Retirement income has become the Holy Grail for American workers and retirees. Having options when it comes to taking income in retirement is important, and a new benefit from Sun Life Financial Inc. gives people options.
Depending on a client’s needs, Retirement Income Escalator, provides two ways to maximize guaranteed lifetime income. For those who have already retired and need income now, the benefit lets them lock in a higher withdrawal percentage, and it is age-dependent. Clients who can wait several years for their income receive an annual 7 percent bonus to the withdrawal benefit base for the first 10 years-if no withdrawals are made.
Retirement Income Escalator is available for an additional charge on the company’s Masters variable annuities.
In addition to the annual 7 percent bonus, the benefit includes:
- Guaranteed lifetime withdrawals with age tiers. The longer clients wait to take the first withdrawal, the higher the withdrawal percentage becomes, and the withdrawal percentage is set for life at the time of the first withdrawal:
- People between 59 and 69 receive an annual withdrawal equal to 5 percent of their Withdrawal Benefit Base (WBB).
- Those between 70 and 70 receive 6 percent.
- Those age 80 and above receive 7 percent.
- Automatic annual step-ups. Sun Life checks each year on their anniversary to see if customers are eligible for a WBB increase. If they are, and their contract value is higher than the WBB due to market gains, the difference is added to the WBB, which automatically increases the annual withdrawal amount.
For more information, visit www.sunlife.com.