Annuity Growth Account

Offering excellent growth for the future Canada Life's Annuity Growth Account is one of the most innovative and flexible products available today. Combining our highly competitive annuity rates with the opportunity to achieve significant growth this product is designed to provide an alternative to being locked into one annuity rate for life.
It offers: Flexible 5 year guaranteed annuities Potential for substantial growth in annuity level Outstanding flexibility No lock-ins for at least 10 years Stable initial annuity Survival bonus
How does it work? Instead of buying a lifetime annuity, you transfer your pension fund into the Annuity Growth Account. You then buy a 5 year annuity with an income guaranteed for all 5 years. Because a 5 year annuity costs less than a lifetime annuity there will be money available for investment. And that's where future annuity growth can come from. After 5 years, you can take out another 5 year annuity or buy a lifetime annuity.
Extra Growth Potential To give your money every opportunity for growth, the Annuity Growth Account invests in a range of unit linked funds.
Outstanding Flexibility Flexibility is built at every stage. - you can choose the level of initial income - leaving more for investment - you can choose which funds to invest it in - you can choose whether to buy another 5 year annuity or a lifetime annuity - you can choose to build in a guarantee providing benefits for your spouse if you die.
Survival Bonus If you and your spouse (if a spouse's pension has been selected) survive the 5 year period, a survival bonus will be added to the value of your investments, providing them with an extra boost. So as you can see, it truly is a flexible way of securing your income in retirement. For further information, call us on 0845 330 3486 or talk to your Independent Financial Adviser. If you have a query on an existing annuity with us, contact our Customer Service team on 0845 6060708.
The value of the investment element of the Annuity Growth Account is not guaranteed and depends upon the performance of the selected funds. At each subsequent 5-year anniversary of the AGA, annuity rates may be lower than at outset. If so, when securing another 5-year immediate annuity or lifetime annuity using the value of the investment element, the annuity rate may give a smaller income than your client or you could have received at outset (depending on the level and type of annuity selected). Past Performance Please note that the value of the investment element of the Annuity Growth Account is not guaranteed. Past performance is not a guide for the future. The value of units can fall as well as rise and currency fluctuations may also affect performance.

Page last updated September, 2008 ID 2688