Rates

These rates are accurate as of June 2, 2017

The following table of rates may be useful as you consider converting your RRSP's to an income.

Please remember that rates are current at the time of posting to the site, but may change without notice.

Monthly incomes commencing one month from issue based on $100,000:

 

Life Annuity 10 Yr. Guarantee                                                        R.R.I.F.

Age Male Female Joint 1st Yr. Minimum Accelerated Payout Total Payout
60 461.66 426.16 390.04 139.00 5 yrs $1,782 $106,920
70 581.66 533.65 474.78 167.00 10 yrs $917 $110,040
80 756.57 710.90 647.11 198.00 15 yrs $640 $115,200

 

GICs

.90 2.25 2.45 2.50 2.55 2.70 1.95
Daily 1 yr 2 yr 3 yr 4 yr 5 yr 10 yr

 

As an alternative to increasing your non-registered capital in GIC's or bonds, you may consider the "Insured Annuity" which may dramatically increase your after-tax cash flow as indicated below:

Insured Annuity

Income Based on $100,000, male or female age 70:

GIC at 2.70%                                 Life Annuity

Male                         Female

Gross Income $ 2,700.00

$ 6,988.26

$ 6,189.16
Taxable Income $ 2,700.00 $ 641.49 $ 640.20
Tax (payable at 37.7%) $ 1,017.90 $ 241.84 $ 296.56
Net Income $ 1,682.10 $ 6,746.42 $ 5,892.60
Insurance Cost $ 0.00 $ 4,138.00 $ 3,320.00
After Tax Rate of Return 1.68% 2.61% 2.57%
Spendable Income $ 1,682.10 $ 2,608.42

$ 2,572.60

GIC Equivalent %   4.19% 4.13%

Source:  Cannex.  Rates subject to change without notice.