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What is an income annuity?

An income annuity provides you with a steady stream of guaranteed income over time. You can set the income terms, allowing you to receive income payments on a monthly, quarterly, semi-annual or annual basis – making it an ideal tool in planning for retirement.

An income annuity is about security: You can choose to guarantee income payments for a set term or the rest of your life – it’s like your retirement paycheque. No matter how the markets fluctuate or how much interest rates rise and fall, you’ll continue to receive income payments that can help you support your retirement spending.

The income annuity is an important part of the HelloLife retirement income program. To find out more about income annuities or HelloLife, talk to your financial security advisor.

How does it work?

Your financial security advisor can help you find out how much you need to put into your income annuity. You can designate a portion of the money you set aside to cover items you’ll need in retirement – like housing, vehicle and food costs. The amount of money that’s designated for your income annuity will be received as income payments at the frequency you choose – it’s the paycheque you’re used to having in your working years, now in retirement.

You can choose an income annuity based on the lives of one person (single annuity) or two people (joint annuity). There are various options available to help you meet your retirement income needs. Some options don’t apply to every type of annuity, so consult your financial security advisor for help determining the option that’s right for you.

How will it benefit me?

Income you can count on

Regular income payments for life or a fixed time, regardless of market performance or changes in interest rates.

Access to cash

Say there’s an emergency and you suddenly need money. The cashable feature of your income annuity will allow you to cash out some (or all) of your guaranteed income payments (and you can do this up to the end of the guaranteed period). This will stop or reduce your income payments until the end of the guaranteed period, then income payments will start or increase again. This feature is only available with a non-registered annuity with accrual taxation.

Making your money last in retirement

If you’re concerned about outliving your money in retirement, a lifetime income annuity could provide you with money for the rest of your life.

Supplemental income

An income annuity can help you top up the income available to you through government benefits such as Canada Pension Plan/Quebec Pension Plan or Old Age Security.

Income now or later – it's up to you

You can choose to start your income annuity right away or wait until later in life, when you may need the income more. It’s your call.

Talk to an expert

Not feeling confident in your finances? You can talk to one of our financial security advisors who will work with you to craft a financial plan tailored to your needs.

Contact an advisor