Jackson Perspective II Variable Annuity Review

What type of Annuity?

Jackson’s Perspective II is a variable annuity which are long-term, tax-deferred investments designed for retirement.  This annuity is like a mutual fund wrapped in an insurance package. They allow investors to invest in the stock market  market through sub accounts with different investment options, similar as mutual funds and ETFs inside a variable annuity.  Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met. Add-on living benefits, like guarantee income and enhanced death benefits, are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity and are subject to conditions and limitations. 

Comparison:

Servicing the retirement income planning market has grown in popularity as baby boomers and retirees search for options to protect against market volatility and secure lifetime income. Annuities are one of the few strategies that can accomplish both secured growth and guaranteed income. 

Annuities come in different specialties and many annuity carriers have different products within the same categories such as three different annuities.  Each having a different focus such as secured growth, income or death benefits as examples. Along with different available riders or options attached to your annuity, one annuity product could be completely different from your neighbor with the same named annuity but without certain riders attached.   

Table above will update as the competition changes.  Currently, there are some competitors to the Jackson Perspective II annuity.  To request a side by side, click on the compare button below and our Retirement Income Certified Professional® will answer any questions you might have.

Surrender Fees & Commissions:

Surrender charges/fees and periods for this annuity are the typical of most indexed annuities. Most annuities will have a multiyear surrender charge.  Typically annuities allow you to withdraw 10% of your accumulation value after the first year without surrender fees.  However if you are under age 59 and a half, you are subject to a 10% IRS tax penalty as well as income taxes applied to the withdrawal.

Jackson Perspective II ® annuity has only the 7 year surrender charge option as seen above.

The commissions for annuities can range anywhere from 4% to 8% paid one time directly from the insurance company to the selling agent.  As the buyer of an annuity, you would never pay anything directly to your financial planner, nor would the commission come off the value of your account. If you invest $100,000 into an annuity with a 6% commission, your starting value would still be $100,000 (or higher if the annuity gave a bonus).

Fee-Only planners have access to “Advisory or I- share fee advised” annuities that usually have zero surrender charges, instant liquidity, and lower costs/fees.  These planners charge annual fees to manage the investments usually under 1.00% per year of assets in the annuity.  Jackson has an Advisory fee-only class called Jackson Perspective II Advisory with net lower fees/cost than the best selling commissionable annuity.  Message us here to get the “advisory” commission free annuity from Jackson.