Are annuities paying today less or more income than the payments yesterday? Possibly, because the companies change the rates in line with their current investments.
Annuity payments today may be different from yesterday or tomorrow. And those payments are usually a little more or a little less. And the reason payments may change is due to fluctuations in the various financial instruments used in pricing your payments.
How do I calculate the price of today’s annuity?
You can easily figure out today’s payment by using an annuity calculator. To calculate your annuity payment, companies look at the return they can achieve to safely guarantee that you will receive payments for your lifetime. The financial instruments include short and long term bonds, interest rates and longevity along with your sex and age. What is important for you to know is that can ” lock in ” the rate for up to 45 days for registered funds on the day you decide to take the annuity.
And while your rate with a particular annuity company may change today, some or all of the competing companies may keep the same rate. And that is why company X is on top of the rates table one day and tomorrow, company Y is paying today’s best annuity rates for you. To cope with these constant changes you need an annuity broker to look after your interests.
So that is why you should use an annuity calculator to find out today’s rate. An annuity quote is personal as the rate is calculated on your date of birth and your capital not someone’s else. Our Annuity Rate Tables can give you an idea of what you will receive.
Example of an Annuity Paying Today
- Male aged 65 with $100,000 the annuity paying today is $532.12
- Female aged 65 with $100,000 the annuity paying today is $476.61
*Source: Sun Life Financial