sun-life-make-your-clients-happy-guaranteed-cheque

We had a bit of fun with retirement clichés in our newly released national TV commercial.

Some Canadians spend a lot of time and money on activities such as sailing. But most retirement visions don’t include getting sprayed as the bow of a sailboat slices through the waves.1

No matter what your clients’ passions are, and no matter how much wealth they’ve accumulated, they’ll be happy to receive a guaranteed monthly cheque in retirement. A life annuity generating a retirement “paycheque” can make retirees smile. Most middle- and high-income earners would likely benefit from directing some of their savings into a life annuity.2

You can help your clients find peace of mind knowing they can enjoy their retirement and make their savings last as long as they live.

It starts by strengthening their income floor with guarantees, which can come from a life annuity. For many reasons, life annuities just make sense.

Life annuities are sensible

A big decision for your clients will be, “How will I have enough money to enjoy retirement as long as I live?” Canadians are living longer, so they need more retirement income.3

Before suggesting a life annuity as a foundation for retirement income, you can answer some misconceptions they may have about the product.

Myth: I can’t invest in a life annuity because I won’t have access to my money.

Generally, it’s best for clients to include a life annuity as only a portion of their retirement income portfolio. Discover basic expenses required at retirement and subtract the expected CPP/QPP, OAS, and defined benefit pension plans (DB) amounts. That will help you calculate how much income your clients will need from a life annuity to cover the rest of their basic expenses.

As a good place to start, you could suggest clients receive 25 per cent of their retirement income from a life annuity.

guaranteed lifetime income: 25% | other investments: 75%

Remind your clients that if they invest in safe, low-interest investments, rather than market-based products, they’ll forgo higher potential returns from products such as mutual funds. Conversely, if they invest only in stocks, they could be setting themselves up for losses if market values decline, especially in the years right before or right after their retirement.

Creating an investment portfolio with a mix of products, including at least one offering guaranteed lifetime income, allows other products to provide growth and access to money. Based on your clients’ risk tolerances, financial goals, and life situations, you can help them choose the most suitable investments and how much of their savings to put into each product.

Support to start the conversation

Sign on to sunlife.ca/advisor and use the Sustainable income demo tool on the Money for Life web app to help clients see how a life annuity can generate additional income during their retirement.

These Money for Life resources will also help you explain annuities to clients and promote them as a sensible, smart foundation for their retirement income portfolio:

An annuity can help your clients cover their basic retirement expenses for life, no matter how long they live. Then they can focus on the retirement lifestyle that makes them truly happy.


1 0.2% of Canada’s population are members of yacht clubs (Sail Canada, 2014).

2 “Annuities and Your Nest Egg: Reforms to Promote Optimal Annuitization of Retirement Capital,” CD Howe Institute, 2012, p. 7.

3 The average life expectancy of a 65-year-old man is age 84 and for a 65-year-old woman is age 87. Statistics Canada, 2012.

Rocco Taglioni, Senior Vice-President, Head of Distribution, Individual Insurance and Wealth, is responsible for the overall leadership of Sun Life Financial’s distribution organizations across its Retail business in Canada. His role encompasses the leadership of the distribution company, as President Sun Life Financial Distributors Inc., as well as the Insurance and Wealth wholesaling sales organizations. Through the various leadership teams he oversees the development, direction, and execution of the Distribution strategies centered on wealth management, protection, retirement, and estate and financial planning.

Since joining Sun Life in 2004, Rocco has held various executive leadership roles, including Vice-President Business Development, Group Benefits; Head of Individual Wealth Management; Senior-Vice-President, Client Solutions; and most recently Senior Vice-President, Distribution and Marketing, Individual Insurance and Wealth. Throughout his tenure at Sun Life, Rocco has led various business strategies centered on building, transforming, and evolving organizations and teams to drive higher levels of performance and success.

Rocco has 36 years of experience in strategic leadership in the insurance and investment industries. He has served on and is a member of a number of boards. Rocco is currently President and Chair, Sun Life Financial Distributors (Canada) Inc. and is a member of the Sun Life Financial Investment Services (Canada) Inc. board. He is a member of various industry associations, including Advocis, GAMA Canada, the Canadian Pension and Benefits Institute, and the Association of Canadian Pension Management.

Rocco holds a Bachelor of Arts in Economics from York University.
Originally published on Advisor.ca