What's Happening?
Pacific Life has launched the Income Horizon™ Collective Investment Trust (CIT) series, aimed at helping defined contribution plan participants accumulate guaranteed lifetime income. This innovative solution allows participants to allocate a portion of
their contributions to build future payments, providing a predictable path from savings to retirement. The series is supported by Matrix Trust Company, a subsidiary of Broadridge Financial Solutions, which provides the CIT structure and serves as the discretionary trustee. The Income Horizon series is designed to integrate lifetime income as a distinct asset class within existing plan structures, offering liquidity and flexibility to participants.
Why It's Important?
The introduction of the Income Horizon series addresses the growing demand for retirement income solutions within defined contribution plans. As plan sponsors and advisors seek practical ways to transition participants from saving to generating income, this series offers a scalable solution. By providing a structured approach to lifetime income, Pacific Life aims to enhance financial security for retirees. The series also reflects a broader trend in the retirement market towards using collective investment trusts, which are becoming a preferred vehicle for delivering retirement income solutions.
What's Next?
The Income Horizon CIT series is available through the National Securities Clearing Corporation, and plan sponsors and advisors can contact Pacific Life for more information on availability and implementation. As the series gains traction, it may influence other financial institutions to develop similar products, potentially reshaping the retirement income landscape. The success of this initiative could lead to increased adoption of CITs in defined contribution plans, further integrating lifetime income solutions into retirement planning.
