(NC)—Desjardins Financial Security's recent Rethink Retirement 2008 survey showed that one in two Canadians is afraid of outliving their savings. This becomes a real concern for many retirees as the life expectancy of Canadians continues to rise. These worries will soon be a thing of the past now that segregated financial products are now offering guaranteed retirement payments for life.
A product that helps you rethink retirement
The guaranteed investment fund is a segregated financial product that works like a mutual fund. Deposits are divided across a number of funds to provide low-risk, well-balanced growth potential. Guaranteed investments funds can now include a special option called the Guaranteed Lifetime Withdrawal Benefit (GLWB). The GLWB feature will pay the contract holder a guaranteed and predictable retirement income for life, based on the age at which the first withdrawal is made. This means that investors can choose when to start making withdrawals, based on the age they think will be best for them while aiming to maximize the guaranteed income they would like to receive. In some cases, it can start as early as age 45.
"This new feature is the perfect solution for those retirees who are worried that they will outlive their savings," said Michael Aziz, regional vice president of investment product sales at Desjardins Financial Security.
Creating a predictable retirement
With the recent volatility of the financial markets, many investors have lost a substantial portion of their retirement savings. Now, the GLWB offered at Desjardins Financial Security will pay a special seven per cent bonus. The bonus will be added to the total amount used to calculate the investor's guaranteed retirement income every year for the first 10 years, provided no withdrawals are made. With this, the periodic income investors will receive at retirement will grow more quickly.
"We know that investors tend to limit their portfolios' risk exposure in the ten years prior to retirement," said Aziz. "Offering this special bonus provides investors with a safe way to play catch-up after the recent market down-turn."
More information is available online at www.dfs.ca/helios.
Source: www.newscanada.com
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