What are income annuities?

Income annuities are purchased with a lump sum and provide steady and predictable income over a specified period of time. This means Canada Life will pay you a regular income for a fixed period or the rest of your life, depending on the type of annuity you choose. This guaranteed income can help cover your basic living expenses no matter how long you live.

Who is it for?

Income annuities can be the right income choice for those people who are near or in retirement and concerned about out-living their money. Such people may also be concerned that poor financial markets could reduce their retirement savings and want to secure their income for life without constantly worrying about market ups and downs.

Others may be seeking income to bridge the gap until their Canada Pension Plan (CPP), Quebec Pension Plan (QPP) and/or old age security (OAS) payments kick in. Income annuities are also ideal for those looking receive a stable level of regular income over time – similar to receiving a salary in retirement.

How does it work?

Annuities offer regular income payments for life or a fixed period (you choose), regardless of market performance. The guaranteed income can also help fill a gap if you don’t have an employment pension. The income from your annuity isn’t affected by financial market changes, which can provide added security.

Annuities can supplement other sources of income and complement other financial products in retirement. There are flexible options available to fit your situation, including those that allow you to access your cash when you need it (when the cashable feature is available). Please speak to your advisor about these options.

Income annuities and the HelloLife Retirement Program

HelloLife

Income annuities and the HelloLife Retirement Program

Lifetime income annuities provide a stream of guaranteed income for as long as you live, giving you certainty and stability in retirement. An income annuity can be paired with another product that may be suitable for your retirement years as part of the HelloLife retirement income program. If you would you like to learn more about annuities or the HelloLife program, please visit HelloLiferetirement.com or talk to your advisor.

Canada Life offers different types of annuities:

  •  An annuity for just one person (single-life) could provide a salary in retirement for one person.
  • An annuity for a couple (joint-life) could provide a retirement salary for two people. If one person on the policy passes away, the remaining spouse continues to receive some income.
  • An annuity for a specific time period (term) provides a set number of income payments for a specific time period, chosen by you.