The Pension Protection Act isn’t just a product idea.
It’s a conversation starter.
And with trillions sitting in retirement assets and record annuity sales over the last few years, advisors have more opportunities than ever to bring tax-free care planning into the discussion.
Roth conversions are everywhere right now.
Clients are hearing about taxes, RMDs, legacy planning, and tax-free income. And with IRAs holding roughly $19.2 trillion at the end of 2025, there is no shortage of qualified money being reviewed.
Now, the Pension Protection Act is not an IRA strategy.
But if you’re already having tax-free planning conversations, it opens the door to another question:
“What do you have set aside for care?”
If the client also owns non-qualified annuities or life insurance, PPA planning may allow them to reposition taxable assets into tax-free long-term care benefits.
Opportunity checklist:
MYGAs are great when clients want simple, predictable interest.
But the conversation can become cyclical.
Rate expires.
Shop the next rate.
Repeat.
At some point, the better question may not be, “Can we get a slightly better rate?”
It may be:
“If this money is ultimately there for health, care, or family protection, could we create more value by repositioning it?”
Some PPA annuity strategies may provide two, three, or even four times the premium amount in long-term care benefit value, depending on the product, underwriting, and client situation.
Opportunity checklist:
Annuity reviews are one of the biggest opportunities in the business right now.
LIMRA reported total annuity sales of $434.1 billion in 2024 alone, and 2022 through 2024 represented roughly $1.1 trillion in total annuity sales.
That means a massive wave of annuity contracts will continue coming up for review, renewal, surrender-window analysis, and repositioning conversations.
Most advisors look at:
But one question often gets missed:
“Does this client have a plan for care?”
If the client’s situation has changed, health concerns have entered the picture, or the annuity no longer has a clear purpose, the Pension Protection Act may create a more meaningful planning conversation.
Opportunity checklist:
The Pension Protection Act does not replace Roth conversions, MYGAs, or traditional annuity reviews.
It complements them.
When clients are already talking about taxes, guarantees, legacy, or care, advisors should know when to ask:
“Could this money do more if it were repositioned for tax-free care benefits?”
That one question can turn an ordinary review into a much bigger planning opportunity.