The PRO SSQ Guaranteed Income Funds are designed to offer guaranteed income payments for life starting at age 65. Guaranteed income payments are also available for those younger than 65 and they will have the option to convert to a lifetime income stream at 65.
The minimum investment is only $10,000.
These products are designed to provide peace of mind through predictable income no matter what happens to the markets.
Guaranteed IncomePro-Guaranteed Income Funds are segregated funds that offer Guaranteed Minimum Withdrawal Benefits. If you are 65 years or older, you can guarantee an income stream for life based on 5% of your lump sum contribution – no matter what happens to the market.
If you are younger than 65, you can secure a 5% income stream for a minimum of 20 years AND when you turn 65 you will have the option to switch to the lifetime income stream.
For example, if a 65 year old contributes $100,000 to one of these funds, the absolute worst case scenario is that they will receive an annual income of $5,000/year until they die – even if the market only went down forever. On the other hand, if the markets perform well, it is possible that your income stream can increase. But it can never go down.
5% BonusIf you have time before you require an income, any contributions to the PRO-SSQ Guaranteed Income Funds will generate a 5% notional bonus annually, in any year in which you do not make a withdrawal.
For example, if you are 50 when you contribute $100,000 to a portfolio and do not require an income until you turn 65 then the worst case scenario is that you will receive a 5% notional bonus for 15 years. This notional bonus is added to your initial contribution in order to determine your income stream when you want to start making withdrawals. In this case, a 5% bonus per year equals $5,000. $5,000 multiplied by 15 years equals $75,000. Therefore, when you turn 65, the 5% income stream is based on $175,000 as a worst case scenario. This equals an annual income of $8,750.
5% Income For Life (At Age 65)It is possible to guarantee an annual income for life starting in the year you turn 65 with the new PRO SSQ Guaranteed Income Funds.
If you are younger than 65, you will receive a minimum 20 year guarantee which can be extended based on market performance, but it can never be shortened. Further, once you turn 65 you will have the opportunity to select the income for life option.
The amount of the income is 5% of your GWB, or Guaranteed Withdrawal Balance. The GWB is made up of your initial contribution plus any notional bonuses as a worst case scenario. The GWB can only increase from this amount (due to market performance), and it cannot go down (less withdrawals of course).
So if you start with $100,000 invested, you will guarantee an annual $5,000 income for the rest of your life if you start at age 65. This annual income amount can only go up.
