An annuity is a contract purchased from an insurance company which provides guaranteed regular payments, which continue to be paid either for life or to age 90. There are several types of Registered Annuities.

Registered Annuities are purchased with money accumulated in registered plans such as RRSPs. The lump sum value of your registered plan is converted into an annuity before tax. Only the payments you actually receive are added to your taxable income.

• A life annuity guarantees an income you cannot outlive
• A joint life annuity provides guaranteed income throughout your and your spouse's lifetime
• A term certain annuity provides a guaranteed income up to age 90, or your spouse's age 90, if your spouse is younger
• A life annuity is the best option if you want total security throughout your lifetime
• There are no investment decisions to make
• Under a life annuity, you cannot alter payment amounts or terms of the annuity once payments have commenced