Annuities enable you to receive a guaranteed life-long income once you leave the workforce.
You can use annuities to supplement other income options, such as RRSPs and increase your financial security in your later years.
You can buy an annuity with money from an RRSP, RRIF or other non-registered account. The money is then returned to you, with interest, in regular payments that you can choose to receive for a set number of years or for the rest of your life. You can also decide how often you would like to receive payments—monthly, quarterly, semi-annually or annually—depending on your specific situation.
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Types of annuities
1. Term-certain annuity
Term-certain annuities give you a guaranteed regular income for a set number of years (a term). If you purchase this type of annuity with money from an RRSP or RRIF, the term must extend to age 90. If you pass away before the term ends, the payments will go to your estate.
2. Life annuity
Life annuities give you a guaranteed income for life. Payments usually stop when you pass away and no money will go to your estate.
* Disclaimer: Insurance products are offered through Gulf and Fraser Insurance Services Ltd., a wholly-owned subsidiary of G&F Financial Group. This website is for informational purposes only and is not intended to provide specific insurance, financial, investment, tax, or other advice to you, and should not be acted or relied upon in that regard. Insurance products are underwritten by certain licensed insurance companies and are only available throughout British Columbia, Canada.