At what age should I apply for an annuity?

An annuity is an insurance policy that provides a guaranteed income stream for a specified period of time, usually for the rest of your life. You can purchase an annuity with a lump sum of money, or with periodic payments.

There is no one-size-fits-all answer to the question of when to apply for an annuity. The best time to do so will depend on your individual circumstances, including your age, health, financial situation, and goals.

If you are nearing retirement age and have a significant amount of money saved up, you may want to consider purchasing an annuity. An annuity can provide a guaranteed income stream during retirement, which can help to cover expenses and maintain your lifestyle.

If you are in good health and have a long life expectancy, you may want to wait to purchase an annuity. This is because you will likely receive more income over the course of your lifetime if you wait to purchase an annuity.

If you have a health condition that is likely to shorten your life expectancy, you may want to purchase an annuity sooner rather than later. This is because an annuity can provide income for your beneficiaries after you die.

Ultimately, the best time to purchase an annuity will depend on your individual circumstances. You should speak to a financial advisor to discuss whether an annuity is right for you and to determine the best time to purchase one.

Read our latest articles

Always seek advice from your financial planner. If you are a member of one of the BC Public Sector Pensions plans, you can see what the Pension Corporation says about your situation. Their pages provide a detailed summary of your options.