The feature of the Lifetime Cash Flow product provides continuous payments for the remainder of the product holder’s life while protecting against market volatility.
The bank said that the new product is an addition to the suite of deposit products that comprise the BMO LifeStage Retirement Income Portfolios.
According to the BMO Financial, with as little as $5,000 a ‘personal pension’ for themselves can be initiated.
Product holders will receive a guaranteed cash payments equal to 6% per year after ten years based on their initial deposit that will be payable monthly. The capital returns continues for the next 15 years.
BMO Financial Group VP, head of retirement market group Caroline Dabu said that BMO Lifetime Cash Flow allows Canadians to include a safety net as part of their plan, ensuring a secure and stable cash flow for the rest of their lives.
