As mentioned in other articles of the Government accounts for only about 30% of our retirement income, retirement pension plan the company offers 30%, and many of us do not have one. It is up to individuals to invest wisely in the short and long-term to short-fall, or if he would like to live comfortably in retirement, without some plans for retirement. Now you’ve reached retirement age, there are some significant investment opportunities for your RRSP or 401k plan. In this article we will discuss types of annuities.
1. Life incomeLife annuity is a financial contract between you and the insurance companies, ensuring that a series of payments in the future to get in return for an immediate lump sum payment or series of payments prior to the return of payment. Depending on the type of life annuity payments, should not stop when you die, any payments made to your spouse or beneficiary, as the concept of guaranteed annuity. 2. Term certain annuity The term certain annuity you a monthly income until age 90, but not for its full life. If you die before the age of 90, your spouse receiving payments until his / her 90th year.The minimum term certain annuity term is 3 years and maximum period is 40 years.3. Prescribed annuityPrescribed annuity is a tax preferred status. There is no tax return on capital and interest, which is included in the annuitie’s revenue levels through the period of an annuity. The tax base is lower in the early years and higher in later years, since it can only buy non-registered money.4. Deferred annuity In a deferred annuity, the income from the plan to purchase an annuity that’special’date in the future, as it can not be implemented no later than the month of January of the year you turn age 70, although it can be put in place already for 60 years.5. Immediate annuitiesImmediate annuity means as soon as a lump sum payment, you may receive annuity payments immediately.6. Cashable rentaCashable annuity if the clause in the contract, an insurer may allow you to money in an annuity if you lose your health, or if interest rates are much higher than if you bought the annuity.