What Is An Annuity For Retirement?

You’ve dreamed of this moment for years. After decades of hard work, you’re finally ready to settle down and retire.

Understandably, you’ll want your retirement to be comfortable and stress-free. One of the easiest ways you can ensure a great retirement is by securing an annuity.

But just what is an annuity and how do you go about setting one up?

Read on to learn the ins-and-outs of annuities and see how you can secure your retirement.

What is an Annuity?

At its core, an annuity is reliant on an agreement between you and an insurance company. This agreement states that in exchange for your capital, you’ll receive a set income for life and a certain number of years if you wish.

This means that you will receive guaranteed income after buying an annuity policy. There are two factors to consider.

First and foremost is the age of the person purchasing the annuity. Generally speaking, the older you are, the higher your income will be.

It’s also worth noting that registered annuities are taxable and non registered annuities carry a low tax rate which is sometimes zero.

Types of Annuities

Now that we’ve established an understanding of what an annuity is, let’s talk about options.

Your annuity is all about investing your registered or non registered funds.

They are the only two types of annuities.

A registered annuity is the end plan for your RRSP savings and other registered money from a LIF or a LIRA for example. Payments are taxable.

In contrast, a non registered annuity carries far less tax.

Who Should Consider an Annuity?

We’ve answered what is an annuity, but now let’s focus on who an annuity is for.

In short, anyone concerned about their financial future should look into purchasing an annuity. If you’re looking to secure a safe and stable retirement, an annuity is a smart choice.

When considering whether or not an annuity is right for you, ask yourself a few questions:

  • Why do you want guaranteed income in your retirement?
  • Do you have any¬† family you’d like to help after you pass away?
  • How much money can you invest?
  • Are you fed up with stock market volatility?

If you think an annuity is right for you, email me today for your free quote! All it takes to begin your smarter, more stable future is a few minutes of your time.