Secure your clients’ retirement in the context of market volatility.
The FORLIFE Series is an advantageous retirement savings option for your clients who want increased predictability, particularly when approaching retirement or early in their retirement years.
They go hand-in-hand
Available starting at age 50 (with an initial investment of $25,000 or more), the Income Stage1 of the FORLIFE Series provides a stable source of income that is guaranteed for life and estate protection in the event of death, while preserving access to the capital invested.
Among the two fund options available at the Income stage, the FORLIFE Guaranteed Maximum Income Fund2 is recommended for clients who are looking to maximize their income. In fact, with interest rate hikes since the beginning of the year, the income rates associated with these funds have increased significantly.
For example, a 65-year old who has saved for retirement may find themself with guaranteed lifetime income even if they didn’t have a pension plan, regardless of market fluctuations. Concretely, with an investment of $125,000 in the Guaranteed Maximum Income Fund, at a rate of 5.0%3, the resulting guaranteed lifetime income will be $6,250 per year.
Security AND Flexibility
The Income Stage remains to be considered when your clients are not ready to withdraw the funds but want to act immediately to secure their retirement income.
In fact, it is possible to invest in the Income Stage to secure their lifetime retirement income and reinvest this annual income every year to increase the amount guaranteed when withdrawn. This approach allows your clients to grow their guaranteed income while being protected against market volatility and interest rate fluctuations.
| Income Stage and guarantees |
|
| FORLIFE Income | Market value X Current income rate |
| Current income rate | Reviewed periodically and determined based on age, gender and interest rate levels |
| Resets of lifetime guaranteed income | Automatic every three years |
| Guarantee at death | 100% of all premiums invested in series funds |
| Guarantee at maturity | 75%f all premiums invested in series funds |
| Maturity date of the guarantee | December 31 of the year the annuitant turns 100 years old |
| Maximum age (for initial investment) | |
| Contrat type | Maximum age |
|
- Non registered plan/TFSA - RRIF/LIF transferred from another RRIF/LIF |
Age 90 |
|
- RRSP/LIRA/locked-in RRSP - RRIF/LIF transferred from an RRSP/LIRA/locked-in RRSP |
Age 71 |
In this period of economic uncertainty in which we find ourselves, we invite you to discover or rediscover how the FORLIFE Series can be part of a winning strategy for your clients.
Want to learn more?
ia.ca/SellingSegregatedFunds
F13-864A — FORLIFE Series
F13-884A — How the FORLIFE Series works
1 - The FORLIFE Series also includes the Savings Stage; however, clients may invest directly in the Income Stage if they wish (see the documents above for more details).
2 - The FORLIFE Series also offers the Growth Fund and FORLIFE guaranteed income, composed of 70% fixed income securities and 30% bonds (see the documents above for more details).
3 - Rate in effect as at June 10, 2022.
