Offering to Get you Out of a Product

Rob Carrick of the Globe and Mail reports on how Manulife is offering to get people out of their IncomePlus Guaranteed retirement income product sold between 2006 and 2009 and switch into a different GIF series 75 segregated fund product. The product came with a guarantee that the person could withdraw 5% of their investment per year for life.  As noted by Mr. Carrick, these kind of products have high fees which are composed of two parts – the fee charged by the segregated fund and the fee charged with the guarantees of the product (the example he cites is a 4.16 fee with IncomePlus). FAIR Canada recommends that people seek professional, unbiased, advice in order to understand their options as these products are highly complex and, as Mr. Carrick explains, whether to stay, switch or consider any other possible options , will depend on your own particular circumstances (now and in retirement).

October 04, 2018