Pacific Life Retirement Growth and Income Annuity review

Yes, for a specific buyer. This is a good annuity for a New York resident working through Fidelity who wants protected lifetime income, is comfortable with a moderately balanced managed-allocation subaccount, and values a shorter surrender structure. It is less appealing for someone who wants broad investment choice inside the VA wrapper, is fee-sensitive, or is not accessing the product through a Fidelity Advisor relationship.

The main reason to buy this annuity is protected lifetime income. The GLWB II rider guarantees withdrawals for life, even if the account value falls to zero, and the 5% simple rollup builds the benefit base meaningfully before income starts. The secondary reason is legacy protection — the mandatory death benefit ensures that heirs receive at least the greater of account value or premiums paid less withdrawals, which is a meaningful floor for a variable product.

I think this product is best for a New York resident in their late 50s to early 70s who wants to convert a portion of retirement savings into a future income stream with principal downside protection on the income guarantee side, and who is already working within the Fidelity ecosystem. The shorter 5-year surrender period makes it easier to consider for someone who is not fully certain about locking up money for a decade.

This is not a good fit for someone who wants control over how money is invested inside the annuity, who prefers a no-load or fee-transparent structure, or who expects to access more than 10% of account value annually before income commencement.

You are not buying a broad investment vehicle. You are buying a lifetime income guarantee wrapped around a single balanced-allocation subaccount. The Fidelity VIP FundsManager 60% Portfolio targets roughly 60% equities and 40% fixed income — it is a managed, diversified fund, not a direct stock or bond selection. The key value in this contract is the income floor: no matter how the markets perform, the GLWB II rider ensures the owner receives annual withdrawals for life once income is activated.

The Guaranteed Lifetime Withdrawal Benefit II rider is mandatory on this contract. At issue, premiums begin building a benefit base. The rider applies a 5% simple annual increase to the rollup benefit base each contract year, until the earlier of the first qualifying withdrawal or a 10-year accumulation period. Annual automatic or owner-elected step-ups are also available on each contract anniversary — if the account value grows above the benefit base, the benefit base can lock in the higher value and the 5% rollup then applies to that stepped-up amount.

Once income begins, withdrawal percentages are tied to age at commencement. For single life, the range runs from 4.50% at ages 59.5–64 up to 9.55% at age 95 or older. Joint life percentages run 0.50 points lower at each band.

One useful feature is a one-time penalty-free withdrawal of up to 10% of account value, which does not stop the annual rollup or lock in the withdrawal percentage. It does reduce the benefit base proportionately, so it is not without consequence, but it provides a degree of flexibility before income activation.

The Return of Purchase Payment Death Benefit is mandatory and is not free — it costs 0.15% of account value annually. What it provides is meaningful for a variable annuity: the death benefit is the greater of full account value or premiums paid less withdrawals. In a bad market sequence, that floor can make a real difference for a beneficiary. Spousal continuation is available under the death benefit.

For buyers who are also thinking about legacy, the combination of the GLWB income guarantee and the return-of-premium death benefit gives this contract a dual-purpose feel. That said, buyers who do not value the death benefit are still paying for it.

The 5-year surrender schedule is shorter than what most income-oriented variable annuities require. Charges are a flat 2% in each of the five years, then zero. That structure is meaningfully more accessible than a 7- or 10-year schedule. Free withdrawals are limited to 10% of account value once the GLWB rider is active. Withdrawals above that are subject to surrender charges during the first five years.

Waivers are available for nursing home confinement, terminal illness, and death. RMDs are also listed as a waiver category, which matters for qualified accounts. Even with these provisions, buyers should understand that the product is designed for retirement income planning, not short-term cash management.

This is one of the more fee-layered products in its distribution channel. Breaking the annual costs down:

The base contract charges include a 0.60% mortality and expense charge and a 0.25% administration charge, totaling 0.85% at the contract level. The Fidelity VIP FundsManager 60% Portfolio adds a 0.66% net expense ratio at the subaccount level. The GLWB II rider charges 0.90% of the benefit base annually (or 1.00% for joint life). The Return of Purchase Payment death benefit adds another 0.15% of account value. Total estimated annual drag is approximately 2.56% — before any market gains are even considered.

That is a meaningful cost for a product where the subaccount is a single balanced fund. Buyers who are mainly focused on investment returns will likely find the fee load difficult to justify. The argument for the fees rests entirely on the value of the income guarantee and death benefit, which are real but must be weighed against the cost of carrying them.

The Pacific Life Retirement Growth and Income Annuity is issued by Pacific Life & Annuity Company, the New York-domiciled subsidiary of Pacific Life. Pacific Life & Annuity holds an A+ rating from A.M. Best and an AA- from Standard and Poor's — both strong marks for an insurance carrier. Pacific Life as a group has operated for well over a century and manages a large book of annuity and life insurance business. The New York entity exists specifically to serve that market under New York's regulatory framework, which is generally considered one of the more rigorous state insurance environments.