Annuities are powerful financial planning tools that provide guaranteed monthly income to you and your spouse for as long as you live, or for a set period of time that you specify, in exchange for a single lump sum payment up front.
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.
Get in touch with us
Looking for the right annuity? We can help clarify the tax advantages for the various annuity income options available to you, and also show you how they’ll affect the amount of future income you’ll receive. Talk to us today!Find an advisor
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