What is an annuity?

An annuity is guaranteed income for life.

Annuities can be bought from Insurance Companies. The amount of your guaranteed income for life is based on the total payment to the insurance company you provide at the time of contract, your age, and the options you have chosen. The insurance company calculates and contractually guarantees an income based on that amount plus current interest rates for the rest of your life.

Annuities are very helpful when it comes to retirement planning. They can help contribute to help cover your retirement expenses along with RRSPs, pensions, and other investments. There are many reasons why annuities are so helpful. Annuities help people never run out of income, for life. They help people plan a budget around a fixed income from annuities. Annuity income isn’t affected by financial market changes so it remains steady.

Disclaimer: Insurance, Investment and Mortgage products & services are provided by Devangkumar Shah.
Mutual Funds license sponsored by Shah Financial Planning Inc.
Lotus Loans and Mortgage ltd. is the principle mortgage broker.