What is a payout annuity?
Simply put, a payout annuity is an easy way to convert some of your savings into regular income payments. A life annuity, a type of payout annuity, can help provide a steady source of income throughout your retirement.
- What’s the best way to tap your retirement income?
- How to keep more of your retirement income and pay less tax
How does a life annuity work?
You buy a life annuity from an insurance company, which calculates your payments based on:
- the amount of savings you’re converting,
- long-term interest rates, and
- the life expectancy of a person your age and gender.
Then, you can enjoy the financial security that comes with knowing you’ll get guaranteed income payments for life.
- Find out how much income you can get from a life annuity with our annuity calculator.
What other types of payout annuities can you buy?
- Joint life annuities provide payments for as long as either you or your spouse live.
- Term certain annuities provide a set number of payments.
Is a life annuity right for you?
A life annuity is helpful if you:
- want guaranteed income to pay ongoing fixed expenses in retirement,
- don't want to make any more investment decisions or
- want to avoid the risk of outliving your money.
Need help getting started?
A Sun Life Financial advisor can help you build a savings plan that meets your goals and needs. Most advisors now offer to meet Clients virtually by video chat. Find an advisor today.
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