Annuities

Why are they important?

The monthly income you receive is safe and secure from the risks of both the market conditions and interest rate fluctuations. And, if you buy your annuity with non-registered savings, you could also benefit from tax savings.

Things to keep in mind                      

If you’re considering an annuity as part of your overall financial plan to provide monthly retirement income, consider these advantages:

• Guaranteed income Payments will continue for life, or for a set period of time that you specify.
• Higher income rate  Annuities can provide a higher rate of income than other guaranteed income products.
• Optional spousal protection  If you have a spouse, income can be based on two lives so that both of you have guaranteed income.
• Payment guarantees  Ensures that monthly income payments will be paid to your beneficiaries in the event you pass away.
• Tax advantages If you use a non-registered fund for your single lump sum payment up front, partial tax-deferral can help you pay less tax.
• Simplicity  Your single lump sum payment up front can provide financial security and reduce your ongoing investment decisions.
• Confidence You’ll enjoy peace of mind knowing your monthly income won’t be subject to volatile market conditions and interest rate fluctuations.