Because of this, guaranteed-for-life income solutions are becoming a vital investment component for many Canadians.
Within the available choices of guaranteed-income solutions, prescribed annuities provide much higher annual take-home income than you'll get from other typical guaranteed savings choices due to both their structure and the overlay of significant tax benefits. For example*:
A 60 year old in the 40% tax bracket using $100,000 in savings to provide income for life :
Scenario 1: 2% GIC is purchased
Prescribed annuities provide the benefits of higher incomes and low taxable amounts. This often a win-win-win for people looking for higher incomes, lower income taxes and getting the most from their income tested government pension plans.
- How do prescribed annuities or other guaranteed-for-life income options work?
- How is prescribed annuity income guaranteed and for how long?
- What is the value of my prescribed annuities to my estate, spouse and other beneficiaries when I die?
- Are annuities suitable for me? Would they be suitable for my dependants?
- Are there guaranteed for life income annuities that allow me to access my capital just in case I need it?
- Should I get prescribed annuities now to avoid tax increases coming in 2017?