From Sun Life Financial and CI Investments
TORONTO, March 6, 2008 – For Canadians looking for help in meeting their retirement income needs, Sun Life Financial and CI Investments Inc. today announced plans to introduce a lifetime withdrawal option on the SunWise Elite Plus segregated funds rider. Currently expected to be available on March 24, 2008, the enhancement builds on the existing SunWise Elite Plus Guaranteed Minimum Withdrawal Benefit (GMWB) by providing guaranteed income for life.
“Canadians are living longer and longer in retirement, and so they need help with the uncertainty of outliving their retirement nest eggs,” said Dean Connor, President, Sun Life Financial Canada. “This exciting enhancement to SunWise Elite Plus will relieve that uncertainty by paying a guaranteed income for life.”
“SunWise Elite Plus allows Canadian investors to turn their retirement savings into their own private pension,” said Peter W. Anderson, Chief Executive Officer, CI Investments. “Investors and their advisors will be able to construct a retirement plan with much more certainty, knowing the minimum amount they will have at retirement and how much will be available every year for life. And, if their investments perform well, their guaranteed income could increase.”
According to a recent survey by Sun Life Financial, Canadians’ most pressing retirement concerns centre on not saving enough money for retirement or outliving their savings. SunWise Elite Plus guaranteed income for life is a powerful retirement planning tool for Canadians. It allows them to take control of their retirement risks by reducing the need to worry about outliving their savings or how their investments will perform. The guaranteed lifetime income can increase with resets every three years, which helps mitigate the risk of inflation eroding purchasing power.
SunWise Elite Plus income for life is an optional rider that will be available for both new and existing SunWise Elite contracts, with a minimum investment per policy of $25,000. It offers a number of benefits to clients:
- Guaranteed, predictable income for life, starting at age 65 or later.
- Potential for growth as investors can allocate up to 90 per cent of their portfolio to equity investments.
- Flexibility, with Canada’s first income deferral feature on a GMWB, which allows the client to accumulate unused withdrawal room of up to 15 per cent.
In addition, SunWise Elite Plus provides investors with a five per cent bonus on their guaranteed income for every year they do not make a withdrawal in the first 15 years following the initial deposit to the GMWB rider. This means that by not making withdrawals in the first 15 years, an investment made at age 50 will increase the guaranteed income by at least 75 per cent by age 65. This is a valuable feature for investors saving for retirement because it increases their guaranteed income and reduces the worry that a market downturn could impact their savings in the crucial years just before retiring.
“How your investments perform in the period leading up to your actual retirement is crucial to your overall retirement income,” said Connor. “SunWise Elite Plus provides customers with the peace of mind that their investments will maintain their value, and that they’ll have a guaranteed income stream for life.”
Seven new funds are being added to the SunWise Elite lineup, including three new Cambridge Funds managed by Alan Radlo. This brings the total to 54 funds, making it the most extensive segregated fund lineup available in Canada with GMWB income for life. The lineup is well diversified by region, asset class, investment style and portfolio manager and includes portfolio management teams from a variety of leading fund companies in addition to CI Investments. The seven new funds will be:
- SunWise Elite CI Signature Global Income & Growth Fund
- SunWise Elite CI Cambridge Canadian Asset Allocation Corporate Fund
- SunWise Elite CI Cambridge Canadian Equity Corporate Fund
- SunWise Elite CI Cambridge Global Equity Corporate Fund
- SunWise Elite Northwest Growth & Income Fund
- SunWise Elite Manulife Global Monthly Income Fund
- SunWise Elite Manulife Global Opportunities Fund.
More information about SunWise Elite Plus and guaranteed income for life will be available through financial advisors, and at www.ci.com. The above description is subject to the more detailed terms and conditions contained in the SunWise Elite Plus individual variable insurance contract, which includes important terms regarding early or excessive withdrawals.
SunWise Elite Plus policies are issued by Sun Life Assurance Company of Canada and managed by CI Investments. Sun Life Assurance Company of Canada is a member of the Sun Life Financial group of companies.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Assurance Company of Canada is a member of the Sun Life Financial group of companies. As of December 31, 2007, the Sun Life Financial group of companies had total assets under management of $425 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF. www.sunlife.ca.
About CI Investments
CI Investments Inc. is one of Canada’s largest investment fund companies with $53 billion in assets under management. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com. CI is controlled by CI Financial Income Fund (TSX: CIX.UN), an independent, Canadian-owned wealth management firm with approximately $98.6 billion in fee-earning assets as of February 29, 2008.Tags: Sun Life