Senior couple taking selfie together on a mountain top

YOUR INFORMATION:

 
Years old
 
Select a gender

ANNUITY PREMIUM AMOUNT:

From investments that are Registered Investments help  

Estimated marginal tax rate in retirement:

cash and coins
Your estimated annual annuity income
will be:
$7,000 before tax
$5,140.22 after tax

You can customize your annuity to meet your needs. You can set the guarantee period, index the income to help it keep pace with inflation or include your spouse in a joint plan.

To see what your guaranteed annuity income could look like with the features you need, review your results with an advisor

COMPARE YOUR AFTER-TAX INCOME OPTIONS:

Your annual after-tax income results
 
 
See how the annual after-tax income from an annuity compares to the income from a GIC or a RRIF.
Investments are:
Compare annuity to
Assumed interest rate:
%
Life annuity: An insurance contract that guarantees you’ll receive income payments for life, however long you live. Once you’ve bought your annuity, you never have to worry about how that money is invested or how long your income will last.
GIC: One of the safest and simplest investments you can make. Basically, you deposit money and, in addition to your principal, you receive a guaranteed amount of interest for a guaranteed period of time.
RRIF: An excellent choice for people who want to take money out of their registered savings on a regular basis for the purposes of retirement income. You control your investments and income (subject to RRIF minimum withdrawals), while deferring taxes as much as possible. And RRIF assets can be passed directly to your spouse on your death, without being taxed.

YOUR NEXT STEPS:

How annuities work

Find out how an annuity can give you a guaranteed income for life.

Learn more about annuities

The best strategy for you

Other helpful retirement planning resources to consider:

Simply put: What are payout annuities? (Video)
Life expectancy calculator

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An annuity is just one piece of your complete retirement income picture. For help fitting the pieces together, review your results with an advisor

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TALK TO AN ADVISOR ABOUT THE BEST WAYS TO TURN YOUR RETIREMENT SAVINGS INTO INCOME

An advisor can help you weigh your options and choose the strategy that will work best for you. There's no cost to talk to an advisor.

Annuity calculator February 28, 2017
 

Your estimated annual annuity income will be: $7,000 before tax and $5,140.22 after tax.

You can customize your annuity to meet your needs. You can set the guarantee period, index the income to help it keep pace with inflation or include your spouse in a joint plan.

To see what your guaranteed annuity income could look like with the features you need, review your results with an advisor

YOUR INFORMATION:

Age when you plan to buy an annuity: 50

Premium amount: $100,000

From investments that are: Registered

Gender: Female

Your expected tax rate in retirement will be: 35.00%

COMPARE YOUR ANNUITY INCOME:

Annual before-tax income: $3,891.06

Annual after-tax income: $4,420.69

COMPARISON - GRAPH VIEW:

At 6% interest, the RRIF's after-tax income will be able to match the annuity up to age 100 — but only the annuity income is guaranteed for life.

At 6% interest, the RRIF will be able to match the annuity to past age 100 — but only the annuity income is guaranteed for life.

The average life expectancy for someone the age and gender shown is 89-92 years.

In this example, the RRIF income exceeds the annuity income for a period of time because of the mandatory minimum withdrawals.

Life annuity after-tax income
Average life expectancy
RRIF after-tax withdrawal
1 in 4 Canadians lives to this age
COMPARISON - TABLE VIEW:
AGE CUMULATIVE ANNUITY PRE-TAX INCOME ANNUITY PRE-TAX INCOME ANNUITY AFTER-TAX INCOME CUMULATIVE RRIF PRE-TAX INCOME RRIF PRE-TAX INCOME RRIF AFTER-TAX INCOME
55 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
EXPLORE DIFFERENT RETIREMENT INCOME OPTIONS:

Don't know much about your different retirement income options? Don’t worry: Let us help you find out more.

Life annuity: An insurance contract that guarantees you’ll receive income payments for life, however long you live. Once you’ve bought your annuity, you never have to worry about how that money is invested or how long your income will last.

GIC: One of the safest and simplest investments you can make. Basically, you deposit money and, in addition to your principal, you receive a guaranteed amount of interest for a guaranteed period of time.

RRIF: An excellent choice for people who want to take money out of their registered savings on a regular basis for the purposes of retirement income. You control your investments and income (subject to RRIF minimum withdrawals), while deferring taxes as much as possible. And RRIF assets can be passed directly to your spouse on your death, without being taxed.

Assumptions: