What is annuity?
Definition
Educational information only. Last reviewed August 25, 2026.
How it works in Canada
Life annuities transfer longevity risk to the insurer. In exchange, the capital is generally no longer accessible. Taxation depends on whether the funds are registered or non-registered; prescribed annuities can offer level taxation of the interest portion.
Example
A retiree may annuitize part of a RRIF to guarantee income covering essential expenses, keeping the remainder invested for flexibility.
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Written and reviewed by CanadaGFI.ca Editorial Team
Licensed insurance and financial professionals contributing to CanadaGFI.ca
Published and last reviewed August 25, 2026. Read our editorial policy and disclosures.
This page is educational information about Canadian financial concepts. It is not personalized financial, tax, insurance or legal advice, and it does not consider your individual circumstances. Product availability, eligibility, pricing and tax treatment depend on the provider, your situation and current Canadian rules. Speak with a professional licensed in your province before acting.
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