The Canadian Income Annuity Authority
Cash Flow From An Income Annuity May Be The Heartbeat Of Your Retirement
The Canadian Income Annuity Authority
Cash Flow From An Income Annuity May Be The Heartbeat Of Your Retirement
Cash Flow From An Income Annuity May Be The Heartbeat Of Your Retirement
Cash Flow From An Income Annuity May Be The Heartbeat Of Your Retirement
Many recent studdies show that retirees with significant guaranteed incomes live longer and happier lives. This is because they have addressed the number 1 retirement worry, the fear of running out of money in their lifetime. So they can confidently spend their money on the “nice to have things” and spontaneous opportunities that create quality of life in retirment.
We’re on a mission to help Canadians discover how to use retirement annuities effectively to create Income Security.
Annuities aren’t sexy like stocks and investment funds. They just don’t have the sizzle most marketing departments crave.
They are ‘steady eddies’ that create reliable paycheques for Canadian retirees….. month in, month out depositing to your bank account on the specified day that’s it.
Because they aren’t very exciting, the quantity and quality of resources created by Insurance company marketing teams is very limited.
There is a myth that is perpetuated by people who haven’t kept up on the latest developments in the Annuity Income industry, that scares many retirees away from considering an Annuity to create Income Security in Retirment.
It states “if you die before your money is fully returned or runs out the Insurance Company ‘Automatically’ wins and gets to keep all of your money.”
This isn’t true.
The industry has come a long way over the last fifty years. The product design of the annuities available today and the consumer protection legislation surrounding annuities has advanced significantly since those days and the power to choose has been awarded to the consumer.
You will be able to decide how much of your initial deposit you want to guarantee as a minimum to be paid out no matter when you pass away. You can choose any custom amount, it may even be more than your initial deposit.
Another popular option includes a lump sum cash refund of any unused portion of your deposit to your beneficiaries, which is similar to how the balance of your RRIF (Registered Retirement Income Fund) would be transitioned to your beneficiaries or estate.
Annuity training is very limited in the industry, because most advisors aren’t very interested in learning about these products.
The material included on annuities in the major financial industry licensing and designation programs often amounts to a few pages in a single chapter of the text book.
It is the rare advisor who seeks out advanced on the job training and information from colleagues and mentors through collaborative work. You are fortunate if you have already found one of these individuals to work with.
Similar to how a craftman’s knowledge is passed down to their protege, advanced annuity training and knowledge is passed down from mature advisors to their successors.
Unfortunately, few Canadian advisors over the years have specialized their business around creating Income Security with Annuities, making this kind of knowledge hard to find.
Similar to most other businesses, your advisor’s financial advisory business has recurring monthly expenses including the advisor’s income that need to be paid to remain in business.
As an advisor develops their business, certain product lines like investments with fees based on AUM (Assets Under Management) create recurring monthly revenue for the business and advisor’s income from the fees clients pay.
When a client buys a Life Annuity or Term Certain Annuity, the advisor receives a small one time lump sum commission and no additional monthly revenue.
This amount is many times less than what the advisor could expect to make based on the AUM model over the client’s lifetime.
As a result, many advisors have decided NOT to include Annuities in their routine product recommendations to their clients, and will only provide these when a client requests it.
This is so rampant in the industry that Advisors joke about not selling annuities by calling it “Committing Annuicide” because it kills their businesses recurring revenue stream.
The three pillars of financial services are Banks, Securities dealers & Insurance companies.
Each piece of legislation operates in Canada as a silo, and there are special rules that limit any crossovers between these three.
For the Banks, this means that other than being allowed to offer one specific form of creditor life, creditor disability and creditor critical illness coverage, the Canadian Banks are NOT Allowed to offer Insurance Products to their Banking clients at the Bank branch period.
If your financial advisor is located inside your bank branch, chances are they will never discuss the benefits of an Annuity to your Income Security, even if choosing one would significantly increase your after tax retirement income over your lifetime.
Don’t believe it?
Find out for yourself by asking your banker or bank based financial advisor for a personalized Annuity Rate Market Survey for your retirment income planning and see what happens.
Annuities can only be purchased from Life Insurance Licensed financial advisors.
Annuity rates vary daily. The amount of guaranteed income an insurance company is willing to provide you for your lump sum deposit into their annuity can change significantly from day to day and week to week. There are even specific times of year when you have the opportunity to receive better rates.
There are over 10 major insurance companies offering annuities. Each one has a specific payout they will provide and these can vary significantly.
It is critical to work with a Qualified Annuity expert who is contracted to do business with all of these companies and will provide you a personalized and custom market survey of ALL of your annuity options so that you can choose the one that meets your needs the best.
Be wary of someone who only shows you one option and doesn’t share information on the best times of the year to buy your annuity.
Annuities are NOT suitable for everyone. They are more complex than they first appear. Specialized expertise is necessary.
Like the decision to remove ‘conditions’ on your offer to purchase a home, the decision to buy an annuity is a big decision that will effect your life. This is why we recommend that you obtain specialized advice from a Qualified Annuity Expert. They will explain all of the options like Cost of Living Increase (COLA), income deferral, how your income is protected by Assuris and help you make an informed decision.
We help take the mystery out of Canadian retirement income annuities by answering some of the most commonly asked questions in a simple, educational personalized way.
Our Qualified Annuity Experts will provide you with objective annuity advice and show you how including an annuity in your retirement income plan might help you achieve your life and legacy goals.
Because they are fiduciaries, they will be frank with you and tell you if an annuity isn’t a good idea given your circumstances and point you in the best direction so you will have a better outcome.
If this is the case they will advise you in writing as to why they aren’t suitable for your situation so that you won’t end up regretting your annuity decision later.
We offer a no cost, no obligation, no sales pitch, no pressure, all questions answered 15 minute chat.
If you are interested in learning more just click the button below to schedule your chat get your answers from one of our Qualified Annuity Experts.
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