You must convert your RRSP into an annuity no later than December 31 of the year you turn 71.

Your savings, registered or not, become regular income

  • Interest rate: current rate at the time annuity is taken out
  • Index option: income payment amounts can be adjusted annually

Savers who want guaranteed regular income for a set period of time or until death. You can use all or part of your RRSP or non-RRSP savings to buy an annuity without having to worry about managing your investments.

2 types of annuities available

  • Life annuity or term certain annuity
  • To learn more, see frequently asked questions about annuities (FAQ).
  • An annuity can be combined with a RRIF or LIF. The RRIF or LIF portion ensures investment income flexibility; the annuity portion ensures retirement income stability.

See RRIF investment options

See LIF investment options

Income taxation

Taxes can be spread out over several years

Interest rate

Fixed for the duration of the annuity, regardless of future rate fluctuations


  • Exact annuity amount is set at time of purchase and income is protected from potential interest rate reductions
  • Income amounts can be adjusted annually by indexing your periodic payments

See Manage your retirement income