As we mentioned in other articles, the government only about 30% of our retirement income, pension plan, the company offers a further 30% and many of us do not. It is up to individuals, to invest in the short and long term access to compensate for the short time he or she wants to live comfortably after retirement without some pension plans. You have now reached their retirement age, there are some important investment for your RRSP or 401K plan. In this article we will discuss types of pension.

1
Annuity annuity is a financial contract is signed between you and insurance, which makes a series of payments in the future for you in exchange for immediate payment of a lump sum or series of payments prior to the return guarantee payments. Depending on the type of life annuity payments can not stop when you die, all payments to your spouse or beneficiary may like Guaranteed Term Annuity to be paid.

2 Term certain annuity
Term certain annuity offers you a fixed monthly pension until age 90, rather than for your whole life. If you die before the age of 90, your spouse receives the payments until her / his 90th Year. The minimum duration of the term certain annuity is 3 years and the maximum term is 40 years.

3 Prescribed pension
Prescribe pension has a preferential tax status. There is no tax on the return of capital, but the interest that is included in the pensioner’s income, level during the term of the annuity. The tax base is lower in the early years and higher in the later years because he only be purchased by non-registered money.

4 Deferred pension
In deferred pension, the proceeds must be used under the plan to purchase an annuity from a “special” date in the future, how can it not later than the January of the year, turn start of 70 years, although they have created, such as the age of 60 be.

5
Immediate annuity immediate annuity means once you pay a lump sum pension payments, you can immediately.

6th Pension payable
If cashable annuity is a clause in the contract, can the insurance you can in your pension cash if your health, or if interest rates are much higher than the purchase of pension to lose.

I hope this information will help. If you need more information or insurance advice, you follow my article series of the above topic on my home page at:
http://lifeanddisabitityinsuranceunderwriter. blogspot. com /