Skip to customer sign in Skip to content Skip to footer

Retirement savings

Simply put: What are payout annuities? (Video)

Looking for a worry-free way to meet your retirement income needs? A payout annuity can convert your savings into regular income payments.

 

Video Transcription

Have you ever wondered if there is a worry-free way to meet your retirement income needs?

What is a payout annuity?

A payout annuity is a simple way to convert your savings into regular income payments. It can provide a great way to meet retirement income needs.

How does a payout annuity work?

You buy a payout annuity from an insurance company, which calculates your monthly payment based on:

  • the amount of savings you are converting,
  • long-term interest rates, and
  • the life expectancy of a person your age.

You can then sit back and enjoy the financial security that comes with knowing you will be receiving regular monthly payments.

What type of payout annuities can you buy?

Why would I want a payout annuity?

A payout annuity is helpful if:

  • you want guaranteed income to pay ongoing fixed expenses,
  • you don't want to make any more investment decisions or
  • you want to avoid the risk of outliving your money.

Find more tips and tools at sunlife.ca. Life's brighter under the sun.

Related articles