The following are some factors that actuaries use to determine how your life annuity income is calculated.
The Annuity Formula is based on:
The gender of the annuitant.
2. Date of Birth
The date of birth of the annuitant
3. Mortality Tables
The life expectancy of the annuitant(s).
4. Short and Long Bond and Interest Rates
5. Annuity Type
Which type of annuity is being purchased? Single or a joint life annuity.
6. Fund Type
The source of funds that are to be used to buy the annuity. This could be Non-Registered or Registered ( RRSP, RRIF, RPP, Locked-in RRSP, DPSP)
7. Premium Amount
The amount of the single premium.
8. Guarantee Period
The guarantee period allows you to enter the number of years and months the annuity is guaranteed.
9. Purchase Date
When the insurance company can expect to receive the premium for the annuity.
10. Income Start Date
The date that the first annuity income payment is to be made.
11. Payment Frequency
The number of times per year the annuity is to be paid. Typically monthly or annual payments are made.