Annuity Rates
Find the Best Annuity Rates in Canada
Create A Guaranteed Lifetime Income Stream for Retirement.
Annuities are great way to create lifetime, fixed retirement income. Your annuity rates & income are guaranteed for life.
9 Tips For Finding the Best Annuity Rates in Canada
Look at different companies
Don't go directly to an insurance company. Certain companies have different features you may miss out on by sticking with one company. Shop around!
Consider your income objectives
Are you trying to solve a particular problem related to income in retirement. How much can you comfortably put away to solve this problem?
Don't put all your money in an annuity
An annuity isn't perfect but meant to help retirees avoid running out of money. Assigning a portion of your RRSP for example helps solve the problem.
Consult with an annuity broker
Blue Alpha Wealth is a licensed annuity broker and can help you determine which annuity is best for you and which company features apply to your situation.
Understand the contract terms
Make sure to understand the terms and conditions of your contract. Most contracts typically have a 10-day free look period whereby you can cancel if you have buyers remorse.
Annuity isn't an investment
An annuity isn't like equities or GICs. An annuity is not an investment subject to fluctuations but a promise from the insurance company to pay guaranteed income.
Understand surrender fees
Things can change in the future even though you felt an annuity was a good idea, and you need access to funds. Understand your obligations and penalties.
Diversify annuity companies
Buying annuities from 2 or 3 different companies is a great way to diversify and take advantage of different features each company provides.
Understand taxation of annuities
When buying annuities in different investment accounts in Canada, both registered and non-registered annuities are subject to taxation, but they are taxed differently.
Current Annuity Rates in Canada
As a Blue Alpha Wealth client you can rest assured knowing that you're able to compare all available insurance companies and get the highest payout for your deposit. Companies we work with include Canada Life, Sun Life, RBC, BMO, Desjardins, Equitable Life, Empire Life and more.
Manulife has recently gotten back into the annuity market since 2023
Current Updated Lifetime Annuity Rates for 2025
Annuity Rates for MALE - RRSP/RRIF - Per $100,000 Deposit
*Previous MONTHLY Rate in Brackets*
Age 50 - $453.99 ($444.30)
Age 55 - $488.80 ($477.57)
Age 60 - $527.32 ($521.39)
Age 65 - $574.44 ($571.15)
Age 70 - $640.56 ($641.38)
Age 75 - $707.44 ($714.46)
Age 80 - $807.34 ($813.93)
Annuity Rates for FEMALE - RRSP/RRIF - $100,000 Deposit
Age 50 - $439.41 ($428.40)
Age 55 - $472.22 ($455.99)
Age 60 - $501.21 ($492.00)
Age 65 - $542.51 ($537.81)
Age 70 - $597.13 ($594.45)
Age 75 - $662.12 ($663.85)
Age 80 - $757.53 ($765.56)
***These rates are based on a single life with payments made to you for life with a 10 year guarantee 0% indexing.
Annuity Rates - What Is An Annuity?
When it comes to getting the best annuity rates, there is no one size fits all solution. A lot depends on how much guaranteed income you are looking for, when you need it and how much you want to put towards the annuity contract. Depending on your retirement income needs and situation, you may need 20% or maybe 40% of your retirement nest-egg to give you the income you need.
You may need a short term solution like income for 10 years or lifetime coverage. Regardless, your annuity rates all depend on the nature of your situation and need for retirement income.
The Basics
The best way to understand annuities is to think of them as the opposite of life insurance. While life insurance is meant to protect or insure your family in the event of your premature death, an annuity is meant to protect you or insure your retirement in the event you live too long. Simply put, you buy life insurance because you will die too soon and you buy annuities because you worry about running out of money due to long life.
Annuity is like a pension
Similar to coveted public pension plans that provide iron-clad guarantees, annuities provide individuals with a regular stream of income for life. Unlike GICs, the amount you receive is not dependent on interest rates and unlike equities, there is no worry of volatility in prices. While a rise in stock market prices protects against inflation better than GICs and interest rates, annuities also provide protection against inflation through indexing. The nice thing about buying an annuity is that it's a one-time purchase giving you a lifetime of guaranteed payments. You also won't have to worry about fluctuating GIC rates for example.

How to Use An Annuity for Retirement
Determine Your Retirement Income Shortfall Before Getting Annuity Rates
By way of example, assume you determine that you require $70,000 in annual income to support your whole retirement. The example below gives you a high-level guide on how to calculate what you will need in terms of annuity amount and the rates to cover in terms of shortfall so you don't run out of money. Follow these steps:
- Calculate what you'll get from CPP/OAS and employer pensions.
- Determine if there is a shortfall to cover your basic expenses based on what your retirement number is i.e. $70,000 minus shortfall (if there is one)
- Use a portion of your nest-egg to buy some form of guaranteed income for the amount of shortfall for guaranteed income.
- We focus on guaranteed income for basic expenses because these are expenses like housing, food, healthcare etc. that will last you whole retirement. Your other "discretionary expenses" like travel etc. are optional and not for your whole retirement.
- In our example below the shortfall is $17,000. So you'd need to purchase an annuity for $17,000 to make sure you cover your $50,000 required yearly for basic expenses. The $20,000 is variable which is used for optional discretionary expenses in retirement like travel and hobbies.
Taxation of Annuities
Annuity Rates and Taxes
When buying annuities in different investment accounts in Canada, both registered and non-registered annuities are subject to taxation, but they are taxed differently.
The income you receive from a registered (RRSP, TFSA, LIRA) annuity is 100% taxable to the policyholder in the year that it is received. On the other hand, only a portion of the income received from a non-registered annuity is taxable to the policyholder. The income received from a non-registered annuity can have prescribed or non-prescribed (accrual) tax treatment.
In Canada withholding tax is compulsory for annuities purchased with Life Income Fund (LIF), Deferred Profit Sharing Plan (DPSP) and Registered Pension Plan (RPP)premiums. It doesn't matter if the account is locked-in or not locked-in. For non-resident Canadians, the applicable withholding tax rate is deducted for any annuity contract that has been bought.
Registered Annuity
For annuities that are purchased with Registered or Pension funds, the income you receive from the annuity is 100% taxable in the year that you receive it.
Non-Prescribed Annuity
Payments from a non-prescribed annuity are a mix of interest and capital. The interest element is taxed as it accrues; therefore the taxation will be higher in the early years of the annuity and decrease over the life of the contract as the capital is paid out.
Prescribed Annuity
The annuity payments you receive from a prescribed annuity are shown as a level mix of interest and capital you invested. The interest portion is taxed on a level basis spread out over the life of the annuity contract.
To qualify for prescribed taxation when these conditions must be met:
- Annuity must be in a non-registered account
- Annuity payments cannot be indexed
- If it's a life annuity, the annuitant, owner and payee must be the same person
- You cannot purchase the annuity as a corporation but as a person
- For Term Certain Annuities, the owner and payee must be the same person
- Annuity may be a Single Life, Joint and Survivor Life or Term Certain Annuity
- You must start taking payments no later than December 31 of the year after you purchase the annuity
Request Annuity Quote
Get An Annuity Quote
Avoid Living a "Just-In-Case" Retirement
Are you worried about running out of money and keeping money in a bank account just in case you run out of money or perhaps you need money for medical expenses? Just in case you don't have enough to leave an inheritance to your loved ones, are you not living the retirement you always dreamed of and wanted? Annuities are a great way to take away the anxiety of living a just-in-case retirement. We can help you find the best annuity rates to suit your lifestyle and income needs.
The happiest people in retirement are those who have some kind of pension-like income.
10 FAQ About Annuities & Rates in Canada
When looking into annuity rates and the appropriate annuity contract to buy as part of your retirement planning, there are a few questions and considerations to keep in mind.
When is the best time to buy an annuity?
In short, anytime you need guaranteed income. However, when it comes to retirement, any time you worry about running out of money and living long to outlive your retirement income and need some lifetime income.
How does an annuity work?
You choose how much income you need, you give an insurance company a deposit amount based on the time and income you need, and they pay you that guaranteed amount risk-free.
Who is the annuity contract made out with?
An annuity is a contract between you and a life insurance company. Life insurance companies are highly rated and secure to guarantee payment of your income amount.
How are life insurance companies able to guarantee paying?
Life insurance companies use what are called 'mortality credits'. In a pool of 5 people with annuities, over time some may pass away and those who live longer benefit i.e. mortality credit
What happens to my money if I pass away?
If you have a joint annuity contract the income continues to the spouse. A single annuity contract can go to named beneficiaries as well as after second spouse dies. Best is to plan for this.
What amount should I use to buy an annuity?
In general, you want to assign a portion of your nest-egg towards an annuity. However, it also depends on how much guaranteed income you need. Another way is an amount to cover your fixed basic expenses in retirement not covered by CPP or OAS payments.
How are my annuity rates calculated?
Life insurance companies use your age, the amount of income you need, how long you need income, your gender and other mortality actuarial factors to calculate your annuity rates.
Is my annuity covered by deposit insurance like GICs?
The life insurance company that issues your annuity is covered by Assuris for up to $5,000 monthly or 85%of the promised monthly benefit depending on which one is higher.
What to do if I need more than $5,000 a month in annuity income?
Similar to how you would buy GICs, you can spread your income with different life insurance companies to meet your income goals whilst protecting yourself against life insurance company default.
Who should I buy an annuity from?
A licensed annuity broker can get you the best and most current annuity rates in Canada to suit your needs. We recommend you buy from Blue Alpha Wealth! Call us at (416)966-0606.