Pensionize® Your Nest Egg: Tools to Help with your Decisions
 
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Implied Longevity Yield (ILY)
The Implied Longevity Yield™ (ILY) tool measures the yield (or return) you would need to receive from an alternative investment in order to keep up with the income generating capability of an income annuity.

The ILY calculation helps answer the question, "what yield would I need to earn from an alternative liquid investment that would pay me the same monthly income as a lifetime income annuity over a specified waiting period, while also leaving me exactly enough money to purchase the same stream of annuity income after that period is over?".

By comparing the ILY to the return from an alternative liquid investment with similar levels of guarantees over the waiting period, you can quantify any additional return from an income annuity.

The ILY analysis is based on values you enter, including your age, gender, and the waiting period you select.
 
Sample report for:  USA  |  Canada
 

What if I Wait? Analyzing the Annuity Decision
The ILY tool, described above, does not take future changes in interest rates into account. If you think that interest rates might rise in the coming years, does that mean you should wait to pensionize?

The "What If I Wait?" tool helps in analyzing the impact of changes in interest rates on annuity payouts, and takes into account values you enter, including age, gender, the number of months you expect to wait and the income you plan to withdraw from your portfolio while waiting, and more.
 
Sample report for:  USA  |  Canada
 

The Pensionize Value Proposition: Understanding the Cost-Benefit Trade-off of Pensionizing Your Nest Egg
When purchasing an income annuity, there can be a trade-off between the amount of income you receive during your lifetime, versus the amount you expect to leave as an estate. This trade-off arises because the funds used to purchase an income annuity are not available to form part of your estate.

Whether the decision to pensionize some portion of your nest egg is financially beneficial or not (that is, whether the trade-off between income in retirement and estate value is beneficial or not) depends on factors including how long you survive in retirement, and thus the total amount you receive as income from the life annuity.

One way to think about the value proposition of an income annuity is to find the point at which the cost to your estate after the purchase of an income annuity is outweighed by the additional income you receive from the income annuity.

This tool illustrates this trade-off by showing the point at which these two factors balance (the cost to the estate is outweighed by the income from the annuity), and also provide more information on the potential benefits of pensionizing your nest egg.
 
Sample report for:  USA  |  Canada
 

Survival Probability Tool
What's the chance you will live to an advanced age? What about your spouse? What's the chance at least one spouse will live to an advanced age?

The Survival Probability tool allows you to identify the likelihood you, or you and your spouse, will live a given number of additional years.
 
Sample report for:  USA  |  Canada
 

The Pensionize Your Nest Egg Tool (RSQ and EFL)
What are the Retirement Sustainability Quotient (RSQ) and Expected Financial Legacy (EFL) of your retirement spending plan?

The Pensionize Your Nest Egg tool allows you to select values for age, desired income, asset allocation and more in order to assess the sustainability and legacy values associated with a specific spending plan.
 
Sample report for:  USA  |  Canada
 

Internal Rate of Return (IRR)
The Internal Rate of Return (IRR) is a measurement typically used to evaluate the investment performance of a number of products like a bond, CD or a GIC. Your IRR from an income annuity depends on how long you will live, which is unknown. This analysis provides a way to view the return of an income annuity by graphing the IRR you will receive against your future longevity.
 
Sample report for:  USA  |  Canada
 

 
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