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Your Guide to the Best Annuity Products for Canadians


The primary reason why the majority of humankind work is to save for retirement. You need to generate a steady stream of predictable income when you stop working and lead a comfortable retired life. The rising levels of inflation coupled with a higher lifespan make this financial goal all the more important, especially if you are not eligible to receive a pension.

One option is to park your retirement fund into treasury yields and benefit from regular interest payments. However, interest rates fluctuate and are currently near record lows which means it’s impossible to beat inflation and you will lose purchasing power over time.

The other option is to invest in the stock market where dividend-paying companies will help you generate an alternate income stream. But, retirees are advised to have minimal exposure to equity markets given the massive fluctuations over the short term. Further, dividend payments are not a guarantee and the payouts can be suspended at any time.

Another financial instrument that is gaining popularity among retirees is annuities. This instrument is basically a contract with a financial institution such as a life insurance company. Annuities guarantee a fixed income stream where retirees or investors can make periodic or lump-sum payments to fund this instrument.

Once the capital is deposited, the financial institution will pay you a guaranteed income for the rest of your life. So, if you purchase an annuity, you know the exact amount that will be deposited in your bank account each month.

Annuities can be purchased by one-time lumpsum payment or in installments. The buyer of an annuity can get more money in return than they invest due to interest and transfer of capital from other annuity holders. 

It is important to be careful when choosing an annuity provider. Hence, we have brought you a short guide to the best annuity products in Canada. 

Annuities by iA Financial Group 

The iA Financial Group was founded in 1892 and is one of the oldest financial services companies operating in Canada. iA Financial Group provides a wide range of services such as life and health insurance, mortgage loans, auto insurance, mutual funds, as well as annuities. 

The iA Financial Group’s Guaranteed Income plan offers annuities for retirees. Under this plan, you can make a lump-sum investment in return for guaranteed monthly payments. You can choose from two plans – one plan provides regular monthly income for a predetermined period of time while the other provides regular monthly income for as long as you live. 

Income annuities by Canada Life 

The Canada Life Assurance Company, popularly called Canada Life, is a Canadian insurance and financial services company with headquarters in Winnipeg. It was founded in 1847 and currently has a vast presence across the country. 

Canada Life guarantees that you will receive an income by conservatively investing your money. It offers a number of choices for those looking to take out an annuity. You can choose to get an annuity as an individual or as a couple, You can also choose whether you want monthly payments for a fixed number of years or until you pass on. Further, you can choose to get payments every month, every quarter, or annually. 

Annuity products by SunLife Financial 

SunLife Financial is a Canadian insurance and financial services company that was founded in 1865. The company has its headquarters in Toronto, Canada. It is one of the largest life insurance companies in the world. Even though they primarily specialize in life insurance, they also provide a range of other financial services such as annuities. 

SunLife Financial offers two primary types of annuities. Life Annuity provides you a guaranteed income until you die. In contrast, Term Certain Annuity provides a guaranteed income for a certain predetermined number of years. In case you pass on before the expiry of such period, your beneficiary will receive the payments. 

The Bullish takeaway 

Annuities are a great way to make your retirement financially secure. You should consult an annuities advisor to ensure that you find the most suitable annuity product for you. 

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