As we enter 2013, the Democrats and Republicans appear to have made an uneasy peace which bodes not much change is coming for 2013 Canadian annuity rates.
Is that such a great change from 2011 and 2012 where not much change was seen either.
Below are tables showing Annuity Rates Comparison from 2011 to 2013.
2013 Male Annuity Rates
2013 Female Annuity Rates
2012 Male Annuity Rates
2012 Female Annuity Rates
2011 Male Annuity Rates
2011 Female Annuity Rates
In examining the returns, it would appear that not much has changed. Those waiting for higher annuity rates to guarantee a higher monthly return are still waiting. Annuity rates depend on a few important factors, all or any of which should not concern the potential annuitants.
What the annuitant needs to be concerned about is their own age and lifestyle. You are not going to live forever and the longer you wait to take your income, the less you will receive. Even if the rates increase, you still need to make up for the payments you did not take and the increase in capital you did not earn.
Annuities in 2013 don’t show any sign of major change, a little bit up and a little bit down, just like 2011 and 2012. Meanwhile you are getting older and losing valuable income if you don’t move.
You are not alone in waiting in the hope that change will come. We have one client, age 70 with a large amount earning less than 1% per year. He is losing money through lack of return and inflation and has been waiting for the rates to increase since 2010. Each year he has been offered progressively less and he has run out of time to maximize his income. Don’t be like this man.