$7,000 before tax
$5,140.22 after tax
How annuities work
Find out how an annuity can give you a guaranteed income for life.Learn more about annuities
The best strategy for you
Other helpful retirement planning resources to consider:Simply put: What are payout annuities? (Video)
An annuity is just one piece of your complete retirement income picture. For help fitting the pieces together, review your results with an advisorSend your results
Age when you plan to buy an annuity
Information: Your age makes a difference. The younger you are when you buy an annuity, the longer you’ll receive income from it. That means your annual annuity income will be lower if you buy an annuity when you’re younger.
Customize your annuity
A guaranteed period protects your family if you die earlier than expected. Your life annuity can continue to pay your beneficiary for the period you choose – up to 40 years. If you die after the guaranteed period, your annuity payments stop.
You can index your annuity payments to help protect your income from the effects of inflation.
By including your spouse in a joint life annuity, your annuity income will continue to your spouse after your death, until his or her death. Please note that adding a guaranteed period and other features typically reduces your income.
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Your estimated annual annuity income will be: $7,000 before tax and $5,140.22 after tax.
Did you know your advisor can help you customize your annuity to meet your needs by adjusting the guaranteed period, income indexing or including your spouse in a joint plan.
To see what your guaranteed annuity income could look like with the features you need, review your results with an advisor
Planned annuity purchase age: 50
Deposit amount: $100,000
From investments that are: Registered
Your expected tax rate in retirement will be: 35.00%
Annual before-tax income: $3,891.06
Annual after-tax income: $4,420.69
At 6% interest, the RRIF's after-tax income will be able to match the annuity up to age 100 — but only the annuity income is guaranteed for life.
At 6% interest, the RRIF will be able to match the annuity to past age 100 — but only the annuity income is guaranteed for life.
The average life expectancy for someone the age and gender shown is 89-92 years.
In this example, the RRIF income exceeds the annuity income for a period of time because of the mandatory minimum withdrawals.
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Not fully aware of your different retirement income options? Don’t worry: Let us help you find out more.
Life Annuity: An insurance contract that guarantees you’ll receive income payments for life, however long you live. Once you’ve purchased your annuity, you never have to worry about how that money is invested or how long your income will last.
GIC: One of the safest and simplest investments you can make. In essence, you are depositing money and receiving a guaranteed amount of interest, for a guaranteed period of time.
RRIF: An excellent choice for people who want to take money out of their RRSPs as regular income. You control your investments and income (subject to RRIF minimum withdrawals), while maximizing tax deferral. And RRIF assets can be passed directly to your spouse on your death, without being taxed.