RRSP Centre

• Self-Directed RRSP
• Deduction Limit
• Spousal RRSP
• Investment Options
• Investment Strategies
• RRSP Loans
• How Much Will I Need to Save?
• RRSP Maturity Options
• Annuities
• RRIFs
• Self-Directed RRIF
• How Much Income Will I Need?
• How Long Will My RRIF Last?
• Naming a Beneficiary
• Retirement Planning for Small Business Owners

RRSP Centre

Annuities
A life annuity is an insurance contract, purchased with a single lump sum payment, which will provide you with a guaranteed income for the rest of your life. Income payments are comprised of interest and principal and are based on your age, guarantee period, current interest rates and the amount of money used to purchase the annuity.

There are three types of annuities available for registered annuities:

Single Life
Provides you a guaranteed income for life

• You may also purchase an annuity with guarantee periods ranging from 5 to 20 years where the payments are guaranteed for the latter of the guaranteed period or your lifetime. If death occurs during the guaranteed period, the balance of the payments will be paid to your beneficiary.

Joint Life
Provides guaranteed income for life for you and your spouse

• Similar to a single life, you can select a guarantee period and payments are guaranteed for the latter of the guaranteed period or life for you and your spouse. If both die during the guaranteed period, the remaining payments will be paid to your beneficiary.
• You also have the option of continuing full payments to the surviving spouse or selecting a reduced payout on the first death.

Term Certain
Provides you with income payments for life but will not extend beyond age 90.

• Number of payments may also be based on your spouse's age, if younger, whereby payments would continue until your spouse attains age 90.

For more information, contact an Investment Advisor at a BMO Nesbitt Burns branch near you who will be pleased to introduce you to an Estate and Insurance Advisor.

If you would like a BMO Nesbitt Burns Investment Advisor to contact you, simply complete this brief contact form.

Note: Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.