Income Risk Transfer
It is understandable if you are concerned about growing your current savings so you can retire when you want:
You are going to be retired for 20, 30, 40 years, and you need to ensure you don’t outlive your money
Cost to maintain your same lifestyle goes up every year - the longer you live, the more income you’ll need
While the market can provide the growth you need over time, growth isn’t guaranteed and you no longer have as much time to make up for market losses as we have seen.
Retirement risk zone:
The closer you get to retirement the harder it is to recover any market losses
Market downturns in early retirement may mean an increased probability of running out of money.
A combination of products can help to ensure your retirement income will last
1. Annuities ensure a stable base of income
2. Investment funds to provide potential growth
3. Product specifically designed to guarantee an income amount for the rest of your life.
Lifetime income benefit option is a product that transfers the risk of the markets to the insurance company
If the markets go down, you have a guaranteed level of income for life
If the markets stay stable, your income has the potential to grow by a guaranteed amount (generally better than returns on GICs and other fixed income investments)
If the markets go up, you have the potential to increase your retirement savings
You pay a small premium off the top to protect your retirement income from the potential risks.
By developing a comprehensive plan together, we can help avoid you running out of money and give you the opportunity to experience additional growth if the markets do well.