Don Maycock...advising you to and through retirement!

Annuity Update – April 2021

Annuity Update - April 2021

In September 2020, I began a quarterly report on "Annuities".  In a nutshell, I'll show the change in annuity payments over time, when all other parameters are held constant. Since I began reporting, interest rates have increased slightly, and so did annuity payouts.

Methodology

Every three months, I update the default annuity quote (using the Cannex system). The default client is as follows.

  • 65 year old male who's birthday is exactly 65 years on the date the annuity survey is produced,
  • invests in a "life annuity" using $100,000 from an RRSP,
  • invest in the annuity on his 65th birthday,
  • begins receiving monthly payments for life beginning one month after the purchase date,
  • chooses a "10 year guarantee period". This option means should he pass away before the 10 years of payments are made, the "beneficiary" will get the balance of payments as a lump sum commuted value.

What's Changed Over the Past Few Months?

The default annuity payment has risen (all things being equal) by 4.7% ( $499.9 minus $476.82 =$23.08) since September 1, 2020.

 

Income Annuity Summary for April 1, 2021

Below is an annuity survey produced on April 1, 2021 with the highest monthly payout highlighted in yellow.  I did not show which company as that can change depending how each provider prices their annuity. There is no one provider with the best rate, all the time. 

 

Featured Annuity Provider - Empire Life

Learn more about the different types of annuities offered by Empire Life by clicking the following link, Empire Life Annuities. 

Would your Beneficiary Be Able to Handle a Large Inheritance?  

One feature that Empire Life offers with their investment products (segregated funds) and life insurance is referred to as an Annuity Settlement Option. If you have young dependents or your beneficiaries are not financially savvy, a large payment of your death benefit proceeds may not be desirable. By adding the Annuity Settlement Option to your Empire Life policy, you control how the proceeds will be paid out.  Click here to learn more about the  Empire Annuity Settlement option.

How I Can Help

Life annuities must be purchased by a life licensed insurance agent.  I am able to service investors across Ontario Canada and we don't have to meet in person one-on-one (read about my process here). If you would like to know what an annuity might pay in your situation, please click here to open the confidential form to request your custom Income Annuity Survey.

 

To learn more about annuities, enter your first name and email in the green box on this page. You'll receive a series of short emails with more tips, information and education.