Comparing Income Options

For those approaching retirement, it’s time to think about how you’re going to draw income from your hard-earned savings in a way that’s best for you.
Below you can review the advantages and disadvantages of various retirement income options. You can use this information to help you select the option – or combination of options – that works best for you. For example, combining a RRIF and an annuity gives you both income flexibility and security.

Fixed Annuities

Advantages   Disadvantages
 *  Easy to manage    *  Income depends on interest rate at time of purchase
 *  Certainty of income payments    *  No investment flexibility
 *  Can make a great base for your plans    *  Inflation may erode purchasing power
       *  With term annuities holder may outlive income
       *  With life annuities heirs won’t receive benefit
       *  Options for dealing with disadvantages come at costs