Annuity Certain
On your death, an annuity certain continues income payments until the end of the guarantee period.
An annuity certain guarantees, and pays out, a set number of income payments. For annuities funded by RRSPs or RRIFs, the number of payments is equal to 90, less your age in whole years at the purchase date. If you die before reaching age 90, the balance will be paid to your beneficiary, or if there is no designated beneficiary, then to the estate.
You can also have the option of basing the number of income payments on your spouse's age. The payments would continue until your spouse is 90.
For non-registered funds the number of income payments can extend beyond the age of 90.
An annuity certain may not be purchased with funds accumulated under a registered pension plan. If funds from a DPSP are used, the maximum guarantee period is limited to 10 years.
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