Here are my comments to a March 19, 2018 article in the Toronto Star “ Annuities may offer security in uncertain times” by Lee Schafer.
Nice article Lee and I would like to make some comments.
Non-registered life annuity contracts can be guaranteed for a lot longer than 20 years. I have a client with a major life annuity company, where payments are guaranteed up to her age 115 and her lifetime!
And registered plans can have payments guaranteed for life and up to age 90 of the younger partner, which is the most common practice.
But that comment from Mortenson ignores the real reason which is drummed into all financial salesmen and women.” Don’t sell annuities as you will then lose the cash to move around to make more commissions and trailer fees”.
And that is the reason people are not inclined to buy annuities; they are actively directed into products that pay better commissions and, most importantly, trailer fees each year.
Government pensions are annuities, the same as company pensions. Personal annuities are a pension.