Sun Life Financial of Canada ready for age 77 changes

Sun Life Financial of Canada has announced that it is preparing to accommodate the changes proposed by the ‘Age 77' rule, as announced in the first budget delivered by the Coalition Government in June 2010.

Whilst the Government continues with its consultation, Sun Life Financial of Canada, which provides flexible retirement solutions through its innovative i2Live product, is already updating its systems to offer existing customers aged 75 the ability to keep their funds in the income drawdown part, thus offering them greater choice and the ability to keep their options open until the final shape of the new regime is announced. Sun Life Financial of Canada will be ready to apply the ‘Age 77' rule on the 16 August 2010.

Mark Stopard, Head of Marketing at Sun Life Financial of Canada, said: "The Treasury's decision to review the archaic age 75 rule was long overdue.  However, it was a very welcome part of June's Budget. The key for providers now is to gear themselves up to support both the intermediary market and consumers, by delivering effective and innovative retirement solutions that fill the void between now and the announcement of new rules.

"Sun Life Financial of Canada firmly supports any legislative progress which provides consumers with more options when it comes to saving, investing and taking a flexible income. We believe we are one of the first providers to be geared up to offer the greater flexibility and choice of continuing income drawdown (‘USP') for those approaching the compulsory annuitisation age, allowing them to make an informed choice once the new rules have been drawn up.

"We eagerly await the findings of the consultation when we hope the long term options will be much clearer to both advisers and their clients."