Canada Life launches five year annuity

Canada Life is to launch an annuity product with a five-year option on 31 May, which means there is ...

Canada Life is to launch an annuity product with a five-year option on 31 May, which means there is no requirement to enter into a lifetime annuity arrangement. The product means that a fund of £100,000 can purchase the Annuity Growth Account at £35,000, securing a return of £7,500pa for five years. The remaining £65,000 can be invested in another investment vehicle. Based on the minimum growth rates of 7%pa, the investment is likely to have grown back to £100,000, allowing the annuitant to purchase another five years or choose a lifetime arrangement. The client's annuity level is guara...