Annuity Calculator Canada
Calculate your annuity payment amount or the lump sum needed to generate retirement income.
Annuity Calculator
Calculate annuity payments or required principal
Monthly Payment
$1,897.95
Total Paid Out
$455,508
Total Interest
$155,508
Balance Over Time
What is an Annuity?
An annuity is a contract where you pay a lump sum to an insurance company in exchange for regular payments — monthly, quarterly, or annually. Annuities are commonly used to guarantee retirement income that you can't outlive. In Canada, you can buy an annuity with RRSP, RRIF, or non-registered funds.
Types of Annuities in Canada
Life annuity: pays for your entire lifetime. Term certain annuity: pays for a fixed period. Joint and survivor annuity: continues payments to a spouse after your death. Life with a guaranteed period: guarantees minimum payments even if you die early.
Annuity vs. RRIF
When you retire, you can convert your RRSP to either an RRIF (Registered Retirement Income Fund) or an annuity. An RRIF gives you control over investments but exposes you to market risk and longevity risk. An annuity guarantees income for life but you give up control and flexibility.
| Feature | Annuity | RRIF |
|---|---|---|
| Income guarantee | For life | No — can run out |
| Investment risk | None | Yes |
| Flexibility | Low | High |
| Estate value | Usually nothing | Remaining balance |
| Government backstop | Assuris (up to $2,000/month) | CDIC (limited) |
Frequently Asked Questions
What is a good annuity rate in Canada?
Annuity payout rates vary with interest rates and your age. As of 2026, a 65-year-old investing $100,000 can get approximately $500–$600/month from a life annuity, depending on the insurer.
Are annuity payments taxable in Canada?
Yes. Annuity payments are fully taxable as income if funded with registered money (RRSP/RRIF). For non-registered annuities, only the interest portion is taxable (the return-of-capital portion is tax-free).
Can I cancel an annuity?
Most life annuities are irrevocable — once you purchase one, you cannot get your lump sum back. Some term annuities may allow cancellation with a surrender charge.