Why Annuities?

 Do you have enough money?         Could you run out of money? 

Could Annuity protect my assets should I or my spouse need nursing home care?

A 65-year-old male has a 50% chance of living to 85 – a female to age 88.   

 50% of couples aged 65 will have at least one spouse survive to age 92 and a 25% will reach age 97.

 Annuity   Types:

Term Certain Annuities – like a GIC but with level taxation. They are not life annuities.

Life Annuities – Income for life – you cannot outlive your income! There are several types:

               Single life Annuity

               Couples, Joint last to die Life Annuities

               Individual with an adult child joint annuity


               Registered Money in an RRSP – RRIF – LIRA – or LIF

              RRSP or LIRA no tax as long as you are not drawing money from it. 

              RRIF or LIF Annual Income is 100% taxable as it is withdrawn.

                Non Registered Money – you have two choices

             Accrual Taxation. Taxed on income as it is earned. A portion is also tax free as return of capital.

             Prescribed Taxation. These annuities are tax advantaged compared to most other investments.  Very low taxes.


Can I access my money after I buy a life annuity?  Yes. If you buy the correct Annuity from the correct provider. (I believe there are only two providers that have this feature – and it’s no extra cost)

 What Happens to my money when I die? You can choose a guaranteed period. For example if you choose 15 years (depending on age this could return all your money) any unused annuity payments left in that period would go to your heirs.

 What do you mean by tax advantages in a prescribed annuity? Most of the income is considered return of your capital. It is based on an age set by CRA so it depends on your age but it could run from getting 60% of your income tax free at age 60 to getting 100% tax free in your 80’s – Ask for a personal Illustration to know for sure.

Could Annuity protect my assets should I or my spouse need nursing home care? That depends on your retirement income. If that is over $80,000 a year – the life annuity probably won’t help much. However, anyone with less than $80,045 a year (the annual average cost in NB) may be able to use an annuity to protect some income for survivors. Call us for details (506)454-3346 or email [email protected]

Got Questions call 1-800-471-0411 or email [email protected]