Annuity Payment Estimator
This article provides a rough guide on how much an annuity pays based on several factors. Step by step instructions for the annuity payment estimator are provided below the table plus a example. Please note that this information is current as of the date and time posted and is subject to change without notice.
|Non-Registered Annuities||Registered Annuities|
|Single Life – Male||Single Life – Female||Joint Life||Term Certain||Single Life – Male||Single Life – Female||Joint Life|
|No Guarantee||No Guarantee||No Guarantee||3 Years||No Guarantee||No Guarantee||No Guarantee|
|5 Years||5 Years||5 Years||5 Years||5 Years||5 Years||5 Years|
|10 Years||10 Years||10 Years||10 Years||10 Years||10 Years||10 Years|
|15 Years||15 Years||15 Years||15 Years||15 Years||15 Years||15 Years|
|20 Years||20 Years||20 Years||20 Years||20 Years||20 Years||20 Years|
|25 Years||25 Years||25 Years||25 Years||25 Years||25 Years||25 Years|
Step 1: Are you considering a registered or non-registered annuity? A registered annuity means using money from an individual RRSP (Registered Retirement Savings Plan), locked-in RRSP, pension plan or deferred profit sharing plan (DPSP). A non-registered annuity would be using money from a savings account or perhaps proceeds from the sale of a home.
Step 2: Do you want the payments based on your life only, your spouse or based upon you and your spouse.
Step 2A: There is one column entitled “term certain”. Term certain annuities pay a periodic income for a specific predetermined period of time or number of payments. After that point, there are no further payments, so it’s not based upon your life expectancy.
Step 3: In each column, you will see blue hyperlinks which are either “No Guarantee” or for a set number of years. This is the length of years that the annuity guarantees to pay at a minimum. For example, if you select a 10 year guarantee and you were to pass way after seven years, the remaining three years of payments would go to your beneficiary that you designate.
Example: Based upon the time of this article, I chose a non-registered annuity, for a single-life male with a 10 year guarantee period. So I clicked on the link, that is circled in red.
And the table below is displayed. It shows the monthly income based on a investment of $100,000.00. Payments will commence in one month. So in the example, for BMO Insurance, a 60 year old male investing $100,000, would receive $489.52 per month. It also show payments for other ages.
I hope this gives you a rough idea of what an annuity may pay. Please note that I provide annuity quotes free of charge for ll the large Canadian Annuity providers, so if you have further questions, please click on the “Ask a Question” box and I will contact you to verify the information for your personalized quote.
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