LifeWorks report outlining how Longevity provides lifetime income at sustainable monthly distribution levels to Canadian retirees is now available
TORONTO, Feb. 23 12, 2022 (GLOBE NEWSWIRE) — Purpose Investments Inc. (“Purpose”) is pleased to announce that an independent review prepared by LifeWorks (formerly known as Morneau Shepell) that rates pension fund Longevity (“Longevity” ) or “the Fund”) to provide lifetime income to Canadian retirees is now available.
The Longevity Pension Fund is the world’s first lifetime income mutual fund to provide lifetime income to Canadian retirees. Before Purpose launched Longevity on June 1, 2021, the Toronto-based company worked with LifeWorks, a leader in retirement advisory services, to complete an actuarial review of the fund. The results of this review validated Purpose’s underlying assumptions that the Fund could achieve initial lifetime income rates starting at 6.15% for investors age 65 and that Longevity distribution levels are expected to increase with time in the majority of cases due to the risk pooling structure and the conservative assumptions used to set the initial rates.
“We created Longevity to solve one of the biggest social challenges we face in Canada: income insecurity among retirees. To achieve this and fulfill our mission of empowering retirees, we have taken the time to design Longevity’s structure thoughtfully and precisely. Today, we’re excited to share LifeWorks’ review of our fund’s income policy, which details how our community of investors will achieve income security so they can live the life they aspire to. retirement,” said Som Seif, founder and CEO of Purpose Investments.
To demonstrate Longevity’s ability to achieve its objectives, Purpose has developed an income policy statement to clarify how, when and to what extent distribution levels will be changed, based primarily on market returns and the rate at which investors leave. the Fund over the years (voluntarily or by death). LifeWorks has been engaged to review this income policy and provide feedback on Purpose’s ability to achieve the Fund’s objectives of providing lifetime income to investors and maintaining stable levels of income that have a high probability of increasing with the weather.
LifeWorks’ review of Longevity’s income policy shows that with the policy as written, even in the worst-case scenarios modeled, the Fund would adjust distribution levels to ensure it is sufficiently funded to continue to pay income for life.
“We built this Fund with the idea of achieving results similar to a defined benefit plan, but by democratizing the solution so that it is accessible to everyone. The Fund’s ambitious goal is not just to give retirees income for life, but to provide monthly income designed to grow over time, which would help protect investors from inflation,” Fraser Stark said. , president of Longevity. “We have more than good intentions for the Fund – that’s why we asked experts at LifeWorks to review the structure of the Fund before launch and then review our income policy to ensure that the Pension Fund can really do what we set out to do: redefine retirement with income for life.
For more information on Longevity’s income policy and LifeWorks report on the fund, please visit www.retirewithlongevity.com/fund/performance-distributions.
About the Longevity Pension Fund
The Longevity pension fund is the first product launched as part of a new holistic retirement solutions platform launched by Purpose. To learn more about the Fund’s and Purpose’s mission to help Canadians redefine retirement with income for life, please visit www.RetireWithLongevity.com.
About Purpose Investments
Purpose Investments is an asset management company with approximately $14 billion in assets under management. Purpose relentlessly focuses on customer-centric innovation and offers a range of results-driven products. Purpose Investments is led by renowned entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-focused financial services company.
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Distribution income from the Fund is not guaranteed, and the frequency and amount of distributions may increase or decrease.
The Fund has a unique mutual fund structure. Most mutual funds redeem at their associated net asset value (NAV). By contrast, redemptions in the Fund’s cash class (whether voluntary or upon death) will be made at the lower of net asset value or original investment amount less distributions received. You can always access the lesser of your unpaid principal (original value of your investment less any income payments made) or your net asset value. Charges may apply. Commissions, trailing commissions, management fees and expenses all may be associated with the Longevity Retirement Fund. This communication is not investment advice and is not tailored to the needs or circumstances of any specific investor. Speak with your investment advisor to determine if the Longevity Pension Fund is right for you and always read the prospectus before investing. There is no guarantee that the full amount of your investment in a fund will be returned to you. Investments in the Fund are not guaranteed, investment values in the Fund change frequently and past performance may not be repeated.
Certain statements contained in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend on or refer to future events or conditions, or include words such as “may”, “will”, “should”, “could”. , “expect”, “anticipate”, “intend”, “plan”, “believe”, “estimate” or other similar expressions. , actions or events may differ materially from those stated in the FLS. The FLS are not guarantees of future performance and are, by their nature, based on numerous assumptions. Although the FLS contained herein are based on what Purpose Investments considers to be reasonable assumptions, Purpose Investments cannot guarantee that actual results will conform to these FLS. Readers are cautioned to review the FLS carefully and not place undue reliance on the FLS. Except as required by applicable law, this is not undertaken, and more particularly d is claimed to ex ists an intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.