Annuity Retirement Plan

Create A Retirement Plan Using Annuities

By Ivon T Hughes
annuity retirement plan
Figure 1. Annuity Retirement Plan

Annuity Retirement Plan

When you retire, you want to have saved enough money to last your entire lifetime. When you do decide to plan your retirement you can do so by diversifying your retirement portfolio with an annuity.

Keep in mind when creating a retirement plan to take into consideration that many Canadians live beyond their life expectancy. And the most common challenges facing retirees is outliving their money.

So the question is how you can position your retirement portfolio to have a steady stream of income that will last the rest of your life.

Rob Carrick - Personal Finance Columnist

Rob Carrick of the Globe and Mail tweeted the following comments with a link to his article "Annuities: A neglected way to buy peace of mind." A good read which I discuss below.

Annuities: A neglected way to buy peace of mind

This article addresses the problem that there are not many ways to diversify a true retirement portfolio.

By true, I mean someone who is actually retired and living on various streams of income. You probably have 1 or 2 government pensions depending on your province of residence, along with possibly a pension from work.

But if you've saved your money in RRSPs and GICs and the like, you need to work out how to make these registered and non registered amounts supply you and your spouse with a lifetime income.

And included in these calculations you will read about, will be annuities.

A life annuity is the only financial product where you can be guaranteed by a large life insurance company to receive an income for the rest of your life. No other financial product can offer this guarantee.

Are you waiting to take a retirement income?

In whatever form, is just plain foolish. If you decide to buy a house, you take your money out of the bank and now you don't have the money; you have the house. The same thinking applies to retirement income; you convert your cash to income.

You will also read that you should defer this income, registered or not, for as long as possible. I've seen articles suggesting you wait till 75 & 80. How do you know you'll be alive to enjoy the money you saved? These suggestions to wait until after your life expectancy are questionable at best. Another question; are you sure you and your spouse will still be in good health?

Income from GICs and other investments are not based on your age; only annuities will pay you more with less tax.

Is an annuity for retirement a good option for you? Find out if an annuity may be a good retirement income option for you. Complete our annuity calculator to get your personalized annuity quote emailed to you.

Ivon T Hughes
Phil Barker

About the Author

Phil Barker

Phil Barker is a leading expert on life annuities in Canada. has different financial products and has been a recognized authority since 1972.

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