Clients who've covered the essentials have room to look at creative ways to generate lifestyle income in retirement. This “income floor” helps provide guaranteed lifetime income to pay those basic expenses. Income from a payout annuity can supplement other sources of guaranteed lifetime income such as Canada Pension Plan (CPP), Quebec Pension Plan (QPP), Old Age Security (OAS) or a defined benefit pension. In exchange for a lump-sum premium, the Client receives a series of guaranteed income payments for one lifetime, two lifetimes or a specified period of time.Ĭanadians age 60 and over looking for a source of guaranteed income, usually for retirement.įor retired Clients, a key part of retirement income planning is ensuring that essential living expenses like groceries, rent and utilities are always covered. A payout annuity is an income-generating insurance product.