• The principal available and the payment frequency chosen by the annuitant. Obviously, the higher the principal, the higher the payments;
   
• The interest rate in effect at the time the annuity is purchased. The higher the interest rate, the higher the payment amount.  The interest rate used to calculate the annuity remains the same for the term of the payments, regardless of future rate fluctuations. In fact, at the time an annuity is purchased, the financial institution makes an investment for the duration of the payment term. It must therefore take into account market rates at that time;
   
• The guaranteed payment term of the annuity, for a term certain annuity.  The longer the guaranteed payment term, the lower the payments;
   
• The annuitant's age and sex, for a life annuity. These two elements serve to establish the annuitant's life expectancy:
  
   
  • the older the individual, the shorter his or her life expectancy and the higher the payments, and vice-versa;
    
  • a woman's life expectancy exceeds that of a man;
    
     
• The options chosen by the annuitant at the time he or she purchases the annuity. The more options that apply to the annuity, the more impact these options will have on the amount of the payments.
   

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