Seeking to provide more flexibility for Canadians saving for retirement, Manulife Investments announced several changes to IncomePlus, its guaranteed minimum withdrawal benefit product, on Monday.

Beginning Oct. 20, investors will receive a 5% bonus on their guaranteed income for each year that they don’t make a withdrawal from IncomePlus. Previously, income bonuses were available in each of the first 15 years when there were no withdrawals.

This makes it the first product of its type to offer annual income bonuses for the life of the contract, said J. Roy Firth, executive vice president of Manulife Financial Corp.

“An unlimited income bonus period will allow IncomePlus investors to better plan for retirement knowing that their guaranteed income for life can increase each year, regardless of market conditions,” Firth said in a statement.

Manulife also announced it would lower the minimum investment in IncomePlus to $25,000 from $50,000. In addition, investors now become eligible for the lifetime withdrawal benefit at the beginning of the year in which they turn 65, rather than at the end of the year.

The changes will not impact fees or management expense ratios for the IncomePlus product. The enhancements will automatically be made available to existing contract-holders on Dec. 31.

Since its launch in October 2006, deposits have surpassed $6 billion in GIF Select featuring IncomePlus.

“Many Canadians see a clear need for this type of product in their
financial plans,” Firth said. “Investors young and old want protection when markets are volatile and growth when markets are good.”

IncomePlus includes a wide range of funds, and appeals to Canadians preparing to enter the “Retirement Risk Zone” — the five to 10 years before and after they reach retirement — when their portfolios are most vulnerable to market downturns and volatility, according to Manulife.