When you retire, you and your spouse will need to have a guaranteed income for the rest of your lives. Again made life annuities are a popular retirement income choice They are being talked about as they never expire.
Why buy a life annuity?
A life annuity provides a guaranteed income for you and your partner forever.
Life Annuities are purchased with registered and non-registered funds
Registered Fund sources are:
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Fund (RRIF)
- Registered Pension Plan (RPP)
- Locked-in RSP (LRSP),
- Locked-in Retirement Account (LIRA),
- Deferred Profit Sharing Plan (DPSP)
- Locked-in Retirement Income Fund (LRIF).
An annuity with non-registered funds can be on a “prescribed” or “non-prescribed” taxation basis.