Manulife PensionBuilder is a straight-forward, low-risk investment that allows you to convert some of your retirement savings into a source of dependable income that you can’t outlive. Whether you’re building for your retirement or are in the retirement stage of your life, you can look to Manulife PensionBuilder to supplement existing guaranteed income sources or to create a new income source on which you can rely.
At a Glance Pro’s:
Manulife has been the pioneer in the GMWB landscape in Canada, and has accumulated tens of billions of dollars in deposits. They have a very simple and effective tool to create a Guaranteed stream of Income for life, and have the financial strength to stand behind the lifetime guarantees.
At a Glance Con’s:
The only Fund available for deposits is the Manulife PensionBuilder Fund. It is a mix of Corporate, Federal and Provincial Bonds. This is the only investment option available for new and future deposits. If your investment mix needs to be a little more aggressive, then this fund is limited in investment style.
You are given a standard 75/75 Guarantee; 75% Principle Guarantee after 10 years; and a 75% Death Benefit Guarantee from Contract issue. Death Guarantee resets until the age of 80.
Annual Income Base Interest Rate Credited (or Market Value, whichever is higher):
Range from 3-1/2% – 6% Based upon your age of Deposit. The younger you are at Deposit, the higher your Income base will be approaching Retirement.
Account Automatic Market Value Resets:
Every 3 years.
Guaranteed Minimum Income for Life:
All rates are based upon your Deposit start date and your Income start date. Guaranteed Income for Life can start as early as 50 years old.
MER Fee including Income for Life fee:
Since their is only 1 Fund to invest into the MER is 2.75% in most cases, larger deposit amounts will decrease the MER slightly to 2.0% and 2.25%.
S & P Rating based upon Financial Stability and Strength:
Rating of A+