Posted by Tim Stobbs on October 12, 2012
So as a follow up question to my previous post on The Cure for Pension Envy when I discussed annuities. I had a question from someone:
So how do you get an annuity quote?
Well you can search around the internet for public information on rates, for example I came across this website for Canadian information that would give you some ballpark numbers. Yet there is a problem with these sort of sites as they will even warn that the rates change constant due to a number of factors.
So what factors really matter? Well the obvious one would be the age difference between your spouse and you if you are looking for a joint annuity (when your spouse will continue to get payments if you die). If you are just six months apart in age that is one thing, but if you are six years apart that is an entirely different ballgame especially if you are picking up an annuity in your 70s.
So in the end, it might just be faster to breakdown and contact some companies directly and get some quotes. That way you can be sure to get the correct information for the options that you are looking for and for your particular situation. In general the quote forms will be similar and ask the following information: your name and contact information, what product you want a quote on (single, joint or term certainty), your age (and your spouses age if applicable), if you plan on using money from your retirement or investment accounts and then some details on what payments you are looking for (and how often) or the lump sum you are looking to invest.
A quick search with Google for ‘annuity calculator’ will generate a nice list of potential places to check out. For example I ran a few different searches and came up with a few sites like: Saga annuity calculator (UK) or RBC annuity calculator (Canada). You should with little difficulty be able to get a list of quotes to know approximately what you are looking at if you really want to buy an annuity.