Retirement Annuities Advice from Jeff Ponting
When you retire or reach the age of 71, all the savings you've built up in your RRSP will need to be converted into a way to fund your retirement. You can cash it in, convert it into a RRIF (Registered Retirement Income Fund), or buy an annuity.
What is an annuity?
An annuity is an insurance policy that provides you with a regular income throughout your retirement. You use the proceeds from your RRSP to buy an annuity that gives you a fixed income for life, an income for your spouse if they live beyond you, or an income for a particular period of time. With an annuity, you have the reassurance of a regular income that's there every month.
Key types of annuities
- Single-life annuity: provides a fixed amount or index linked income for your lifetime
- Joint and survivor annuity: provides a fixed income for you both, and the same income or a percentage to your surviving partner or spouse, depending on how you set up the annuity
- Term certain annuity: provides an income over a set period of time only.
How Jeff can help
Choosing the right annuity for you is a big decision, and it can be hard to work out the best type for your circumstances on your own. If you are approaching decision-time on your RRSP, please call us. We can guide you through the maze of annuity choices out there and help you make the best decision for you, your family and your future lifestyle enjoyment.
Call us for expert help on how to buy an annuity
