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In retirement planning, a longevity benefit is a benefit designed to pay out in the later decades of life, at ages most savings plans aren't built to reach. The Savvly Longevity Benefit is an employee benefit built on a Longevity-Linked Security. Contributions are invested in an SEC-registered fund (Savvly 80+ Fund) that holds an S&P 500 index ETF, and investors who reach ages 80, 85, 90 and 95 receive milestone payouts. It is not insurance and not an annuity.
The phrase is used in three different ways, so it helps to be precise:
Most retirement planning targets a number: a balance large enough to retire on. Few plans target a specific age such as 85, 90 or 95. Yet the longer someone lives, the longer their savings have to last, and the late decades are where plans are most likely to run short. This is called longevity risk. A late-life benefit adds a layer aimed at exactly those years, alongside a 401(k), IRA and Social Security.
For the full mechanics, see How It Works.
An annuity is a contract with an insurance company. You pay the insurer, and it promises payments, often for life, backed by its own balance sheet. That promise is the main strength of an annuity, and for many people annuities remain a sensible choice.
The Savvly Longevity Benefit works differently. There is no insurer and no contractual promise of income. Instead, investors share a fund invested in the S&P 500, and the pooling of longevity is what supports later payouts. In short: an annuity trades market upside for a guarantee; a longevity benefit keeps market participation and pools longevity among investors, without a guarantee. The two can be used together.
You can exit early under the Return of Deposit Rule: 75% of the lesser of your investment or its current value, plus 1% per full year held, up to 100%.
Employers offer the Savvly Longevity Benefit as an employee benefit, often through their benefit broker. Financial advisors can also use it with clients planning for retirements that may last 30 years or more. The account stays with the employee if they change jobs.
No. An annuity is an insurance contract. The Savvly Longevity Benefit is an investment in an SEC-registered fund that pools longevity among its investors.
No. Only the payout ages are fixed. Payout amounts depend on market performance, fees and investor activity in the fund.
No. There is no health screening or medical underwriting.
Payouts may be subject to taxation depending on whether the Savvly Longevity Benefit is held in a qualified or non-qualified account. Savvly does not provide tax advice; see the prospectus and speak with a tax professional.
Related: Is There an Alternative to an Annuity for Late-Life Income? · Can You Invest in a Tontine Today? · How It Works
Disclosures
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.
The Savvly Longevity Benefit is not a bank product, not FDIC insured, not insured by any federal government agency, and not insurance; payout amounts are not guaranteed. Investment values may decline.
The Savvly 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.
