Guaranteed Income for Life

Some of the most recognized, and highly rated insurance companies in Canada now offer Guaranteed Income Portfolios designed to provide investors with a 5% annual income guarantee for life (based on deposits and beginning at age 65).   

Guaranteed Income Portfolios are for investors primarily looking to receive a guaranteed, predictable, tax-efficient annual income beginning at age 65, of up to 5% of their deposits for life, regardless of market performance. 

Before withdrawals start, investors in pre-retirement receive a 5% annual guaranteed income bonus added to their guaranteed benefits for every calendar year they don’t draw income from their portfolio up to a maximum of 15 calendar years.  This 5% annual income bonus can offset market risk during the critical years just before retirement and potentially provide a larger retirement income.   

Portfolio gains are also automatically locked in every three years until contract maturity. 

This strategy can be used to complement, and enhance existing assets, and existing retirement income plans.  Guaranteed retirement income can help to fill the gap between government benefits, and your desired level of retirement income.  

Guaranteed income strategies address the retirement risk zone of 5-10 years before and 5-10 years after retiring when negative market fluctuations can have the most impact on retirement income.  This strategy guarantees an investor will not run out of money, and protects against a worse case scenario, or declining market environment. 

A variety of portfolios are available including pure income, balanced, and equities for longer term growth.  

We believe guaranteed income products are most suitable for investors who wish to insure/guarantee a portion of their money to cover the necessities in maintaining a desired standard of living, and secondly for investors who are 10-15 years away from requiring income. 

Additional portfolio costs are incurred with guaranteed investments.