Sun Life and CI to offer lifetime withdrawal option on funds rider

Sun Life Financial and CI Investments Inc. have announced plans to introduce a lifetime withdrawal option on the SunWise Elite Plus segregated funds rider.

The company says the change builds on the existing SunWise Elite Plus Guaranteed Minimum Withdrawal Benefit (GMWB) by providing guaranteed income for life. It expects the enhancement to be available on March 24. The guaranteed lifetime income can increase with resets every three years, which the firms say helps mitigate the risk of inflation eroding purchasing power.

“Canadians are living longer and longer in retirement, and so they need help with the uncertainty of outliving their retirement nest eggs,” said Dean Connor, president of Sun Life Financial Canada.

“SunWise Elite Plus allows Canadian investors to turn their retirement savings into their own private pension,” said Peter Anderson, CEO of CI Investments. “Investors and their advisors will be able to construct a retirement plan with much more certainty, knowing the minimum amount they will have at retirement and how much will be available every year for life. And, if their investments perform well, their guaranteed income could increase.”

SunWise Elite Plus income for life is an optional rider that will be available for both new and existing SunWise Elite contracts, with a minimum investment per policy of $25,000, according to a release. It offers guaranteed, predictable income starting at age 65 or later and investors can allocate up to 90% of their portfolio to equity investments. As well, an income deferral feature lets clients accumulate unused withdrawal room of up to 15%. Investors will receive a 5% bonus for every year they do not make a withdrawal in the first 15 years following the initial deposit to the rider.

The firm announced today that seven new funds are being added to the SunWise Elite lineup, including three new Cambridge Funds managed by Alan Radlo.