If you’re approaching retirement, chances are you’ve focused on saving. Now you face the challenge of turning your hard-earned savings into income that will last your lifetime.

You need to protect your savings against three key retirement risks.

• Longevity risk – You might outlive your savings.
• Market return risk – You might experience poor market returns during the five years before retirement or the five years after. This period is often referred to as the retirement risk zone. If you experience market losses during this period, you have only a short time to rebuild your savings. Losses before retirement can mean having to work additional years. Losses immediately after retirement can mean having to return to work or risk depleting your savings too quickly.
• Inflation risk – Your retirement savings might not earn enough to keep up with inflation. This risk is greater in retirement, because your expenses can keep increasing, while your income may not.

Take control of your retirement income

A lifetime income benefit puts you in control of your retirement savings and income by guaranteeing your income for life. So long as you don’t withdraw more than the guaranteed annual amount, your lifetime income amount will not decrease.

A lifetime income benefit can provide:

• Predictable, guaranteed income for life, beginning as early as age 50
• An income percentage that increases as you age
• A smooth transition from savings to income

While your lifetime income may not decrease, it can increase. For example, you can increase your lifetime income by deferring withdrawals until you really need them. In addition, you can automatically lock in market gains every few years and increase your lifetime income that way.

Is a lifetime income benefit right for you?

A lifetime income benefit is most appropriate for people getting ready to retire and for retirees looking for secure, predictable, guaranteed income. It works best for people who do not already have enough guaranteed income from government benefits, company pension plans or life annuities. To purchase a lifetime income benefit, you must normally be between 50 and 90.

A lifetime income benefit is just one component of a well diversified retirement income portfolio. It is generally purchased as an option on a segregated fund policy, so for a description of specific features, see the policy’s information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

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