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Benefits of Payout Annuities

You’ve worked hard and saved hard so you can have a comfortable retirement. Choose RBC® Payout Annuities for the financial security you need.

Guarantee Your Retirement Income

Depending on the Payout Annuity you choose, you can receive guaranteed income for life (for just yourself, or for both you and your spouse) or for just a specific time period.

Your payments are locked in the moment you purchase a Payout Annuity. You don’t have to worry about what the market does or where interest rates go. Your income is guaranteed.

Minimize Your Taxes

When purchased with non-registered funds, the interest portion of your monthly payment is spread out evenly over the Payout Annuity’s life.1 This levels out your tax payments and minimizes the taxes you pay.

Provide Security to Loved Ones

You have the option to continue your payments to your spouse or beneficiary if you pass away during a certain time period.

Any death benefits from your annuity that are made to your beneficiaries do not have to go through probate, a lengthy process by which a court formally approves a Will. This means:

  • Your loved ones receive the money faster
  • Your estate remains private
  • More money is passed along

Enjoy an Easy Investment

Once you purchase a Payout Annuity, your payments are locked in. You’ll never have to adjust it or make any investment decisions for it.

RBC Payout Annuities can be purchased with funds from non-registered plans or registered plans—for example: a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), or other registered plans.

Types of Payout Annuities

Find the annuity that’s right for you:

A single life annuity offers guaranteed income for the life of one person, regardless of what’s going on with markets or interest rates.

It’s the right choice if you are:

  • Worried a market slump might cut into your savings
  • Thinking you will outlive your income

A joint life annuity offers guaranteed income for the lives of two people. When the first person passes away, payments continue for the life of the surviving person.

It’s the right choice if you are:

  • Wondering how to provide for both yourself and your spouse

A term certain annuity offers guaranteed income for a set period of time, or until you reach a certain age.

It’s the right choice if you are:

  • Planning to retire early and need income until your pension kicks in

Customize Your Payout Annuity

Choose from optional features for additional protection:

If you (or you and your spouse) pass away before the end of the guarantee period, remaining payments will be paid to your beneficiary—either through regular payments or as a lump sum. Our guarantee periods range from 1 to 25 years. This may be the right choice if you are concerned about passing away after receiving just a few payments.

Your entire premium deposit will be refunded to your beneficiary if you (or you and your spouse) pass away before you receive your first Payout Annuity payment.

The information within this site is not intended to provide tax advice. You should seek independent tax advice from a tax professional or advisor.

1)

Only applies to Payout Annuities purchased with non-registered funds.