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-linked 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 investors who exit early, or their estate in the event of death, 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. No forecast, projection, or hypothetical return should be relied upon as a promise or representation of future performance.

Past performance is not indicative of future results. The 8% annual market growth rate used in illustrations is a standardized assumption for modeling purposes only and does not represent the historical or expected performance of any specific investment. Note that early or voluntary withdrawals by other participants can affect fund performance and the size of distributions, and that a higher-than-expected number of participants reaching payout milestones may reduce the per-participant benefit received.Savvly's Longevity Benefit is not a bank product, not FDIC insured, not insured by any federal government agency, not a guaranteed or insured investment, and not insurance. Investment values may decline.

Savvly's Longevity Benefit may not be suitable for all investors. Eligibility to invest is subject to qualification requirements and not all investors will be eligible. Investors should carefully consider their investment objectives, risk tolerance, time horizon, and financial situation before investing. See savvly.com/disclosures for current eligibility criteria, fees, risks, withdrawal terms, and fund assumptions.

This content is published by Savvly, Inc. Savvly has a financial interest in the products described and this content should not be interpreted as independent financial research or analysis. Investors should carefully evaluate their own circumstances and consult a qualified financial professional before making any investment decision.