Retirement solutions
Annuities are a contract
sold by life insurers that
pay a guaranteed regular
income in exchange for
upfront contributions.
These products protect
individuals from outliving
their savings and are
often used to provide
retirement income.
Related products:
Accumulation
annuities, like life
annuities and term
certain annuities;
pay-out annuities; and
segregated funds.
Sold as: Sixty-six per cent
of annuities is purchased
through a group plan.
Life and health insurers manage retirement
savings for over 8 million Canadians
Over eighty-five per cent of small businesses that provide pensions,
RRSPs, TFSAs, and RRIFs to their employees offer these through life
and health insurers.
Benefits of owning annuities
Annuities aren't like other retirement income products. Here's what
they offer that's different:
Lifetime income benefits reduce
the risk of outliving your savings
Pension plan de-risking by
transferring the investment
risks of defined benefit plans to
insurers to manage
Maturity guarantees mitigate
the risk of volatile investment
returns
Sources of annuity
contributions
$
62.1B
2021 annuity
contributions
34%
66%
17
Canadian Life & Health Insurance Facts // 2022 Edition
Group plans
Individual policies
2021 annuity contributions
