You pay an up-front commission or sales charge when you buy an annuity. The commission can be up to 3% of the lump sum you're depositing.
Other fees and costs, such as administrative charges and the costs of options, are factored into the calculation of your annuity payments. You won't see these costs broken out anywhere.
If you're buying an annuity at the same financial institution where you have your RRSP, ask them if they'll waive the sales commission on the annuity.
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