MetLife (NYSE: MET) and PIMCO Collaborate on Provision of Retirement Solution
Tuesday, March 01, 2022 10:11 AM

MetLife, Inc. (NYSE: MET), a global provider of insurance, employee benefits and financial services, and PIMCO, a global investment solutions provider, announced an innovative marketing collaboration intended to educate advisors about a unique retirement income solution that combines investment and insurance products to help meet income planning needs over the course of a client’s retirement years.

Financial advisors today are challenged to solve two key risks that their clients may face during retirement: losing the purchasing power of income payments due to inflation and running out of money. To address these concerns, advisors can now offer clients a retirement income solution that uses two separate products in a complementary way.

A client can purchase PIMCO mutual funds designed to provide systematic real monthly distributions to help protect against inflation risk, and separately purchase MetLife longevity insurance to provide monthly lifetime income after mutual fund distributions end.

The PIMCO inflation-adjusted mutual funds seek to continually maintain purchasing power during the applicable and defined distribution period. The fund distributions are made monthly until all assets have been distributed, either by October 2019 or October 2029 and depending on the fund selected by the client.

The MetLife LIG can then generate income later in life, at a time when all assets from the PIMCO funds have been distributed. Clients can begin to take income from an LIG contract after a minimum two-year waiting period, starting any time between age 50 to 85.

The shares of MetLife (NYSE: MET) are trading at $ 47.31, down 0.11 percent.