An Equitable Life Payout Annuity provides you with a guaranteed income in one easy, worry-free solution. We offer a wide range of income options that will allow you to build a retirement income solution that best suits your financial goals.
- Guaranteed income for life or for a specific period of time
- Flexibility with payment frequency, length of guarantee, type of payout annuity
- No need to worry about market fluctuations or changes in interest rates
- Creditor protection – naming a beneficiary may protect income payments from creditors, subject to certain conditions
- Preferred tax treatment – enjoy tax-sheltered advantages
- Avoids probate – naming a beneficiary may help avoid the probate process
- Assuris guarantee – Equitable Life is a member of Assuris, the organization that provides protection to Canadian policyholders
Equitable Life Payout Annuities offer a simple, yet effective solution that will work to meet your individual needs. Payout Annuities are as unique as you are and are ideal for:
- Individuals looking to cover a short or long term income need
- Converting registered savings to income
- Retirees looking for guaranteed income that will not be impacted by interest rates or market fluctuations
- Covering fixed regular expenses in retirement
- Eliminating worry of outliving your savings
- Providing guaranteed income for your spouse after your death
- Business owners without a company pension plan
- Tuition payments for a child or grandchild
It's simple - no matter what happens to the markets or interest rates, you do not have to worry about making investment decisions or risk outliving your savings.
With an Equitable Life payout annuity you can be assured that our rates are among the best in the industry. We offer a wide range of payout annuity income options to customize the retirement income solution to best suit your financial goals and dreams. Income you can count on.
Payout annuity options
- Life annuity provides a guaranteed income for the remainder of your life.
- Annuity certain (non-registered only) provides guaranteed income payments for a specific period of time (5 to 30 years depending on age at time of application).
- Annuity certain to age 90 provides guaranteed income until age 90.
- Joint and survivor and Joint and survivor (with reducing payments) provides guaranteed income for the remainder of your life and your spouse's life.
Depending on your plan you can choose from 5 to 30 years of guaranteed payments. If you pass away before the end of the guarantee period, your payments can continue to a named beneficiary, or be distributed to your beneficiary as a lump sum.
At the time of issue you have the option of indexing your payments by up to 2% each year. This helps to ensure that the value of your income payments are not eroded by cost of living increases that occur over the term of your contract.
While saving for retirement, your registered investments have enjoyed the benefits of tax-sheltered growth. Income payments from Payout Annuities purchased with registered funds are fully taxable in the year you receive them.
This tax option is unique to non-registered payout annuities. Policy owners enjoy preferred tax status and level taxation – two great benefits which can result in significant after-tax savings. These benefits are discussed below:
- Preferred tax status:
The Canada Revenue Agency (CRA) assigns a preferred tax status to prescribed life annuities, which allows only a portion of the interest income to be taxed. This provides significant tax savings in comparison to other non-registered investment options.
- Level taxable income:
Unlike other investments, a prescribed life annuity has a level taxation structure, which means the taxable amount is spread out evenly over the future life of the owner. As a result, the after-tax income is relatively consistent. This can help to ensure that essential expenses are covered, and help you to know the amount of discretionary income that is available each year.
When it comes time to receiving your payments there are various factors that will affect the income amount that you will receive, including:
- Age – The longer the life expectancy, the lower your payments will be.
- Sex – Life expectancy for males and females differ. Females are typically expected to live longer and therefore will receive lower payments.
- Interest Rates – Your payment is based on the current long-term interest rate outlook.
- Amount of Deposit – The larger your investment, the higher the income payments will be.
- Guarantee Period – The shorter the guarantee period, the larger your payments will be.
- Indexing – The higher your indexing rate, the lower your initial payment will be. However, over time the payment level will increase and ultimately become higher than the non-indexed payments.
If you do not have a financial advisor and would like to speak to one, call us at 1.800.668.4095 and our customer service team would be pleased to have an advisor in your area contact you.