Payout annuities are insurance products that pay you a guaranteed regular income for a fixed term or the rest of your life.
Payout annuity income payments consist of a blend of interest and principal based on:
- Your age and gender (and in certain cases your spouse’s age)
- Current interest rates
- Length of time the payments are guaranteed
- Amount of money used to purchase the annuity
- Type of annuity
Normally, payments are fixed, but if you are concerned about inflation, you may choose to have annuity payments indexed, that is increased by a fixed percentage each year to a maximum of 4% for registered policies and 6% for non-registered policies.
Payout annuities have specific benefits and can be created using a number of features and options to meet your income needs.
Our products can be purchased with registered (e.g., RRSP, RRIF, LIF, etc.) or non-registered funds as a way to top up retirement income once you’ve reached your annual RRSP contribution limits.