Who should invest in Income Annuities

Retirees or those nearing retirement could receive a steady stream of guaranteed income through an income annuity. You can choose to receive payments on a monthly, quarterly, semi-annual or annual basis for a set term or the rest of your life.

Put simply, it’s a way for Canadians to transform their retirement nest egg into a predictable stream of income that can support their spending in retirement. By doing so, an income annuity can help provide Canadians with certainty during their retirement years.


Putting a portion of your retirement savings into an income annuity can help you cover basic spending in retirement, such as housing, vehicle and food costs. If there’s an emergency and you need money, the cashable feature (available on some but not all income annuities) allows you to take out some or all of your guaranteed income payments up to the end of the guaranteed period.

Additionally, if you die before the guaranteed period ends, your beneficiary can either receive a lump sum payment or they can continue to receive your regular payments until the end of the guaranteed period.

Next Step

 Your decision should be made with the help of someone who really understands the product.