The GLWB bonus rate, which will apply on December 31, 2020, will be the rate calculated using the following formula: the 10-year Government of Canada benchmark bond yield (CANSIM Identifier V39055) as at the last business day of November of the current calendar year, plus 1.5%. This rate is subject to a minimum of 2.5% and a maximum of 8%.
The benchmark rate as at November 30 was 0.67%. With the 1.5% added to this rate, the rate will be 2.17%. The GLWB Bonus Rate for clients who did not make any withdrawals in 2020 will be 2.50%, which is the minimum rate specified in the contract.
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