As retirees and those close to retirement realize that their money is going to have to last longer than ever, they are looking for products that help meet that need. The U.S. division of Sun Life Financial is doing what it can to meet the retirement income need with Income ON Demand, a variable annuity income storage benefit that allows policyholders to defer all or part of permitted annual withdrawals and store them in the contract for future use. The benefit is available at an extra cost on most Sun Life Financial Masters variable annuities.
Income ON Demand lets current and pre-retirees do four important things, according to ING:
- Secure lifetime income for themselves, and a spouse, if desired.
- Store deferred withdrawals in a stored income balance. The deferred amounts can be withdrawn in a future year, on top of that year’s permitted annual amount.
- Start, stop and store payments to meet changing needs.
- Restore the account value to the sum of the purchase payments made in the first contract year, if no withdrawals have been taken within the first 10 years and the account value on the benefit maturity date has been driven below the total of the first-year purchase payments by a down market.
For more information about the product, including charges for the option and what states it is available in, visit www.sunlife-usa.com and search for Income ON Demand.