After spending years working, you’re now closer to retirement and might be thinking about what that means to you. For most people, retirement is a time of mixed emotions. Along with the excitement of entering this new phase of life comes the nervousness stemming from the absence of a paycheque or steady income. As you approach retirement, you could be asking yourself:
- What will my spending look like in retirement?
- Will my money last?
- Do I need to worry about interest rates?
- How will market fluctuations affect my finances?
Do you have a plan in place for addressing these concerns? What if there was a way to help you feel confident about your finances in retirement?
Challenges in retirement
It is well-documented that Canadians are living longer. Statistics show retirees now need to plan for as long as 20 to 30 years in retirement1. This makes it critical to secure a part of your nest egg in a way that can provide you with guaranteed income – similar to a paycheque – for the rest of your life.
Income annuities – a steady paycheque throughout your retirement
Fortunately, there is a way for you to receive guaranteed income for life – with an income annuity. Securing a part of your retirement nest egg with an income annuity can help you cover most of your basic living expenses throughout retirement. Then the other portion of your money can be invested in funds that have the potential to grow.
Income annuities – other perspectives
Not only are annuities a great way to receive a steady income throughout retirement, there are other factors that make income annuities even more attractive in retirement. They provide excellent value even in low interest rate environments, provide a predictable income regardless of whether markets are up or down and can also help with estate transfer.
Watch this animated video about how income annuities can be your personal paycheque in retirement.
To find out more about how annuities work, exclusive annuity features and options and how income annuities may fit into your plans for retirement, speak to your financial security advisor.
1Issues related to increasing the “retirement age”, Canadian Institute of Actuaries, 2013. http://www.cia-ica.ca/docs/default-source/2013/213038e.pdf