Income Policy
The Longevity Pension Fund provides retirees with income for life through monthly distributions. How much money you get a month will be evaluated and adjusted each year based on returns and redemptions from the year before. We’ll give you 60 days’ notice if there is any change.
Income policy steps to managing the distributions
Step 1
Similar to how a pension is managed, we take a funding-level approach to compare the Fund’s assets with the present value of expected future liabilities.
Step 2
The long-term funding-level target is 100%; however, this may be higher in the earlier years of a cohort to provide additional stability in distribution levels.
Step 3
The distribution levels are adjusted annually to bring the funding level to its target, which ensures the cohorts are adequately funded to provide income for life.
Key Stats from the 2023 Annual Report by TELUS Health*
Stable income
For a 65-year-old, the distribution levels are at or above the initial starting rate of 6.15% in 81.8% of the cases, and at or above 4.15% and 3.15% in 97.7% and 99.6% of the cases, respectively.
Attractive rates
The expected average distribution levels for a 65-year-old is 7.4% and 8.6% over a 20-year and 35-year period, respectively.
Income for life
The fund successfully paid income for life in 100% of the scenarios modelled.
Monthly income for life
Powered by this innovative and dynamic structure, every investor in Longevity can count on receiving income from the fund for as long as they live.
For more information, download the Annual Report prepared by TELUS Health (formerly known as Morneau Shepell).
For additional details on Portfolio and Performance, please click the button below:
To better understand the potential outcome of distribution levels from the Fund, the Income Policy was reviewed by TELUS Health (formerly Morneau Shepell) and put to the test against their Economic Scenario Generator that simulates 2,000 potential future paths of economies and financial markets.
The Longevity Pension Fund is managed by Purpose Investments Inc. Information provided on this page is not investment advice, nor is it tailored to the needs or circumstances of any investor. Talk to your investment advisor to determine if the Longevity Pension Fund is suitable for you and always read the prospectus before investing. Commissions, trailing commissions, management fees and expenses all may be associated with the Fund. Investments in the Fund are not guaranteed, and the Fund's value may change frequently. Past performance may not be repeated. Income in the form of Fund distributions 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). In contrast, redemptions in the decumulation class of the Fund (whether voluntary or at death) will occur at the lesser of NAV or the initial investment amount less any distributions received.
Information contained in this webpage is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice. Forward-looking statements are not guaranteed. Certain statements on this site may be forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend on or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained in this document are based upon what Purpose believes to be reasonable assumptions, Purpose cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on the FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed, that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.