MetLife and Pimco, an investment solutions provider, have collaborated to educate advisors about retirement income solution that combines investment and insurance products to help meet income planning needs over the course of a client’s retirement years.

According to MetLife, 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.

This collaboration will enable advisors address these concerns, by enabling them to 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 (inflation-adjusted) monthly distributions to help protect against inflation risk, and separately purchase MetLife longevity insurance to provide monthly lifetime income after mutual fund distributions end.

Pimco retirement product manager and executive vice president Tom Streiff said inflation is a significant risk for retirees, and the Pimco Real Income Funds are specifically designed to provide systematic monthly distributions for a specified term, while seeking to preserve retirees’ purchasing power.

The Pimco inflation-adjusted mutual funds seek to continually maintain purchasing power during the applicable and defined distribution period.

MetLife LIG and the Pimco Real Income Funds provide advisors with the tools to offer their clients a holistic retirement income solution.

MetLife senior vice president for retirement products Elizabeth Forget said longevity insurance can protect retirees from the risk of outliving their assets while in retirement by providing guaranteed future lifetime income.

"By including MetLife’s Longevity Income Guarantee in a client’s overall retirement income strategy, a client can secure a guaranteed stream of lifetime income – typically beginning between ages 75-85 – when other assets may be running low," Forget said.