>> outliving retirement savings
>> The erosion of purchasing power from inflation
>> Savings being depleted at a faster rate because of a bad timing of market returns.

A GMWB product addresses these risks in a way that a long term diversified approach to investing alone fails to address.With the introduction of the GMWB feature, segregated funds have become more attractive as it offers an additional capital guarantee that is designed to protect a client’s capital from adverse market conditions. The benefit of using this protection is that an investor can ride out the turbulent market conditions, while sticking to their long term investment objective without having to compromise their retirement lifestyle. If the markets do well, the portfolio can lock into higher guaranteed values and secure the portfolio from the effects of inflation. If the markets do poorly, the client can benefit from the protection of the guarantees so they know their money is there when they need it.

How GMWB works
When you invest in GMWB product you are guaranteed to receive a predictable income, starting the year you turn 65 (Some plans will start as early as you turn 55). The guaranteed retirement income will continue for as long as you live.