Consider Sun Life Income Series for Guaranteed Lifetime Income in Retirement

It may be worth considering Sun Life Income Series for Guaranteed Lifetime Income in Retirement. This product may be suitable for both pre-retirees  as well as those already retired. If you want more guaranteed income than Canada Pension Plan (CPP), or Old Age Security (OAS) and private pensions provide, this can be used to top up to a higher guaranteed income. It tends to have higher payouts than GICs too! It can be used in RRSPs, RRIFs, LIRA or LIFs as well as Tax Free Savings Accounts (TFSA) or non-registered accounts.

The main benefits are as follows.

• Predictable monthly income (as early as age 50) that is guaranteed for life and isn’t impacted by market declines.
• It may also provides liquidity in the event you need to withdraw capital at a later date depending upon the market value of the investment.

If you invest now but do not require income until a later date, you get paid a higher rate each year you delay. What I like about the product is that it has a “joint-life” option which may be beneficial for couples to consider. This option, if selected, means that guaranteed income payments will continue until the last spouse passes away. Below is a case study of a 55 year old couple, who invests $100,000 from the husband’s RRSP now but does not want to start receiving income until age 65. Also note that they can also decide to take income earlier or later than 65, if they want. 

If you have questions about Sun Life Income Series and how it could benefit your financial plan, please don’t hesitate to contact me.