Annuities

An annuity is the simplest retirement income option. In exchange for a sum of money, an annuity provides you with a stream of payments.

The income payments you receive are made up of interest and principal and are determined based on:

Your age (and in certain cases, your spouse's age), for life annuities
Current interest rates
The length of time the payments are guaranteed
The amount of money used to purchase the annuity

A Steady Stream of Payments to You
Select the life income option and you will enjoy a steady retirement income from your pension funds along with the security that you will never outlive your money. And since the life insurance company is managing your money, you won't have to worry about market fluctuations or other investment management decisions. You can relax while they do the work. Your income payments are guaranteed regardless of the ongoing economic conditions. 

Tax Treatment
Your annuity payments will be taxed as income in the year that they are received, for registered funds. For non-registered funds, only a portion of each payment is taxed each year.

Life Annuities
A life annuity provides you with income payments for as long as you live.

Joint and Last Survivor Annuities
A joint life and last survivor annuity provides income payments as long as either you or your spouse is living.

Annuity Certain
An annuity certain provides you with a pre-determined number of income payments.