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What is a payout annuity?

Simply put, a payout annuity is an easy way to convert some of your savings into regular income payments. A life annuity, a type of payout annuity, can help provide a steady source of income throughout your retirement. 

How does a life annuity work?

You buy a life annuity from an insurance company, which calculates your payments based on:

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

Then, you can enjoy the financial security that comes with knowing you’ll get guaranteed income payments for life.

  • Find out how much income you can get from a life annuity with our annuity calculator.

What other types of payout annuities can you buy?

Is a life annuity right for you? 

A life annuity is helpful if you:

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

Need help getting started?

A Sun Life Financial advisor can help you build a savings plan that meets your goals and needs. Most advisors now offer to meet Clients virtually by video chat. Find an advisor today.

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