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Annuities
“Ensure a reliable income for your retirement, even in times of economic uncertainty, with annuities. These secure financial products guarantee you a consistent income for life or a set period, regardless of market performance.
Why Choose Annuities?
Once you purchase an annuity, you can simply set it aside and enjoy peace of mind. There’s no need to worry about investment management or the risk of outliving your retirement funds.
Annuity Options Available:
Life Annuity: A life annuity offers lifelong, predictable income, so you can enjoy retirement without the stress of managing investments. Payments continue for as long as you live, and if you pass away before the end of the guaranteed period, your beneficiaries will receive the remaining payments.
Example: Peter, aged 65, purchases a life annuity for $115,000. He receives $560 monthly for life. At age 82, Peter will have received the full amount of his annuity and will continue to receive $560 per month for as long as he lives.
Joint and Survivor Annuity: Ideal for couples, this annuity provides guaranteed lifetime income for both partners. If one partner passes away, the surviving partner will continue receiving either the full annuity or a percentage, depending on the chosen plan.
Example: John buys a joint life annuity at age 65 for $150,000, receiving $650 monthly. When John passes away at 85, his partner Jack continues receiving $390 per month for the rest of his life. Together, they receive $179,400 in total throughout their retirement.
Term Certain Annuity: This annuity offers guaranteed income for a specific period, allowing you to distribute your retirement savings without investment worries. Payments are calculated based on factors such as your initial investment, interest rate, and annuity duration.
If your annuity is purchased from a RRIF or RRSP, it must last until you reach at least age 90. If you pass away before the term ends, your beneficiaries will continue to receive payments. Payments stop once the term concludes.
Flexible Payment Options:
What is the difference between a life annuity and a joint and survivor annuity?
A life annuity provides income for your lifetime, while a joint and survivor annuity ensures lifetime income for you and your partner, with payments continuing for your spouse after your passing.
Can I change the payment frequency of my annuity?
Yes, you can choose how often you receive payments—monthly, quarterly, semi-annually, or annually—based on what works best for you.
What happens if I pass away before my annuity term ends?
If you pass away before the term ends, your beneficiaries will continue to receive payments until the end of the term. For life annuities, payments stop after your death, unless a guaranteed period has been chosen.