Does your retirement plan provide guaranteed income for life?
Infographic by RBC Insurance
This infographic by RBC Insurance explains that payout annuities provide you with guaranteed income for life. Nearly 70% of Canadians don't have a workplace pension plan. Buying life annuities from an insurance company serves to reduce market risk, interest risk and longevity risk. Esssentially a life annuity is your personal pension plan. You give a lump sum ( a premium) to an insurance company to purchase an annuity policy and the insurance company will provide you with a monthly income for life.
Monthly payout annuities provide you with a cheque each month to meet your bills.
Most people rely on this guaranteed income along with government pensions, to continue a regular income as if they were working. You cannot outlive the income and you don't have to worry about the stock market fluctuations or low GIC interest rates. The cheques are deposited into your account on the same day of the month for the rest of your life.
Try our annuity calculator and see what your monthly guaranteed retirement income could be.