Responsible annuities

Turn your savings into regular, guaranteed income and help create a more sustainable world. Book an appointment with a financial security advisor to purchase a responsible annuity.

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What is an annuity?

An annuity is a long-term contract that provides you with regular income. Depending on the type you choose, you receive payments for a set period or until you die.

An annuity is ideal if you’re looking for security and stability, and to ensure you don’t run out of savings.

4 reasons to choose responsible annuities

Regular, guaranteed income

You know your payment amount and frequency, and your money is protected from market volatility.

Simple money management

Once you’ve purchased your annuity, we manage your portfolio for you.

Customized options for your needs

You can customize your annuity. For example, you can set it up to protect your loved ones after you die or keep up with increases in the cost of living.

Help create a more sustainable world

Our annuities include environmental, social and governance (ESG) criteria, and offer competitive rates.

Types of annuities

We have different types of annuities available to meet your needs.

Life annuity

Receive steady income for as long as you live.

Term-certain annuity

Get regular, guaranteed income for a set period. At the end of this period, your payments stop.

Advanced life deferred annuity (ALDA)

With an ALDA, you can postpone payments from your eligible registered savings plans (RRSP, RRIF and DPSP) until the end of the year you turn 85. This allows you to defer the taxes you pay on these plans and can get you other tax benefits.

Annuity for artists

If you’re an artist and your income varies from year to year, you can convert recent earnings into regular, guaranteed income for future years. You can reduce your tax burden by spreading your income this way.

How an annuity works

You purchase your annuity with a lump sum from your RRSP, RRIF, LIF, registered pension plan or non-registered savings plan.
The amount and frequency of your payments are then determined. They’re based on factors like your life expectancy, the duration of the annuity and interest rates.
You get payments over a set period or until you die, depending on the type of annuity you choose.

Responsible annuities, one of a kind in Canada

Desjardins is the first in Canada to offer responsible annuities—made possible by 30+ years of expertise in responsible investment. Using our responsible investment policy, we integrate environmental, social and governance (ESG) factors when selecting and managing investments. Our responsible annuities also get you competitive rates.

See our responsible investment products

FAQ

Annuity vs RRIF vs LIF: What is the difference?

An annuity converts your savings into regular, guaranteed income.

A RRIF acts as an extension of your RRSP. You choose the amount you withdraw from your RRIF each year, as long as it’s the minimum required amount based on your age.

A LIF is an extension of your LIRA or locked-in retirement savings plan (LRSP). You can set the amount and frequency of your LIF withdrawals, subject to the minimum and maximum based on your age and LIF’s jurisdiction.

You might be interested in combining an annuity with a RRIF or LIF. An annuity provides stable retirement income, while a RRIF or LIF allows you to manage your income. Contact us to discuss your finances and optimize your portfolio.

How are annuity payments calculated?

Annuity payments are based on the following 4 factors:

The amount of money you use to buy the annuity—the more you pay, the more you’ll receive.
The interest rate when you buy the annuity—the higher the rate, the higher the payments.
Your age when you buy it—the older you are, the more income you’ll receive.
The number of years you’re guaranteed to receive payments.

Can I withdraw money from my annuity if I need it?

No. Once you purchase your annuity, only the planned payments will be withdrawn. An annuity complements other investments—it’s meant to give you recurring, long-term cash flow.

Diversify your portfolio and include easily accessible investments like term savings for when you need funds.