SunWise Elite Plus | Guaranteed Minimum Withdrawal Benefit (GMWB)

Guaranteed income protection for pre-retirees

EmmaStory of Emma

At 50, Emma invests her retirement fund of $150,000 in SunWise Elite Plus. Her retirement is 15 years away and she doesn’t plan to make any withdrawals over that time. So, for the next 15 years, plus the initial year, she is guaranteed to receive a 5% annual income bonus for every year without a withdrawal.

At age 65, Emma’s LWA Threshold is established for the first time at $266,875 and her guaranteed LWA income has risen to $13,344, even though the markets have declined significantly. SunWise Elite Plus ensures the growth of Emma’s retirement income in the critical years immediately before retirement.

SunWise Elite Plus features a 5% annual guaranteed income bonus which offsets the effects of market volatility prior to retirement to help your clients reach their retirement target.

  • > An annual 5% guaranteed income bonus* will be allocated to the GWB for every calendar year your client does not
    make withdrawals.
  • > The bonus is calculated and credited at the end of each calendar year.
  • > After investors select the GMWB rider, the bonus is applicable on a prorated basis for the initial year plus the
    next 15 full calendar years.

5% annual guaranteed income resets bonus for up to 15 years**

5% annual guaranteed income Resets bonus for up to 15 years**

SunWise Elite Plus is also for clients who want an income prior to age 65. If Emma had retired immediately she would have received $7,500. If she retired at age 55, her Guaranteed Withdrawal Amount would have grown to $9,594for 20 years with the GWA option.

The GMWB is tax-effective for non-registered accounts because withdrawals
are considered return of principal and capital gains, rather than income.

* Illustration assumes a 70% equity/30% fixed income asset mix (Equity is one-third each S&P/TSX Composite Index, S&P 500 Index, and MSCI World Index; income is DEX Universe Bond Total Return) and a bear market declining on average 2% per year. Annual withdrawals are assumed to be 5% of the LWA Threshold Amount. Subject to legislative minimums and maximums and certain conditions.

 

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