The following articles from the past year give insights into increasing life expectancies and concerns among Canadians about outliving their retirement savings; suggest opportunities to talk with your clients about generating sufficient retirement income; and demonstrate how a life annuity can be an essential part of their retirement plans, providing a monthly guaranteed cheque for life.
Survey says: guaranteed retirement income for life a must for most Canadians
Findings from the 2014 Sun Life Canadian Unretirement Index reveal 97% of respondents say it’s important to them that some of their retirement income is guaranteed. This article suggests with a life annuity, your clients can receive a guaranteed cheque in retirement every month for as long as they live.
Running on Empty: Are we facing a longevity crisis in Canada?
Authored by Sun Life Financial, this Bright Paper provides research into increasing life expectancies that you can share with your clients — and discusses opportunities for retirement planning.
Your clients are living longer – are they ready for their longer retirement run?
Many Canadians will live longer than age 90.1 But current planning behaviour hasn’t kept pace with today’s aging demographic. This article outlines a strategy for clients to direct a portion of their retirement savings to a life annuity, ensuring guaranteed income that will cover basic expenses for the rest of their lives.
The number one reason Canadians change their retirement date: health
In the recently released 2014 Sun Life Canadian Health Index, 45% of respondents admitted to being worried about outliving their retirement savings. Insights in this article are great conversation starters about generating enough income to last a lifetime and protecting retirement savings from health events.
Make your clients happy, with a guaranteed monthly cheque in retirement
What can you say when your clients don’t want to invest in a life annuity, because they won’t have access to their money? This article suggests a life annuity could produce only a portion of their retirement income, creating a strong foundation for their portfolio.
A smart strategy to make enough money in retirement
Some of your clients may be hesitant to purchase a life annuity, because they don’t think they’ll live long enough to get their principal back. This article shows the break-even point can happen much sooner than they may realize.
Explaining — in plain language — the difference between a RRIF and a payout annuity to your clients
Reports in the news media about Registered Retirement Income Funds (RRIFs) are generating discussions about Canadians outliving their retirement savings.2 That’s not an issue with a life annuity, which provides the security of guaranteed income for life, with no exposure to the ups and downs of the markets. This article gives you answers to questions about RRIFS and payout annuities your clients may be asking.
Sign on to sunlife.ca/advisor to access five digital tools on the Money for Life web app that can help you show your clients how longevity can affect their retirement, and how life annuities can give them peace of mind that they’ll have guaranteed income for as long as they live.
- Use the Longevity Risk Illustrator tool to help your clients understand how long they might live and the health risks they could face.
- The Sustainable income demo tool helps clients see how a payout annuity can increase their retirement income, without increasing the chances they’ll run out of money.
- The Buy now, buy later tool helps clients between the ages of 65-75 understand the best time to buy a payout annuity to meet their retirement goals, by showing them how delaying a payout annuity purchase could affect their income.
- The new Annuity & GIC income comparison tool shows clients the age they can expect to receive their original payment back from an annuity. The tool also shows clients when the income from a GIC will run out.
1 “Canadians face more years of saving, work as chief actuary increases life expectancy,” Financial Post, April 16, 2014. Jean-Claude Ménard, Canada’s Chief Actuary, reports many Canadians will live longer than age 90.
2 “Time to lower RRIF minimums,” Advisor.ca, October 30, 2014; Adam Mayers, “The high cost of taking money out of your RRSP: The rules governing the conversion of RRSPs into RRIFs are out of date and may be hurting people in their old age,” Toronto Star, October 30, 2014; Rob Carrick, “Why Canada needs to update its RRIF withdrawal rules,” Globe and Mail, October 27, 2014.