Canadian Annuity Rates

Got Annuity Related Questions?

I’ve got answers!

Contact Me Today – I’ll Get Right Back To You

    I’ll answer all of your questions and even if you don’t place an order with me, we’ll part as friends with absolutely no obligation on your part and you can feel free to contact me again any time you’d like. 🙂

     

    Cheers,

    John Beaton

    1-800-667-8818

    (604) 535-2404

    John Beaton

    Canadian Annuity Rates

    Use of this website will increase your understanding of Canadian Annuities as they relate to guaranteed lifetime income in your retirement years. Canadian life pay annuities are available only from Canadian life insurance companies and like the variation in interest bearing term deposits at banks, annuities vary in payout value from one insurance company to the other.

    To obtain an annuity one must pay a lump sum of money to a life insurance company which guarantees to pay a stream of income to that person. There are basically two types of annuities, those that pay for a person’s lifetime which are called life pay annuities and those that pay for a specific period of time which are called term certain annuities.

    The majority of queries that we receive pertain to life pay annuities, apparently because this kind of annuity pays for a person’s lifetime and doesn’t it make sense as our life expectancy increases, that a person would want to arrange for some of their income stream to be guaranteed for as long as they live.

    Low interest rates have dogged us for the last decade along with the occasional stock market crashes. There is no indication that financial markets are expected to get better as we move into the next decade. Annuities protect against the problem of continuing low interest rates and unexpected stock market crashes.

    Canadian Annuity Rates Infomation

    At Beaton Annuity Services we are fully knowledgeable about the annuity products offered by all major Canadian life insurers. If you would like to find out whether or not an annuity might become part of your retirement plan, either phone us or provide brief information about yourself in the form above or, the detailed form on our Free Annuity Quote page and send it to us. We will respond with an e-mailed copy of current annuity market rates.

    annuity rates canada    or     canadian annuity rates in vancouver

    Your Retirement Savings & Canadian Annuity Rates

    Take charge of setting up your retirement now so that you don’t have to worry later about how much or where your income is coming from. If your family history is long lived then the choice of an annuity that removes any need for decisions in later life may be the right one for you. By the time you retire, hopefully you will have accumulated investment assets that will augment your retirement income. Some forms of income will be fully taxable such as Canadian government benefits like Old Age Security which starts at your age 65 and Canada Pension Plan benefits which could start as early as age 60. You may also have accumulated tax deferred income in an RRSP for which you have taken tax deductions from your past income during your working years. Some of you will be calculating the conversion of the value of your home into preferred retirement income.

    If you have an RRSP, you are obligated to make an election by the end of the year in which you become age 71 whether to turn that RRSP into a registered retirement income fund [RRIF] or into a registered single or joint life annuity. You may decide to retain part of your income in the form of a RRIF so you can access lump sums for emergencies. You can then put the remainder of your income into a life annuity so that predetermined, specific amounts of guaranteed income will be paid to you for the rest of your life. This guarantees to protect your re-occuring basic needs in retirement such as home expenses and food.

    While you have to decide by the end of the year in which you turn 71 years of age what you are going to do with your accumulated registered savings, you don’t have to take any actual payments into income until the beginning of the year in which you become age 72.

    Life annuities, insured life annuities, indexed life annuities, cash back annuities and term certain annuities all have their place in planning a structured retirement income. Insured life annuities and cash back annuities provide less income but protect your capital. Indexed annuities provide for guaranteed increasing annual income over a person’s lifetime. The bottom line is that guaranteed income benefits and contractual guarantees of annuities will reduce any of your anxieties over the risk of outliving your retirement savings and potentially ending not having enough money to meet daily needs.

    Other Savings & Canadian Annuity Rates

    You may also have accumulated non-registered savings which you are holding in term deposits, low interest or non-interest chequing-savings bank accounts. If your savings are earning interest income, you will pay tax on that income. There are opportunities for you to lower your taxable income by examining the benefits of annuities in comparison with other higher taxed forms of income. You may find that an important aspect of having non-registed savings in a non-registered life annuity as part of a retirement portfolio is the potential for lowering taxable income. The current legislation pertaining to Old Age Security benefits requires that the government “claw back” some of that benefit starting at an income level of about $70,000 per person, per year. For every dollar of total taxable income that exceeds the $70,000 threshold, Old Age Security income, reduces by $0.15. If you fall into this higher income bracket, this translates into approximately a 15% additional tax which cannot ever be re-claimed.

    Life Annuities & Canadian Annuity Rates

    Decide to purchase a life annuity, and you will not have to worry about this source of income for the rest of your life. A life annuity provides a no maintenance, unbreakable income stream that guarantees the annuity income you have purchased will be paid to you for the rest of your life. There is no investment risk and nothing to oversee. Once a life annuity is issued in your name, you can count on the payments not changing in amount or frequency for the rest of your life. Economic conditions or investment returns may change, but the payments from your annuity are guaranteed to remain the same for the rest of your life. Throughout the rest of your life you will enjoy the financial security of a guaranteed income you cannot outlive.

    Sorry, only Canadians with their own Social Insurance Number can purchase Canadian life annuities. If Canadian citizens are residing outside Canada, there are circumstances where registered retirement funds can be converted into Canadian annuities. Non-Canadian citizens cannot purchase Canadian annuities in any form.

    Latest Annuity Rates Canada News

    Annuities Explained: The Ultimate Guide to Retirement Income

    annuity plans for retirement

    When planning for retirement, ensuring a steady income stream is essential to maintaining your lifestyle and peace of mind. One financial tool that can provide this stability is an annuity. Annuities offer guaranteed payments over time, which can help supplement other sources of retirement income. Understanding how annuities work, the types available, and their potential benefits can be key to securing your retirement future.

    What Are Annuities?

    An annuity is a financial product sold by insurance companies that provides regular payments over time in exchange for an upfront investment, usually a lump sum. Annuities are often used as part of a retirement plan to ensure a stable income. These payments can begin immediately (immediate annuity) or at a future date (deferred annuity), depending on the type of annuity you choose.

    Types of Annuities for Retirement

    Several types of annuities cater to different needs in retirement. Below are a few common options:

    1. Life Annuities: A life annuity guarantees payments for the rest of your life. This is ideal for those worried about outliving their savings, as the payments continue as long as you are alive. It can be structured as a single life annuity, which pays only for your lifetime, or a joint life annuity, which continues payments to your spouse after your death.
    2. Term Certain Annuities: With a term certain annuity, payments are made for a specified number of years. This type of annuity is ideal if you need a guaranteed income for a specific time period, such as covering the gap between retirement and receiving government pensions like Old Age Security (OAS).
    3. Indexed Annuities: An indexed annuity increases the payout over time to keep up with inflation. While the initial payments may be lower, they will rise annually, making this option suitable for those looking to maintain purchasing power throughout retirement.
    4. Cash Back Annuities: These annuities guarantee that all of the capital used to purchase the annuity will be returned, either through income payments during your lifetime or as a lump-sum payment to your beneficiary if you pass away before the full amount is paid out. It’s a way to ensure that your investment won’t go to waste.

    Benefits of Annuities in Retirement

    Annuities are particularly attractive for retirees seeking a predictable income that isn’t affected by market fluctuations. Here are some key benefits:

    1. Guaranteed Income for Life: The primary appeal of life annuities is the promise of regular, guaranteed income for life. This removes the uncertainty of outliving your savings and provides a safety net for your basic living expenses.
    2. Protection Against Market Risks: Unlike investments that are tied to the stock market, annuities offer stable, fixed payments. This can be particularly reassuring during times of market volatility, as you won’t need to worry about losing value in your retirement income.
    3. Tax-Deferred Growth: For deferred annuities, the money you invest grows tax-deferred until you begin to receive payments. This allows your investment to grow without the drag of annual taxes on earnings, making it an effective long-term saving option.
    4. Flexible Payout Options: Annuities can be structured to fit your specific needs. For example, you can choose how long you want to receive payments (for life or a certain period), whether the annuity should continue for your spouse after your death, and whether you want to adjust for inflation through indexed payments.

    Canadian Annuity Rates and Retirement

    In Canada, annuity rates fluctuate based on factors such as interest rates, age, and life expectancy. Currently, higher interest rates can result in higher payouts, making annuities more attractive in certain market conditions. Annuities can be purchased with registered funds (like RRSPs) or non-registered funds. For those with an RRSP, it’s essential to make an election by the time you turn 71 on how to convert your RRSP into retirement income—either through a Registered Retirement Income Fund (RRIF) or a registered annuity.

    Annuities and Tax Considerations

    One of the often overlooked advantages of annuities is their potential tax benefits. Non-registered life annuities may allow for some tax-efficient income. Payments from such annuities are treated partly as a return of capital, which is not taxed, and partly as income. This can help lower your overall tax burden, especially if you are in a higher tax bracket.

    Moreover, if you are concerned about Old Age Security (OAS) clawbacks due to high taxable income, structuring your income sources with annuities can help you stay below the threshold that triggers these clawbacks.

    Beaton Annuity Services: Your Partner for a Secure Retirement

    Beaton Annuity Services is dedicated to helping you secure a stable and reliable income throughout your retirement. We offer a wide range of annuity plans for retirement, including Life Annuities, Term Certain Annuities, and Cash Back Annuities, tailored to meet your financial goals. Our experienced professionals work closely with you to simplify the process, ensuring your annuity plan fits your needs. With our expertise, you can enjoy peace of mind knowing your retirement income is guaranteed, tax-efficient, and protected from market risks. Trust Beaton Annuity Services to safeguard your financial future.

    Categories

    Archives

    Tags

    annuity Annuity Guarantee Period annuity rates benefits of deferred annuity bitcoin buy deferred annuity deferred annuity deferred annuity benefits deferred annuity canada downsize exchange indexed annuities inheritance life annuities life annuity Life Pay Annuities lump sum Manulife money payments protected regular savings RRSP sold business stock market gains Term Certain Annuities term certain annuity variable annuity won lottery

    buy annuities canada

    What is an Annuity Broker?

    An annuity broker is a person who has chosen to do business with a large number of life insurance companies in order to find the best products for a particular client’s needs.

    About Us
    annuity rates canada

    John Beaton

    John has been a life insurance and annuity broker for over 30 years.

    Currently specialising in advising seniors about the advantages of annuities in their retirement years, John draws on significant life experiences to help him find the best annuity fit for your specific needs.

    Pages
    Contact Us

    Beaton Annuity Services
    15310 Pacific Avenue,
    White Rock, B.C. V4B 1P9
    Local Tel: (604) 535-2404
    Toll Free Canada: 1-800-667-8818
    Website: www.annuitybrokers.ca
    E-mail: john@annuitybrokers.ca

    Areas Served

    British Columbia
    Alberta
    Ontario

    © 2001-2024 Beaton Annuity Services | All Rights Reserved