Services for School Boards
Sample Retirement Income Options
Life Annuity
– Sample Monthly Pensions
The following table gives examples of what your monthly pension might be at
retirement, depending on your account balance at retirement, at what age you
retire, and the form of pension you choose. They are based on current interest
rates as of May 2010, which are subject to change.
| Account Balance at
Retirement: $50,000 |
|
Age at Retirement |
| Form of Pension |
|
55
|
60
|
65
|
|
| |
Life – Guaranteed 15 years |
|
$255 |
$276 |
$300 |
|
| |
Joint & Survivor 100% - Guaranteed 15 years |
|
$228 |
$244 |
$266 |
|
| |
Joint & 60% Survivor – Guaranteed 15 years |
|
$238 |
$256 |
$279 |
|
| |
|
|
|
|
|
|
| Account Balance at Retirement: $75,000 |
|
Age at Retirement |
| Form of Pension |
|
55
|
60
|
65
|
|
| |
Life – Guaranteed 15 years |
|
$382 |
$414 |
$450 |
|
| |
Joint & Survivor 100% - Guaranteed 15 years |
|
$341 |
$367 |
$399 |
|
| |
Joint & 60% Survivor – Guaranteed 15 years |
|
$357 |
$384 |
$418 |
|
| |
|
|
|
|
|
|
| Account Balance at Retirement: $100,000 |
|
Age at Retirement |
| Form of Pension |
|
55
|
60
|
65
|
|
| |
Life – Guaranteed 15 years |
|
$509 |
$551 |
$600 |
|
| |
Joint & Survivor 100% - Guaranteed 15 years |
|
$455 |
$489 |
$532 |
|
| |
Joint & 60% Survivor – Guaranteed 15 years |
|
$475 |
$512 |
$557 |
|
Pension Descriptions:
The life pension guaranteed for 15 years is a pension that is paid every
month for your lifetime. The 15 year guarantee means that the monthly pension
will be paid for at least 15 years, even if you die before 15 years of pension
payments have been made.
The joint and 100% survivor pension guaranteed for 15 years is a pension that
is paid every month for your lifetime and your spouses' lifetime. The 15 year guarantee means that the monthly pension will be paid to your beneficiary for at least 15 years should both you and your spouse die before 15 years of pension payments have been made.
The joint and 60 % survivor pension guaranteed for 15 years is a pension
that is paid every month for your lifetime. The 15 year guarantee means that if you die within the first 15 years the monthly pension will be paid for at least 15 years to your surviving spouse and then reduced by 40% payable for the remaining lifetime of your spouse. Should both you and your spouse die before 15 years the monthly pension must be paid for at least 15 years to your beneficiary.
These sample monthly pension amounts are only an example of what your monthly pension might be when you retire, and depend on the interest rates that are in effect when you retire. These interest rates are subject to change, which means that your monthly pension when you retire could be different from the samples shown. |
Life Income Fund
– Sample Monthly Pension
The following tables give examples of the maximum monthly income payments
under a LIF contract for an individual 55 and 65 years of age with an account
balance at retirement of $100,000. The illustration assumes a fixed rate of
interest at 5.0% and the maximum withdrawal percentages at each age have been
fixed.
| January 2010 |
Life Income Fund |
| Age at Retirement: 55 |
Investment Return: 5% |
| Account Balance at Retirement: $100,000 |
Frequency of Payments: Monthly |
| Year (Age) |
Minimum Percentage |
Maximum Percentage |
Monthly Maximum Income |
|
2010 (55) |
0.00% |
6.40% |
$533 |
|
2015 (60) |
3.33% |
6.70% |
$513 |
|
2020 (65) |
4.00% |
7.20% |
$497 |
|
2025 (70) |
5.00% |
7.90% |
$477 |
|
2030 (75) |
7.85% |
9.10% |
$460 |
|
2035 (80) |
8.75% |
11.50% |
$447 |
|
2040 (85) |
10.33% |
16.00% |
$403 |
Account balance at end of 2040: $26,791 (assuming maximum is withdrawn each year)
| January 2010 |
Life Income Fund |
| Age at Retirement: 65 |
Investment Return: 5% |
| Account Balance at Retirement: $100,000 |
Frequency of Payments: Monthly |
| Year (Age) |
Minimum Percentage |
Maximum Percentage |
Monthly Maximum Income |
|
2010 (65) |
0.00% |
7.20% |
$600 |
|
2015 (70) |
5.00% |
7.90% |
$577 |
|
2020 (75) |
7.85% |
9.10% |
$556 |
|
2025 (80) |
8.75% |
11.50% |
$540 |
|
2030 (85) |
10.33% |
16.00% |
$487 |
Account balance at end of 2030: $32,366 (assuming maximum is withdrawn each year)
Legislation in Manitoba now allows a LIF contract owner who is at least the
age of 55 to apply for a one-time "prescribed transfer" of up to 50% of
all of their funds under a LIF to a Prescribed RRIF. The RRIF provides greater
flexibility in the amount of income you can withdraw.
|
