Purpose Investments Inc. (“Purpose”) today announced a partnership with LifeWorks, a leader in retirement recordkeeping and consulting services, to offer the Longevity Pension Fund (“Longevity”) by Purpose as an option for defined contribution (“DC”) plan sponsors starting today.
The Longevity Pension Fund is the first income-for-life mutual fund designed for Canadians in retirement. Similar in design to a defined benefit pension, Longevity distinguishes itself from other mutual funds by incorporating longevity risk pooling to provide lifetime income for Canadian retirees. Its unique design follows investors throughout the entire retirement planning journey, from retirement saving (“accumulation”) to providing sustainable income during retirement (“decumulation”).
“The challenge of turning financial assets into lasting retirement income is considerable and only growing larger as fewer Canadians have defined benefit pension plans through their employers,” says Fraser Stark, President, Longevity Retirement Platform at Purpose Investments. “We built Longevity with the idea of achieving outcomes similar to a defined benefit plan but democratized so that it’s accessible to everyone. Today marks an exciting milestone for us, as through our partnership with LifeWorks, we’re excited to bring this innovation to even more people.”
LifeWorks is a wholly owned subsidiary of TELUS, now operating as part of TELUS Health as a result of its recent acquisition. As one of the largest record keepers in Canada, they are a leader in designing and delivering wellness strategies, including retirement programs.
“Longevity protection is one of the toughest challenges for defined contribution pension plans to solve,” says Idan Shlesinger, Executive Vice President and President Retirement & Financial Solutions. “We at LifeWorks are inspired by Purpose Investments’ Longevity Pension Fund and are very excited to be the only DC recordkeeper in Canada to offer this innovative investment product to registered DC pension plans.”
This partnership is another step in the continued relationship between Purpose and LifeWorks. Before Longevity was launched on June 1, 2021, as well as in early 2022, LifeWorks conducted actuarial reviews on the fund. The results of those reviews validated that Longevity could achieve the initial lifetime income rates, and that those rates should increase over time in the majority of cases.
With Longevity available as an option on LifeWorks’ platform, it will become easier for plan sponsors to incorporate a decumulation solution seamlessly for their plan members who do not have access to a defined benefit pension. It is the next step in Purpose’s plan to incorporate the fund into several plan sponsor programs to help redefine retirement for Canadians who do not have access to a defined benefit pension.
About Longevity Pension Fund
The Longevity Pension Fund is the first product released as part of a new holistic retirement solutions platform launched by Purpose Investments. For more information about Longevity and Purpose’s mission to help Canadians redefine retirement with income for life, please visit RetireWithLongevity.com.
About Purpose Investments
Purpose Investments Inc. (“Purpose Investments”), an asset management company with over $13 billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Unlimited, an independent technology-driven financial services company.
Contacts
For further information about Longevity, please contact:
Pat Leo
patl@purposeinvest.com
For media, please contact:
Keera Hart
keera.hart@kaiserpartners.com
905-580-1257
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. The prospectus contains important detailed information about the investment fund. Please read the prospectus before investing. There is no assurance that any fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investment funds are not guaranteed, their values change frequently, and 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. You can always access the lesser of unpaid capital (initial value of your investment less any income payments made) or your net asset value. Fees may apply.
Certain statements in this document are 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 Investments believe to be reasonable assumptions, Purpose Investments 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.