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, made 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 and other diversified assets. 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 you pass away earlier, most 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 gives you the freedom to:

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

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