Guaranteed Minimum Withdrawal Benefit Contracts (GMWBs)

GMWBs are riders that can be added or included on segregated fund contracts. Introduced to the Canadian
marketplace in late 2006, they have quickly become very popular with investors nearing or already in retirement.

The key features of the GMWB rider include:

  • An annual guaranteed bonus/credit in the years in which you are accumulating assets and choosing to defer income
  • A guaranteed lifetime income - once past a specific age - that can potentially increase over time
  • All the growth potential of the market
  • Periodic resets to lock in market gains, regardless of whether you are deferring or taking income