Who is this for?
Retirees or those nearing retirement could receive a steady stream of guaranteed income through an income annuity. You can choose to receive payments on a monthly, quarterly, semi-annual or annual basis for a set term or the rest of your life.
Put simply, it’s a way for Canadians to transform their retirement nest egg into a predictable stream of income that can support their spending in retirement. By doing so, an income annuity can help provide Canadians with certainty during their retirement years.
How will this help me?
Putting a portion of your retirement savings into an income annuity can help you cover basic spending in retirement, such as housing, vehicle and food costs. If there’s an emergency and you need money, the cashable feature (available on some but not all income annuities) allows you to take out some or all of your guaranteed income payments up to the end of the guaranteed period.
Additionally, if you die before the guaranteed period ends, your beneficiary can either receive a lump sum payment or they can continue to receive your regular payments until the end of the guaranteed period.
What else do I need to know?
How it works
Similar to a pension plan, an annuity can be thought of as a pooling of money from thousands of Canadians. By investing your money conservatively, London Life can guarantee you receive an income in retirement, no matter how markets fluctuate. Then, as the years go on, you’ll continue to receive the same income payments.
An income annuity can help you “top up” the income you receive from the government through Old Age Security (OAS), the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP).
Income when you want it
You can choose to start your income annuity right away or wait until later in life. It’s totally up to you. The income annuity is an important
part of the HelloLife retirement income programOpens a new website in a new window. To find out more about income annuities or HelloLife, talk to your financial security advisor.
Connect with an advisor
Working with a financial security advisor can provide you with the tools and expertise you need to plan for the future.