Industrial Alliance Launches Ecoflextra – a Lifetime Guaranteed Retirement Income Product
A Flexible Investment Solution That Guarantees a Lifetime Income With all the Growth Potential of the Market
ndustrial Alliance Insurance and Financial Services Inc. is pleased to announce the launch of Ecoflextra, its new retirement income product that offers the two most sought-after features for retirement: protection and growth. Ecoflextra effectively ensures investors of a retirement income guaranteed for life, while allowing them to profit fully from all the growth potential of the market. Ecoflextra also offers investors the possibility of being credited a 5% bonus on their guaranteed income for the first 15 years of the contract if no withdrawal is made.
"All retirees and anyone planning their retirement know that they have to protect themselves from three risks that could compromise their retirement income: the risk of depleting their investments during their lifetime, the risk of diminished purchasing power due to inflation and the risk of a sizeable decline in the value of their investments following a downturn in the stock markets," explained Bruno Michaud, Senior Vice-President, Administration and Sales. "Ecoflextra offers a solution to manage all these risks. It provides a lifetime retirement income that is secure and predictable, with the possibility for investors to profit from potential market upswings, and even to take advantage of a bonus. Ecoflextra is therefore the ideal investment tool for a retirement without financial worries."
Ecoflextra includes numerous advantages to satisfy clients’ various needs:
- Annual retirement income equivalent to 5% of investments, for life or for a minimum period of 20 years, which allows the investor to recover their entire investment, even if markets abruptly go down
- A yearly bonus of 5% of the guaranteed income, for the first 15 years if no withdrawal is made during the year, which gives the investor a yield that can reach 75%, no matter the market returns
- Guaranteed resets every three years during market upswings, which can increase the minimum guaranteed income as well as the bonus amount
- A 100% capital guarantee at death, reset every three years
- Access to more than 38 investment funds managed by renowned professionals in Canada and abroad
- Transfers between funds, without fees
- Possibility of redeeming funds at all times, if needed
- Increased flexibility
Furthermore, Ecoflextra stands out from other products on the market by its considerable flexibility. For instance:
- Investors can carry forward their unused income and surrender it over subsequent years
- Aggressive investors who want to invest 100% of their funds in stocks can do so at age 65 by choosing an income guaranteed for a 20-year period
- Fees related to the guaranteed income, in addition to competitive management fees, are deducted on a quarterly basis, instead of the full amount being deducted at the beginning of the year
- Clients can invest inside the Classic Series investment funds to meet an occasional need for cash–such as the purchase of a car–without a penalty on the contract guarantees
"After consulting our clients and our partners, we decided to offer a flexible product that adapts to the client’s specific needs," said Mr. Michaud. "For example, no other retirement income product offers as many investment options: Guaranteed Interest Funds equivalent to Guaranteed Investment Certificates, two series of investment funds–one offering a guaranteed income and the other allowing occasional withdrawals–and a Life Investment that is the only one of its kind in the market."
Ecoflextra also allows investors to profit from all the advantages of segregated funds, such as the possibility of avoiding probate fees, protection against potential creditors and avoiding surrender fees at death.
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fifth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group, which has operations across Canada as well as in the western United States. Industrial Alliance contributes to the financial well-being of over 3 million Canadians, employs more than 2,900 people and manages and administers over $50 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.
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Vice-President, Investor Relations
Office: 418 684-5275