Manulife Investments has enhanced its IncomePlus product to offer guaranteed retirement income for life. Manulife says it made the change to address a concern among older Canadians that they will outlive their retirement savings.

The product was introduced in October 2006, and Manulife says sales exceeded $2 billion in less than one year.

Manulife adds that IncomePlus is now the only Guaranteed Minimum Withdrawal Benefit (GMWB) in Canada to offer guaranteed monthly retirement income for life starting after December 31 in the year the investor turns 65.

There will be no increase to any IncomePlus fees or fund management expense ratios for the enhanced lifetime IncomePlus benefit, Manulife says.

The new IncomePlus will be offered by Manulife Investments through the GIF Select contract beginning on October 22.

For investors who already purchased IncomePlus, the new features will be automatically available beginning December 31. The new enhancements to IncomePlus are being added with no increase to the current guarantee fees.

A recent survey for Manulife Financial found many Canadians are worried about “longevity risk” – the financial risk associated with the unknowns of life expectancy when planning retirement.

The survey of Canadians aged 40 to 64 showed that Canadians recognize that they will live longer, with 64% expecting they will live to age 85 and 23% to 95. And yet, 76% of respondents could not express with full confidence that their savings would last the length of their retirement.

“We know Canadians are living longer, and three-quarters of those recently surveyed have at least some uncertainty about whether their retirement savings will be enough to provide steady income for the rest of their lives,” says Roy Firth, executive vp, Manulife Investments.

“We are excited to offer Canadians the new IncomePlus — the only GMWB product in Canada to offer payouts for life — providing a unique and innovative solution to longevity risk.”