As rising interest rates continue, annuity payouts have increased too. Below I have a table showing how annuity payout rates have increased substantially since the when I started this blog, September 2020, almost three years ago.
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.
While payout rates will be different for females or joint couples, the table above shows the trend of increasing payouts. Their are many different options available whether you are using registered money or no-registered, several guarantees and even inflation protection up to 4% annually. These all affect the payout so in reality, there are almost countless options available. As an annuity broker, I offer annuities from al the annuity providers. Simply contact me if you’d like a quote or click this link to fill out the form and receive your annuity quote.