What is a deferred annuity?
Deferred annuities can be a reliable and secure savings option that gives you the opportunity to build your investment over time.
If you’re a conservative investor with a need for guaranteed investment growth, a deferred annuity may be a good foundation for your retirement fund and also a convenient way to save for other long-term goals.
Deferred annuities earn a guaranteed interest rate over a specified investment term, and the annuity value is guaranteed to never be lower than the amount you have contributed.
The Annuity Plus1
deferred annuity can help you plan for financial security during your retirement years. The accumulated value in your Annuity Plus certificate will grow as you make deposits and as interest is credited at a pre-determined rate. And you can customize it to suit your needs.
You can start your Annuity Plus deferred annuity with monthly contributions of as little as $50 or you can make a lump sum deposit (minimum applies) and then make regular payments (weekly, monthly, or annually).
You can choose a Daily Interest Account (DIA) and six different Guaranteed Interest Accounts (GIA terms of 1, 2, 3, 4, 5 or 10 years). An Annuity Plus deferred annuity can have multiple guaranteed interest accounts within the same certificate. Your deferred annuity can be part of your Registered Retirement Savings Plan (RRSP) so that your contributions are tax-deductible in the year of the contribution.2
When you retire, your registered deferred annuity will typically be converted to a Registered Retirement Income Fund (RRIF), or to an immediate annuity to begin a reliable income stream. You can structure non-registered deferred annuities so they generate a payout at any time, up to the maturity date you select.