How do Longevity Benefits work?

July 2, 2025

Your guide to preparing for a longer, more secure life—with confidence.

First, What’s a Longevity Benefit?

A longevity benefit is a new kind of financial tool designed to support you later in life—when you might need it most. Unlike traditional retirement plans that pay out during your early retirement years, longevity benefits offer cash payouts starting at age 80 and continuing every 5 years (85, 90, 95). Think of it as a second layer of retirement protection, seeking to give you peace of mind for the years that come after retirement.

So, How Does It Work?

Here’s what happens once your employer offers Savvly:

1. Ask Your HR Team About Enrollment

If your company offers the Savvly Longevity Benefit, you’re eligible to sign up. Employers contribute a fixed amount on your behalf. Not sure? Just ask HR: “Do we offer the Savvly Longevity Benefit?”

Open Your Account & Set Contributions

Once enrolled, you’ll create your Savvly account and your employer will begin their monthly contributions to your account.

  • No minimum income requirements
  • No health checks or restrictions
  • Easy to start and flexible to manage

Your Savings Are Invested in a Fund

Savvly combines everyone's contributions in a regulated, market-based fund, tracking the S&P 500. It’s built to potentially grow over time. This fund structure gives you access to higher potential returns than you’d likely earn on your own, especially in later years.

You’re Rewarded for Living Longer

Here’s where the benefit kicks in:

✅ Receive cash payouts at ages 80, 85, 90, and 95
✅ If something happens earlier, most or all of your money returns to your family or estate
✅ Payouts can be 3–4x more than individual investing

What Makes This Different?

  • It’s not an insurance product or annuity
  • It’s not a pension that disappears when you leave your job
  • It’s a complement to your 401(k), built for the later stages of life

Why It Matters

Most retirement plans help you for the first 10–15 years of retirement. But what if you live into your 90s? Savvly fills that gap, so you’re not left wondering if your savings will last. It can give you the freedom to:

  • Retire earlier
  • Spend more freely
  • Feel confident about your long-term financial future

Return

Assumptions and Risk Disclosure

The information on this page is provided for educational purposes only and is not intended as investment, legal, or tax advice. It is designed solely to illustrate how longevity-based investment benefits may work under certain assumptions. Actual results will vary.

All illustrations, examples, and case studies are hypothetical and are intended to demonstrate potential scenarios—not to predict or guarantee actual outcomes. They do not represent the performance of any individual investor, portfolio, or account.

Key Assumptions Used in the Illustrations
-
Life expectancy and mortality projections are based on the most recent Social Security Administration (SSA) tables available at the time of simulation.
- In the event of death or early withdrawal, hypothetical scenarios assume that beneficiaries may receive 75% of the lesser of the initial investment or current market value, plus 1% for each full year the account was active.
- Case studies assume standardized market growth of 8% annually and do not incorporate unexpected market volatility, inflation, changes in interest rates, or changes in an investor’s personal circumstances.
- Simulations may assume a 3% annual early withdrawal rate prior to payout or death.
- All figures shown are net of fees.

Risks to Consider
-
Market Risk: Investment values will fluctuate and may be worth more or less than the amount invested. There are no guaranteed returns.
- Sequence of Returns Risk: The order and timing of market gains or losses—particularly near the payout phase—can materially affect results.
- Longevity Risk: Living longer than projected may reduce the pooled benefit per participant; shorter-than-expected lifespans may affect the amount received.
- Redemption Impact: Early or voluntary withdrawals by other participants can impact overall fund performance and distribution outcomes.

No forecast, projection, or hypothetical return should be relied upon as a promise or representation of future performance. Investors should carefully evaluate their own circumstances and consult a qualified financial professional before making any investment decision.