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Home Financial Health Blog A Personal Defined-Benefit Pension Plan

A Personal Defined-Benefit Pension Plan

by Tim Weichel

Retirement income protection: The Guaranteed Lifetime Withdrawal Benefit

When you choose a “Guaranteed Lifetime Withdrawal Benefit” (GLWB) option with a Segregated Fund, your retirement income is guaranteed for life and will never decrease, even in market downturns. Better still, this guarantee also offers you the possibility of increasing your income.

Why choose a GLWB?

  1. Guaranteed retirement income for life. With the GLWB, you’ll receive income for life that will never decrease, even in market downturns.
  2. Income increases: resets and bonuses. Your GLWB protected value, and consequently your retirement income, could increase in the following situations:
Resets How How often Result
Based on the markets Incorporates market gains into your income. Every three years, when the market value is higher than the GLWB protected value. Your retirement income goes up.
Based on your age Increases your GLWB withdrawal percentage based on your age. When there is a market-based reset.

3. Bonus!

How How often Result
Increases the GLWB protected value by between 2.5% and 8%. Every year that you don’t make a withdrawal. Your retirement income goes up.

4. Capital guaranteed at death

In the event of your death, the value of your contract is 100% guaranteed and will be paid confidentially to your beneficiary within just a few business days.2This value will also be reset every three years based on market upturns.

Your annual income is determined when you make your first withdrawal. If you make this withdrawal as soon as you set up your contract, it will be a percentage of your initial deposit based on your age.1

Annuitant’s age at first withdrawal GLWB withdrawal percentage (one Annuitant)
55 to 59 3%
60 to 64 3.6%
65 to 69 4.1%
70 to 74 4.6%
75 and up 5%

From that point on, the GLWB protected value will be used instead of the value of your initial deposit. This value will not drop if the markets do, and could even increase with resets and bonuses.

5. Choice of investment options (minimum $25,000 initial deposit)

Helios2 – 75/100 GLWB gives you access to the full growth potential of the markets:

Calculate how much you’ll need to deposit

Simulate the effect of the market on your income

Find out your life expectancy

Send me an email at tim@timweichel.ca or call me today 705-798-0062 or 416-230-2703 to find out more and arrange your RRSP or TFSA deposit for this year. 

1 Any withdrawal made before age 55 or exceeding the GLWB Maximum Amount is considered a GLWB Excess Withdrawal and decreases the GLWB Protected Value.

2 Conditions apply, including receipt of the appropriate documentation, such as the death certificate. You must name the BeneficiaryThe person you have designated to receive the Death Benefit under your Contract. or Beneficiaries to whom the Death Benefit will be payable.

All information presented on this site is for illustration purposes only and is in no way an indication of past performance or future results.

On this site, the reader is both the Contract Owner and the Annuitant. If in your case these are not the same person, please see the Contract and Information Folder.

Click on the underlined terms in green to access their definition. These are defined terms of the Helios2 Contract that can be found in the glossary of the Contract and Information Folder.

The Contract and Information Folder (PDF, 3.5 MB) Opens in a new window. contains important information on the Desjardins Financial Security Guaranteed Investment Funds Plan – Helios2 and the DFS Guaranteed Investment Funds. Please note that our defined terms can be found in the Contract and Information Folder. Please read it carefully before investing.

Helios2 is a trademark owned by Desjardins Financial Security Life Assurance Company. DFS Guaranteed Investment Funds is a registered trademark owned by Desjardins Financial Security Life Assurance Company. DFS Guaranteed Investment Funds are established by Desjardins Financial Security Life Assurance Company.

DFS stands for Desjardins Financial Security.

 
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