Consider Empire Life Class Plus 3.0 for Guaranteed Lifetime Income in Retirement
It may be worth considering Empire Life Class Plus 3.0 for Guaranteed Lifetime Income in Retirement. This product may be suitable for both pre-retirees who plan to retire within the next 20 years as well as those already retired. If you want more guaranteed income than the 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 Registered Plan such as RRSPs, Tax Free Savings Accounts (TFSA) or non-registered accounts.
The main benefits are as follows.
- Predictable monthly income that is guaranteed for life, provided there are no excess withdrawals.
- Start receiving an income as early as age 55.
- Annual 4% Income Base Bonus builds your retirement income potential. The Income Base Bonus is credited in years that there are no withdrawals from Class Plus 3.0. for the first 20 calendar years you own Class Plus 3.0. It is a notional amount and has no cash value.
- With annual Automatic Income Resets your income may be bumped up. Available from ages 55 to 80. Calculated based on the current Income Base and the applicable LWA (Lifetime Withdrawal Amount) percentage that corresponds to the Annuitant’s age as of December 31st of the following calendar year.
While the terminology may seem difficult to grasp at first glance, I have provided a 2-part video series where I illustrate a potential client scenario.
Hopefully you found the videos helpful. If you have questions, please don’t hesitate to contact me.
Not sure where to start with your financial plan? Enter your name and email in the box on the right to complete the Goal Planning Checklist. Instantly identify the strengths and weaknesses in your current financial plan.
[activecampaign form=114]