What are income annuities?
Income annuities allow you to turn a portion of your savings into your retirement paycheque, allowing you to receive regular income either for a fixed period (i.e., a set number of years) or for the rest of your life.
How does it work?
- Determine when you want to retire and how much income you will need on a regular basis
- Make a lump-sum payment
- Make the following choices:
- Would you like to receive income payments for life or for a set period of time?
- Would you like to receive income for one person or for a couple?
- Would you like to receive payments on a monthly, quarterly, semi-annual or annual basis?
- If needed, customize your income annuities with the different options available.
- Start receiving your regular retirement paycheque!
What types of annuities can I get?
There are three types of annuities available for you:
Lifetime income for you from a single-life annuity
- This is similar to a pension plan for one person
- You will receive payments for life
Lifetime income for a couple from a joint annuity
- This is similar to a pension plan for a couple
- You will receive payments for as long as you or your partner lives
- When one partner dies, the survivor will continue to receive payments
Regular income for a specific period from term annuity
- You receive a regular income for a certain number of years that you have determined