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:

How does it work?
Instead of buying a lifetime annuity, an option is to transfer your pension fund or use your Open Market Option (OMO) to purchase an Annuity Growth Account. You then buy a 5 year fixed income.

Because a 5 year immediate fixed income costs less than a lifetime annuity there will be surplus money from your transfer or OMO available for investment, providing potential growth and possible increases to your level of income.

After 5 years, your account is reviewed with the option to take another 5 yearly fixed income, buy a lifetime annuity or transfer to another provider. Please note providers are not obliged to accept all transfers.

Extra Growth Potential
To give your money every opportunity for growth, the Annuity Growth Account invests in a range of unit linked funds, managed by Canada Life and external fund manager groups.

Outstanding Flexibility
Flexibility is built at every stage.

  • you can choose the level of initial income to suit within prescribed limits leaving more for investment
  • you can choose which funds to invest suiting your attitude to risk
  • you can choose whether to buy another 5 year fixed income or a lifetime annuity
  • you can choose to build in a guarantee and/or provide benefits for your spouse or dependents 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 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 July, 2009 ID 2688