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Investment for Boomers
Manulife Investments soars through $3 billion in sales for Canada's first guaranteed minimum withdrawal benefit product
Boomers drawn to protection and potential market growth
TORONTO - In just more than 14 months since its original launch, sales of GIF Select featuring IncomePlus ended 2007 at almost $3.4 billion. In December alone, sales reached a record $680 million for Canada's first Guaranteed Minimum Withdrawal Benefit (GMWB) product designed to help Canadians save, protect and grow their retirement savings.
Launched in October 2006 by Manulife Investments, IncomePlus appeals to
Canadian boomers entering the "Retirement Risk Zone" - the five-to-ten years
before and after they reach retirement - when their portfolios are most
vulnerable to market downturns and volatility as witnessed in recent weeks.
IncomePlus provides guaranteed monthly payments independent of when an
investor retires in the market cycle, as well as growth potential, flexibility
and control.
"Canadians have shown they understand and see a definite need in their
financial plans for this type of product, similar to the strong appeal we've
seen for similar products in the U.S.," said J. Roy Firth, Executive Vice
President, Manulife Financial. "The popularity of these products with
Canadians speaks to the current mindset of today's boomer - they want
protection when markets are volatile and growth when markets are good. This
product gives them that, and more."
In October 2007, Manulife Investments enhanced IncomePlus to provide
investors with guaranteed monthly income for life, to address a growing
financial concern among older Canadians of outliving their savings. With
IncomePlus, investors have downside protection for their principal investment;
upside potential that can increase payments for life; flexibility and control
over investments with complete access to the market value of their funds at
anytime if needed.
In addition, investors now receive a five per cent bonus on their
guaranteed income for each year they don't make a withdrawal, for up to 15
years. That means investors can better plan for retirement knowing that their
guaranteed income for life can increase each year, regardless of market
conditions.
IncomePlus includes a wide range of funds managed by some of the top fund
managers in Canada. The Canadian Investment Awards has also recently
recognized IncomePlus as a powerful retirement solution awarding IncomePlus
with "best new initiative" in 2007. In addition, Manulife remains the only
financial institution in Canada with a "AAA" S&P credit rating to offer a GMWB
product.
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