by LANA SANICHAR

With only a few more years to go, the topic of retirement continues to be an important conversation between me and my spouse. And in my never-ending quest to increase my knowledge about products and services to ensure that we have a sufficient amount of money to fund our retirement goals, I decided to reach out to Rino Racanelli, a Canadian MoneySaver contributing editor and an independent annuity adviser at BestAnnuityRates.ca to help me understand a little more about annuities and if we should consider them as part of our retirement plan.

Racanelli told me that an annuity is a steady stream of guaranteed income payments you receive in exchange for a lump sum of cash. The lump sum of cash to purchase an annuity can be from several sources, including your registered retirement savings plan, pension plan, registered retirement income fund or money you have in your bank account.

A simple investment, most annuities are purchased by retirees looking for a guaranteed retirement income they can never outlive. For retirees or soon-to-be retirees who are concerned about stock market volatility and a low-interest-rate environment, buying annuities can be a comforting option.

Racanelli explains that there are three main types of annuities:

• A single life annuity will provide you with an income for as long as you live.

• A joint and last survivor life annuity is payable while either you or your spouse/partner are living. When one spouse/partner dies, the survivor can continue receiving income payments.

• A term certain annuity provides you with an income for a set period of time, or until a certain age.

  He also mentions that annuities can be purchased from most Canadian insurers. When you purchase an annuity product, it is important to shop the market. Some insurers offer better rates for certain age groups and/or on the basis of gender. Other companies offer better joint life, single life and/or term certain rates.

  So I may be a little nervous about this next chapter in life, but I find that knowledge is power, and while life is unpredictable, preparedness can hopefully aid in a smoother transition from working life to the retirement of our dreams!