Winnipeg-based Great-West Lifeco Inc.’s Canadian insurance subsidiaries launched a new retirement income program on Monday designed to help financial advisors consolidate client savings and turn them into a lifelong income stream.
The program, launched by Winnipeg-based Great-West Life Assurance Co. (GWL), Toronto-based Canada Life Assurance Co. and London, Ont.-based London Life Insurance Co., is called HelloLife. It takes into account a client’s existing retirement savings and provides an outlook for spending throughout retirement, including basic needs, lifestyle spending and other factors. It then creates a balanced retirement plan designed to last through a client’s retirement years, using a mix of annuities for guaranteed income, and segregated funds for potential growth.
The insurers developed the program using extensive research involving Canadians who were up to five years away from retirement — as well as those who had recently retired.
“We found Canadians are looking for guidance in making the transition into retirement,” says Rob Ritchie, executive vice president of wealth management for GWL, London Life and Canada Life, in a statement. “Specifically, they’re looking for help on how to turn their retirement savings into a steady income stream that lasts throughout their lifetimes. HelloLife will enable advisors to assist their clients even better in gaining confidence in their retirement income plans.”
The program is designed for clients who are close to retirement or retired, need predictable, guaranteed income and don’t want to manage their investments actively.
HelloLife includes an online planning resource that incorporates a needs analysis tool, a live annuities-quoting engine, a portfolio allocator and a program illustrator. Advisors can use these tools to identify a product mix customized to each client’s needs.
For example, clients seeking greater growth potential and flexibility can invest more heavily in seg funds, whereas clients seeking more certainty and security can place a greater proportion of assets in annuities.
The annuities portion of the program introduces four new income annuity options designed to provide greater flexibility through an extended death benefit, income transition period, short-term rate protection and flexible income start date.
The available seg funds, meanwhile, are divided into four categories designed for different goals and life stages: protect value, resist inflation, create income and growth.
The program focuses on making the retirement-planning process easy and transparent for clients, through plain language and interactive tools that advisors can use alongside their clients.