Late in September, Sun Life introduced MyRetirementIncome, a decumulation solution aimed at helping retirees move from accumulation to regular income. The product joins a small but growing group of Canadian offerings, including Guardian Capital’s Glidepath and the Purpose Longevity Fund, and resembles asset-allocation exchange-traded products such as Vanguard’s VRIF (Vanguard Retirement Income ETF Portfolio). Sun Life positions MyRetirementIncome as addressing a persistent gap in retirement solutions in Canada.
Sun Life highlights growing demand: an estimated 5 million Canadians will turn 65 this decade, increasing the need for practical retirement-income options. MyRetirementIncome is marketed to provide regular, predictable payments; allow full access to account balances without penalties; and combine a meaningful fixed-income allocation with exposure to assets intended to generate long-term growth.
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Well-diversified segregated fund structure
MyRetirementIncome uses Sun Life’s existing Granite Moderate Retirement Fund as its investment foundation. The multimanager structure taps a roster of global specialists across roughly 16 asset classes, including equities, fixed income, emerging market debt, liquid real assets, direct infrastructure, liquid alternatives and direct real estate. Managers involved include BlackRock, Lazard, Phillips, Hager & North, RBC Global Asset Management and Sun Life Capital Management.
Rona Birenbaum, founder of Caring for Clients in Toronto, describes Sun Life’s vehicle as a well-diversified portfolio held inside a group segregated fund structure—similar in some respects to a mutual fund. Crucially, MyRetirementIncome is not an annuity or an insurance-guaranteed product, so returns and payment levels are not guaranteed. That means retirees should expect variability linked to market performance, even though Sun Life aims for stable annual payments.
For many retirees, the product can simplify the decumulation process: Sun Life handles rebalancing and recalculates target withdrawals annually based on the account balance. This appeals to individuals who prefer to delegate major decisions about allocation and withdrawal levels to a professional manager.
Clients select a maturity age—options include 85, 90, 95 and 100, or combinations of those ages—and can begin withdrawals as early as age 50. Each year Sun Life recalculates the withdrawal amount based on the current balance, payment frequency, remaining years to maturity, an estimated annual return (Sun Life cites an expected return of 5.5% but uses a conservative 4.5% for calculations), and regulatory minimums and maximums.
Emphasis on simplicity and flexibility
Eric Monteiro, Sun Life’s senior vice-president of group retirement services, says the product will initially be used mainly within RRIFs and may be adopted either as a portion of a broader retirement portfolio or, for some, as their primary income solution. Advisors, consultants and plan sponsors who have reviewed the product gave positive initial feedback, especially on its flexibility and predictable withdrawal structure.
The all-in management expense ratio is 2.09% for assets up to $300,000 and drops to 1.58% for larger balances. Sun Life positions this fee as competitive with other actively managed solutions.
Birenbaum notes the clear advantages: simplicity, accessibility and annual recalculation of sustainable withdrawal levels. Beneficiary protection is built in—any remaining balance passes to a named beneficiary or the estate rather than being lost at death. The product accommodates most account types (RRIFs, LIFs, TFSAs and taxable accounts), though it is not available inside RRSPs.
On the downside, she warns that the offering is currently limited to existing Sun Life group retirement plan members and that a single fund cannot meet every retiree’s varying risk tolerances and time horizons. Many clients also underestimate life expectancy, introducing longevity risk. For some investors, a bespoke financial plan and active advisory relationship will yield better outcomes than a one-size-fits-most solution. Low-cost balanced funds or ETFs held in discount brokerages can be cheaper alternatives for DIY investors willing to do the annual calculations themselves.
Is it really a first in Canada?
Noted finance professor Moshe Milevsky questions the “first of its kind” claim, noting products such as Guardian’s GuardPath Managed Decumulation fund predate Sun Life’s launch. Milevsky also highlights a practical challenge: asking retirees to choose a hard maturity date—say age 85 versus 100—forces a difficult prediction about longevity. While the maturity date is adjustable, it remains an awkward decision for many.
Longevity pooling remains the core challenge in decumulation: without pooling longevity risk through annuities or tontine-like arrangements, drawdown strategies are inherently less efficient. Retired actuary Malcolm Hamilton describes the product as straightforward and useful for those comfortable selecting a target maturity year. He recommends prospective clients ask about the anticipated size and frequency of future withdrawal adjustments so they can judge whether the income path will remain tolerable as markets fluctuate.
Tax and other considerations
Wealth advisor Matthew Ardrey calls MyRetirementIncome a helpful option for Canadians who struggle with the behavioural and planning aspects of decumulation. He describes the product as a dynamic drawdown schedule that adjusts annually to help money last to the chosen retirement age, producing an annuity-like experience without the lock-in or guarantee of a traditional annuity.
Ardrey’s back-of-the-envelope example shows that a 65-year-old Ontario resident with $500,000 and a 5% return planning to age 90 could see relatively stable payments through their late 80s. That same outcome, he notes, can often be replicated by selecting maximum allowable LIF payments for certain account types, meaning the Sun Life math is sometimes duplicable by a determined planner.
Overall, MyRetirementIncome offers a practical, simple way for many retirees—especially those without financial advisors—to generate a steady income stream while retaining control of their assets and flexibility to change plans. For those with comprehensive advisory relationships or complex portfolios, tailored planning may still deliver superior results, often at lower ongoing cost. Any investor considering this product should weigh fees, the absence of guarantees, longevity risk and how it fits with other sources of retirement income and tax planning.
Read more Retired Money columns:
- Tontines in Canada: Moving from theory to practice as a solution to our retirement crisis
- How much money do you need to retire in Canada? Is it really $1.7 million?
- Infinite banking in Canada: Should you borrow from your life insurance policy?
- Should retirees in their early 70s partly annuitize?
- RRSP to RRIF, and LIRA to LIF: How it all gets done