Pros & Cons of Life Annuities

The Pros of Annuities

• Simple

A life annuity ensures you do not have to worry about stock market failures.

• Life Income

Annuity payments are for life.

• Tax Advantages

You receive a tax advantage when you use non-registered funds.

Personal Pension Plan

• Annuities can create a pension for those without pension plans.

The Cons of Annuities

• Age Disparity

Lower payments for joint annuities.

• Longevity

Longevity could affect the amount of payment.

• Multiple Companies

Need to split capital to obtain 100% income guarantee.

• Commmitment

You cannot change the terms of annuity.