes is achieved through investments in ETFs and mutual funds, not through direct investment in the assets. ETFs are subject to risks similar to those of stocks. Some specialized ETFs can be subject to additional market risks. Investment returns will fluctuate and are subject to market volatility such that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF.
6. Withdrawing more than the annual protected payment amount can significantly and permanently reduce future guaranteed payments, and withdrawals prior to age 59½ may be subject to a 10% federal tax penalty.
7. The investment adviser and its affiliates have agreed to limit the total annual portfolio operating expenses (excluding interest, taxes, and certain non-routine expenses) of each portfolio for as long as the investment adviser serves as adviser to the portfolio. Please see the Schwab VIT Portfolios prospectus for details on fees and expenses.
8. Before exchanging your current annuity, you should consider a number of important factors that could reduce or eliminate the benefit of the exchange. These include surrender charges on your existing contract, loss of guaranteed benefits, and differences in features, costs, services, and company strength.
Variable annuities are sold by prospectus only. Before purchasing an annuity, you should carefully read the prospectus and consider the annuity’s investment objectives and all the risks, charges, and expenses associated with the annuity and its investment options. You can request a prospectus containing this and other information by calling 888-311-4889 or you can view one online.
All annuity guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company. Schwab does not provide any insurance guarantees.
Charles Schwab & Co., Inc., a licensed insurance agency, distributes certain insurance and variable annuity contracts that are issued by insurance companies not affiliated with Schwab. Not all annuity contracts are available in every state.
The Schwab Retirement Income Variable Annuity is issued by Pacific Life Insurance Company in all states except New York and is issued in New York by Pacific Life & Annuity Company. The contracts are sold exclusively by Charles Schwab & Co., Inc. (“Schwab”) through its representatives, including both employees and independent contractors and their employees (“Schwab Financial Consultants”). Charles Schwab Investment Management, Inc. (“CSIM”) is the adviser for the underlying investment options. Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation and are not affiliated with Pacific Life Insurance Company or Pacific Life & Annuity Company.
The contract value of the annuity may be more or less than the premiums paid, and it is possible to lose money.
Variable annuities are long-term investment vehicles designed for retirement purposes. Withdrawals of taxable amounts will be subject to ordinary income tax and, if taken prior to age 59½, may be subject to a 10% tax penalty. Withdrawals will reduce the death benefit amount in direct proportion to the percentage by which the contract value was reduced. This can increase or decrease the amount deducted from the death benefit.
International investments are subject to additional risks, such as currency fluctuations, political instability, and the potential for illiquid markets. Investing in emerging markets can accentuate these risks.
Investments in commodity-related products may be subject to significantly greater volatility than investments in traditional securities and involve substantial risks, including significant loss of principal value.
There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations, and the impact of varied economic conditions.
Contract Form Series: 10-1225, 10-2225
Rider Form Series: 20-1226, 20-1227, 20-2226, 20-2227