Why annuities are cheap
June 01, 2012
By Brent Simmons, Senior Vice-President & Head, Defined Benefit Solutions
If I had a loonie for every time that I heard someone say that annuities are expensive, I’d be writing this article while sipping Château Margaux on my own private island.
With interest rates stuck at historic lows, we’re at the point where the “annuities are expensive” mantra is conventional wisdom and rarely questioned. The purpose of this article is to explore this notion and quantify what “expensive” really means.
