Most people don’t think about buying an annuity until they go through a big life change − for example, when they retire, or lose a loved one. If you are looking for ways to get a more secure income, an annuity may be right for you.
Where can I buy an annuity?
- Life insurance firms
- Banks or trust companies
- Brokerage firms.
Only life insurance firms can sell you an annuity that will cover you for life. You can also buy any type of annuity through an annuity broker. A broker shops around for the best deal for you from different companies.
Tip: The financial institution where you have your Registered Retirement Savings Plan (RRSP) will often convert your plan to an annuity without charging you any commission. If you decide to go somewhere else, you can expect to pay a fairly big commission. Keep this added cost in mind as you shop around.
Remember: You buy an annuity to get income over many years.
Make sure you choose a company that you know will be there for the long term.
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.