Available for an additional cost with most Sun Life Financial Masters variable annuities today, this option complements boomers’ investment strategies of accumulating wealth by allowing them to defer part or all of the annual withdrawals permitted under the benefit and to store those withdrawals in the contract for future use, a Sun Life Financial news release said.
The current annual charge for this option is 0.65% of the Income Benefit Base for a lifetime guarantee for one individual, and 0.85% if clients want income to also continue for their spouses if they outlive them, Sun Life said.
According to the company, the new offering allows investors to:
- Secure lifetime income for themselves (as well as their spouses if they choose). This income is equal to 5% of their Income Benefit Base.
- Storedeferred withdrawals in a Stored Income Balance. Any amounts in the Stored Income Balance can be withdrawn in a future year in addition to the annual amount available in that year.
- Restorethe account value to the sum of the purchase payments made in the first contract year, if no withdrawals have been taken within the first 10 years and a down market has driven the account value on the benefit maturity date below the total of the first-year purchase payments.
- Sun Life Financial’s wholesalers have received training to serve as Retirement Income Consultants (RIC). Each RIC will focus on helping advisers tailor flexible income plan for clients.
Other key features include, according to the company:
- Starting at age 55, clients can begin storing the payments they’re guaranteed to receive from their annuity.
- As long as the Income Benefit Base is greater than zero, a client’s lifetime withdrawal benefits will continue – even if the account value has been depleted.
- Withdrawals within the maximum amount allowable will have no impact on any future income amount guaranteed for life.
More information is at www.sunlife-usa.com .