Factors That Determine Annuity Income

By Ivon T Hughes
factors
Figure 1. Annuity Factors

6 Factors That Detemine Annuity Income

These 6 factors affect the amount of income generated by an annuity.

  1. Interest Rate
  2. The interest rates at the date of deposit or the rates established previously with a rate guarantee.

  3. Mortality
  4. The life expectancy of the annuitant(s).

  5. Annuity Type and Options
  6. The choice of annuity type, (e.g. Single Life) and options (e.g. Indexing, Return of Premium, etc.) will affect the amount of income.

  7. Guarantee Period
  8. The longer the Guarantee Period, the lower the income amount.

  9. Premium Amount
  10. The larger the premium the greater the income payment.

  11. Income Deferral
  12. The period of time between the Purchase Date and the Income Start Date.

Ivon T Hughes

About the Author

Ivon T. Hughes

Ivon T Hughes is a leading expert in life annuities in Canada. His website LifeAnnuities.com is a recognized authority on annuities. He's also an established insurance and investment broker, through The Hughes Trustco Group since 1972. Recently, he's been redefining how annuities are sold in Canada.

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