Barring a resurgence of inflation, we are now on the downslope for both interest rates and the payouts available from annuities.
The good news here is that annuity payouts are still robust by the standards of the past decade. If you like the idea of exchanging a slice of your retirement savings in exchange for a lifelong monthly payout, give annuities some thought.
Your challenge in researching annuities is finding quotes without having to consult with sellers of insurance products and advisers. You’ll need to connect with someone to buy annuities, but it is possible to get some comparative quotes in advance. It’s mandatory to do this advance comparison because annuity rates vary a lot from company to company. Never approach just one annuity-selling insurer and take what they offer.
In a recent post on annuities, I invited readers to share websites they’ve used for annuity quotes. Two websites were mentioned:
Cannex: This provider of financial data offers a free snapshot of annuity rates - an average of the best five payouts for a non-registered $100,000 annuity for men and women aged 70. The monthly payouts are shown for annuities with a 10-year guarantee and deferrals of one month and five years before payments begin. The 10-year guarantee means payments will be made for 10 years, even if the annuitant dies. In that case, the beneficiary or estate receives payments until the end of the guarantee period. Note that Cannex quotes are updated daily.
LifeAnnuities.com: This annuity seller offers comprehensive quotes that show how payments grow if you delay buying a $100,000 registered annuity from age 55 to as late as 80. Half a dozen or so quotes are shown for various types of annuities, with numbers for men and women. The quotes on this website are updated less frequently than Cannex, which is noteworthy because annuity payouts can be volatile when interest rates are fluctuating.
The Globe and Mail: Cannex-supplied data showing quotes for $100,000 registered annuities of various types for men and women. Data updated daily.
And, finally, here’s one more website that might be useful for your annuity research:
RBC Insurance: You can be specific with this quote engine for RBC’s own annuities - add the specific age you want to buy an annuity, and the amount. You can also compare annuity payouts against what a registered retirement income fund could produce with various rates of return.
Rob Carrick