Sun Life Financial has introduced Sun Income Maximizer and Sun Income Maximizer Plus, a living benefits solutions to address the risks faced by Americans when planning for withdrawing income from their retirement savings.
Sun Life said that the new solutions are designed to help investors protect and maximize their retirement income in any financial market environment and are available with the Masters variable annuities for an additional cost.
According to the Sun Life, the Sun Income Maximizer Plus offers many of the same features as Sun Income Maximizer, plus the benefit of protecting the purchasing power of retirement income from rising costs.
Sun Income Maximizer protects retirement income in the event of down markets, and provides lifetime income growth through one of the guarantee that include: an 8% simple interest bonus, available during the first 10 contract years for each year prior to taking withdrawals, is added to the benefit base.
The other guarantee states that an increase of the benefit base equal to at least 200% of the first year’s purchase payments if the client waits until age 70 (or 10 years from issue, if this date is later) to take lifetime income payments.
In addition to providing several of these same benefits, Sun Income Maximizer Plus helps investors to keep pace with rising costs. When the withdrawal of retirement income begins, both the investor’s benefit base and lifetime income automatically increase each year at a compounded rate of 2.50%, providing the client with a dependable, increasing cash flow every year for life – even if markets decline.
Sun Life Financial Distributors president Terry Mullen said these benefits will allow the financial advisors to provide powerful retirement income solutions to a wider group of clients — those that are more risk averse and are focused on preserving their wealth.