How Are Life Annuity Rates Arrived At?
Life annuity rates are a blend of ages and long term bond rates, not current GIC rates. The age factor is predominant. In other words, you can wait, but you then need the time to make up for taking a slightly less payment today. In other words if the payment is $500 today and $550 in 1 year's time, you need 120 months to make up the loss of the missed payments. It is something you need to consider.
posted by Ivon T. Hughes at 11:08 AM
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