Industrial Alliance (iA) has launched a new version of its SecurOption group retirement product.
SecurOption allows employees who are enrolled in a DPSP or group RRSP to have guaranteed lifetime retirement income when they retire. Pension plan members use a calculator to determine the percentage of each contribution that they want to allocate to SecurOption, and these funds are deposited into an accumulation account and used periodically to purchase a deferred life annuity. The default option is for a deferred, 10-year guaranteed life annuity, payable at age 65, although depending on the contract terms retirees may be able to choose a different type of annuity.
iA says that the new version allows for the annuity to be increased according to the amount and that all data has now been integrated into its tools, which it says should make the retirement planning process significantly easier.
“SecurOption addresses our clients' dire need for income security,” comments Renée Laflamme, executive vice‑president of group benefits and retirement solutions at iA. “Many members of defined contribution retirement plans have less tolerance to risks related to financial markets, worry about outliving their savings, and look for new ways to ensure a guaranteed retirement income supplement for their retirement.”