You can customize your annuity to meet your needs. You can set the guarantee period, index the income to help it keep pace with inflation or include your spouse in a joint plan.
To see what your guaranteed annuity income could look like with the features you need:
Now that you know what your guaranteed life annuity income could look like, use the tool below to compare it to other retirement income options.
An advisor can help you weigh your options and choose the strategy that will work best for you. There's no cost to talk to an advisor.
A guaranteed period protects your family if you die earlier than expected. Your life annuity can continue to pay your beneficiary for the period you choose – up to 40 years. If you die after the guaranteed period, your annuity payments stop.
You can index your annuity payments to help protect your income from the effects of inflation (indexing may have tax consequences for non-registered policies).
By including your spouse in a joint life annuity, your annuity income can go to your spouse after your death, until his or her death. Please note that adding guarantees and other features typically reduces your annual payments.
February 28, 2017
Your estimated annual annuity income will be: $7,000 before tax and $5,140.22 after tax.
You can customize your annuity to meet your needs. You can set the guarantee period, index the income to help it keep pace with inflation or include your spouse in a joint plan.
To see what your guaranteed annuity income could look like with the features you need, review your results with an advisor
Age when you plan to buy an annuity: 50
Premium amount: $100,000
From investments that are: Registered
Gender: Female
Your expected tax rate in retirement will be: 35.00%
Annual before-tax income: $3,891.06
Annual after-tax income: $4,420.69
At 6% interest, the RRIF's after-tax income will be able to match the annuity up to age 100 — but only the annuity income is guaranteed for life.
At 6% interest, the RRIF will be able to match the annuity to past age 100 — but only the annuity income is guaranteed for life.
The average life expectancy for someone the age and gender shown is 89-92 years.
In this example, the RRIF income exceeds the annuity income for a period of time because of the mandatory minimum withdrawals.
AGE | CUMULATIVE ANNUITY PRE-TAX INCOME | ANNUITY PRE-TAX INCOME | ANNUITY AFTER-TAX INCOME | CUMULATIVE RRIF PRE-TAX INCOME | RRIF PRE-TAX INCOME | RRIF AFTER-TAX INCOME |
---|---|---|---|---|---|---|
55 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Don't know much about your different retirement income options? Don’t worry: Let us help you find out more.
Life annuity: An insurance contract that guarantees you’ll receive income payments for life, however long you live. Once you’ve bought your annuity, you never have to worry about how that money is invested or how long your income will last.
GIC: One of the safest and simplest investments you can make. Basically, you deposit money and, in addition to your principal, you receive a guaranteed amount of interest for a guaranteed period of time.
RRIF: An excellent choice for people who want to take money out of their registered savings on a regular basis for the purposes of retirement income. You control your investments and income (subject to RRIF minimum withdrawals), while deferring taxes as much as possible. And RRIF assets can be passed directly to your spouse on your death, without being taxed.