Integrated approach to retirement income planning yields greater wealth

Research finds unique strategy may create more income and larger financial legacy

Indianapolis, May 12, 2015

According to a new white paper authored by Wade Pfau, Ph.D., CFA, a more integrated approach to retirement income planning—using investments, income annuities and whole life insurance—may yield higher income and greater legacy wealth than an investment-only strategy. The paper was distributed by OneAmerica at their annual Economic Summit.

“For years, Americans have focused on building a nest egg for retirement” said Dr. Pfau, a professor of retirement income at The American College for Financial Services. “This research suggests that using income annuities and whole life insurance combined with investments can create a more efficient retirement strategy. The markets have to perform extremely well to beat this integrated approach.”

The research for this white paper examines case studies with 35-year old and 50-year old couples, comparing three retirement scenarios for each. The scenarios consider: investments and term life insurance; investments, joint and 100 percent survivor annuity and term life insurance; and investments, single life annuity and whole life insurance. The results demonstrate that a higher income level and greater legacy are potentially achieved when investments, single life annuities and whole life insurance are combined than when applying investment-only solutions.

“This research not only provides a case study of the intricacies of retirement income planning but also reinforces the importance of considering the full array of financial tools available in building a well-diversified retirement income portfolio,” said Nicolas E. Lance, RMA®, vice president of Retirement Income Strategies at OneAmerica.

The research assumes the 35-year old couple has $65,000 in a retirement account and $15,000 available per year to invest for retirement. When these assumptions are run through the three different scenarios, the integrated option provides for 40 percent more income at age 65 and 228 percent more legacy wealth at age 100 than the investments-only option. The results are also scalable, suggesting if a person has less money to put towards retirement, the advantages hold true.

“Personal situations vary and there are many options for creating retirement income,” Lance said. “This research explores one strategy that takes advantage of investments, provides guarantees and leaves a legacy for future generations.”

OneAmerica is the marketing name for the companies of OneAmerica. Products and financial services issued and underwritten by AUL, State Life and PML. Securities offered through OneAmerica Securities, member FINRA, SIPC. Investing involves risk, including loss of principal. Individual results may vary.

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About OneAmerica®
OneAmerica Financial Partners, Inc., headquartered in Indianapolis, Ind., has companies that can trace their solid foundations back more than 135 years in the financial services marketplace.

The OneAmerica companies offer a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and trust and record-keeping services; individual life insurance, annuities, asset based long-term care solutions and employee benefit plan products.

The products of the OneAmerica companies are distributed through a nationwide network of employees, agents, brokers and other distribution sources that are committed to increasing value to policyholders by helping them prepare to meet their financial goals. To learn more about our products, services and the companies of OneAmerica, visit, the OneAmerica Newsroom or follow @OneAmerica on Twitter.

Jo Lynn Garing, Media Relations Director, 317-285-1485