Guaranteed Lifetime Income Annuity

Select your age range

What's Guaranteed Lifetime Income?
1
  • A new offering that reduces risk to your retirement savings

    Choices for Buying an Annuity and Receiving IncomeMost Canadians are living longer and the worry of outliving their retirement income is real and increasing. When surveyed, 82% of OMA members said they needed help converting part of their retirement savings into regular, predictable income in retirement.

     

    The Advantages Retirement Plan™ is now offering the option of purchasing a unique insurance-based savings solution that helps protect from the risk of outliving income. We call this the Guaranteed Lifetime Income Annuity.

     

    The Guaranteed Lifetime Income Annuity is an insurance product underwritten by Brookfield Annuity Company, a Canadian life insurance company licenced federally and in all Canadian provinces and territories. Learn more about Brookfield Annuity Company in the FAQ.

     

    The Guaranteed Lifetime Income Annuity guarantees to pay a monthly income benefit for life starting as early as age 60.  You can determine what will help you meet your retirement income needs based on the following*:

    • how much you want to buy,
    • when you want to buy,
    • how much income you want to receive,
    • when you want to start receiving your income.

     

    *Subject to the terms of the annuity policy

     

    As the Guaranteed Lifetime Income Annuity is offered through the Advantages Retirement Plan™, it is bought with funds held in your registered plan1 (with pre-tax dollars) and benefits are also paid into your registered plan. When money is withdrawn from your RRSP or RRIF it is taxed.

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.


    1 RRSP or RRIF, as applicable.

Who is it for?
2
  • Uniquely designed for doctors

    The Guaranteed Lifetime Income Annuity is designed for OMA members and their spouses/partners who would like to introduce some security in their retirement savings. It gives you control and peace of mind so that regardless of how other components of your retirement savings are performing, you will receive a level of guaranteed income paid into your registered plan from the Guaranteed Lifetime Income Annuity for your lifetime.  This product complements the income you receive from the Canada Pension Plan and potentially Old Age Security benefits, as well as any other retirement savings.

     

    Once you become a member of the Advantages Retirement Plan™ you are able to purchase the Guaranteed Lifetime Income Annuity with your registered plan assets any time after age 50 right up until age 70 years and 10 months.

     

    Timeline for Purchasing the Guaranteed Lifetime Income Annuity

     

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.

How does it work?
3
  • Putting doctors in control

    Under the Advantages Retirement Plan™ you are responsible for investing in your account. Only you know how much income you need to retire the way you want to, but there are tools on the Advantages Retirement Plan™ portal to help.

     

    The Advantages Retirement Plan™ online modeler helps you manage your choices within the Advantages Retirement Plan™. It can help you determine the right mix between TDF and the Guaranteed Lifetime Income Annuity investments in your RRSP. The modeler also estimates your Canada Pension Plan and Old Age Security benefits.

     

    Flexibility for Purchasing Annuities & Receiving Income

  • Flexible contribution terms to fit any situation

    With the Advantages Retirement Plan™, there are a few ways you can contribute.

     

    These same options apply to your purchase of a Guaranteed Lifetime Income Annuity with the funds you have contributed to the Advantages Retirement Plan™:

    • one or more lump-sum purchases
    • monthly purchases – the Guaranteed Lifetime Income Annuity allows you to purchase future income on a monthly basis

     

    There are no hard and fast rules about how much of your Advantages Retirement Plan™ account you should allocate to purchase an annuity. It depends in part on the level of income security you want and the needs you will have in retirement. Working with the Advantages Retirement Plan™ retirement online modeler, can help you determine what is the right balance between your TDF investments and Guaranteed Lifetime Income Annuity investment.

     

    The modeler can illustrate for you how much income your Guarantee Lifetime Income Annuity purchases may generate once you start drawing payments. It takes into account multiple factors including your age, sex, the amount you buy, prevailing interest rates and the payment features of your Guaranteed Lifetime Income Annuity when you choose to start receiving income.

  • A way to balance volatility and certainty in your retirement

    Retirement income typically is drawn from three main sources:

    • Your non-registered investments and other business or personal assets. Financial investments that you have made outside of your RRSP and TFSA as well as your house, your cottage or your professional corporation and your practice.
    • Income generated from market-based investments held in your RRSP or RRIF. It can account for a meaningful portion of your retirement income. These savings have important tax advantages and potential upside, but depending on what you have invested in, may be subject to market volatility and therefore not completely predictable when making your retirement income calculations;
    • Guaranteed income, which includes Canada Pension Plan, in some circumstances Old Age Security and annuity income like the Guaranteed Lifetime Income Annuity. This income is fully guaranteed in the case of Canada Pension Plan and Old Age Security by the Government of Canada.  In the case of the Guaranteed Lifetime Income Annuity, which is held in your registered plan, it is guaranteed by Brookfield Annuity Company.

     

    The Guaranteed Lifetime Income Annuity Cannot Be Cashed OutWith a Guaranteed Lifetime Income Annuity you can increase the proportion of your retirement income that comes from guaranteed sources. This ultimately reduces your dependence on retirement income that comes from other sources which may be exposed to market volatility.  It is, however, important to note that once you purchase a Guaranteed Lifetime Income Annuity it cannot be cashed out.  It is only available to provide a monthly benefit starting as early as age 60.

     

    We recommend that you seek independent advice regarding your overall financial planning and how the Guaranteed Lifetime Income Annuity fits into your plan.

     

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.

The plan in action
4
  • Guaranteed Lifetime Income Annuity Enrollment Video

  • Scenario 1 - When you live longer, Guaranteed Lifetime Income Annuity delivers exceptional value

    Because of the features of the Guaranteed Lifetime Income Annuity, which is a form of life insurance, you are guaranteed to receive monthly income payments for as long as you live.

     

    Here is an example:
    A physician is 50 years old and decides to allocate $30,000 of their RRSP account to purchase a Guaranteed Lifetime Income Annuity. Based on the rate table at the time, the premium is paid and considering the physician’s age and sex, the $30,000 premium buys an annual annuity income of $3,600 or a monthly annuity income of $300 per month payable into their registered plan.

     

    When the physician turns 71, a $300 per month payment commences and thanks to their good health they live another 20 years until they pass away at age 91. In total, the physician has received $72,000 in benefits paid into their registered plan for a contribution of only $30,000.

     

    Exceptional Value Living Longer

  • Scenario 2 - Protecting your contributions from premature death

    The Guaranteed Lifetime Income Annuity offers different ways to protect your premiums should you pass away before you receive the full benefit of your contributions. The basic form Guaranteed Lifetime Income Annuity has a guarantee period of 10 years that starts from the date of your first monthly income payment. Should you pass away before the end of the guarantee period, your registered plan will receive a lump sum payment for the balance of the unpaid guaranteed income.  You have the option to choose a 15 year guarantee period rather than the 10 year guarantee if you want longer protection.

     

    Here is an example:
    While a member of the Advantages Retirement Plan™, a physician purchases $1,000 of monthly annuity income and elects to retire with the basic form of annuity which has a 10 year guarantee period. When the physician reaches age 71, they start receiving monthly annuity payments to their registered plan which have totaled $84,000 when they pass away at age 78.

     

    Because the annuity includes a 10 year guarantee, and there were 3 years (36 months) remaining on the 10-year guarantee period, the insurer makes a lump sum payment of $36,000 to the deceased physician’s registered plan (36 months x $1,000 per month).

     

    Protecting Contributions from Premature Death

  • Scenario 3 - How Guaranteed Lifetime Income Annuity can protect your spouse.

    At retirement, you can choose a form of annuity that pays a 60% survivor benefit for the lifetime of your spouse (legal or common law) after your death.

     

    Protection for the SpouseHere is an example:

    A physician elects the joint and survivor 60% form of annuity.  Their $1,000 monthly annuity amount is adjusted for this feature and they collect $900 per month for their lifetime.  On the physician’s death, $540 per month is paid into the registered plan for the lifetime of their spouse (who was the spouse at the time their annuity payments commenced) . In order to comply with existing tax rules, the physician had transferred their annuity policy into their RRIF and had designated their spouse as the irrevocable successor annuitant of their RRIF.

  • Scenario 4 - How age & interest rates impacts income

    The Guaranteed Lifetime Income Annuity calculates your benefit on a number of factors but your age and prevailing interest rates at time of contribution are among the most important. The younger you are and the higher the prevailing interest rates when you make your contribution, the greater your benefit will be.

     

    Here is an example:

    A physician is 50 years old and decides to pay a lump sum premium of $10,000 to purchase a Guaranteed Lifetime Income Annuity. Based on the rate table at the time, the premium is paid and considering the physician’s age and sex, the $10,000 premium buys an annual annuity income of $1,200 or a monthly annuity income of $100 per month starting at age 71.

     

    The next year, the physician decides to make another lump sum premium payment of $10,000.  Interest rates have remained stable, but the physician is now 51 and based on the rate table they get an annual annuity income of $1,180 or $98 per month starting at age 71.  With the two contributions, the physician now has $2,380 of annual annuity income.

     

    The following year, the physician makes another lump sum premium payment of $10,000.  They are now 52, but interest rates have gone up so the $10,000 premium buys them an annual annuity income of $1,200 or $100 per month starting at age 71.  In total, the physician is entitled to a guaranteed annual income of $3,580 in retirement payable from Brookfield Annuity Company into their registered plan.

     

    Age & Interest Rates Impact Income

  • Scenario 5 - What happens if you die before receiving any benefit?

    If you die before any annuity income payments have started, your registered plan will get a full refund of the total contributions that you paid up to your date of death.

     

    Here is an example: 

    A physician joined the Guaranteed Lifetime Income Annuity program early and through their various premium payments, they had paid a total of $125,000.  Unfortunately, the physician dies at age 58 before they start receiving their monthly benefits. Upon their death, their registered plan is paid $125,000 in a lump sum.

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.

  • A new offering that reduces risk to your retirement savings

    Choices for Buying an Annuity and Receiving IncomeMost Canadians are living longer and the worry of outliving their retirement income is real and increasing. When surveyed, 82% of OMA members said they needed help converting part of their retirement savings into regular, predictable income in retirement.

     

    The Advantages Retirement Plan™ is now offering the option of purchasing a unique insurance-based savings solution that helps protect from the risk of outliving income. We call this the Guaranteed Lifetime Income Annuity.

     

    The Guaranteed Lifetime Income Annuity is an insurance product underwritten by Brookfield Annuity Company, a Canadian life insurance company licenced federally and in all Canadian provinces and territories. Learn more about Brookfield Annuity Company in the FAQ.

     

    The Guaranteed Lifetime Income Annuity guarantees to pay a monthly income benefit for life starting as early as age 60.  You can determine what will help you meet your retirement income needs based on the following*:

    • how much you want to buy,
    • when you want to buy,
    • how much income you want to receive,
    • when you want to start receiving your income.

     

    *Subject to the terms of the annuity policy

     

    As the Guaranteed Lifetime Income Annuity is offered through the Advantages Retirement Plan™, it is bought with funds held in your registered plan1 (with pre-tax dollars) and benefits are also paid into your registered plan. When money is withdrawn from your RRSP or RRIF it is taxed.

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.


    1 RRSP or RRIF, as applicable.

  • Uniquely designed for doctors

    The Guaranteed Lifetime Income Annuity is designed for OMA members and their spouses/partners who would like to introduce some security in their retirement savings. It gives you control and peace of mind so that regardless of how other components of your retirement savings are performing, you will receive a level of guaranteed income paid into your registered plan from the Guaranteed Lifetime Income Annuity for your lifetime.  This product complements the income you receive from the Canada Pension Plan and potentially Old Age Security benefits, as well as any other retirement savings.

     

    Once you become a member of the Advantages Retirement Plan™ you are able to purchase the Guaranteed Lifetime Income Annuity with your registered plan assets any time after age 50 right up until age 70 years and 10 months.

     

    Timeline for Purchasing the Guaranteed Lifetime Income Annuity

     

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.

  • Putting doctors in control

    Under the Advantages Retirement Plan™ you are responsible for investing in your account. Only you know how much income you need to retire the way you want to, but there are tools on the Advantages Retirement Plan™ portal to help.

     

    The Advantages Retirement Plan™ online modeler helps you manage your choices within the Advantages Retirement Plan™. It can help you determine the right mix between TDF and the Guaranteed Lifetime Income Annuity investments in your RRSP. The modeler also estimates your Canada Pension Plan and Old Age Security benefits.

     

    Flexibility for Purchasing Annuities & Receiving Income

  • Flexible contribution terms to fit any situation

    With the Advantages Retirement Plan™, there are a few ways you can contribute.

     

    These same options apply to your purchase of a Guaranteed Lifetime Income Annuity with the funds you have contributed to the Advantages Retirement Plan™:

    • one or more lump-sum purchases
    • monthly purchases – the Guaranteed Lifetime Income Annuity allows you to purchase future income on a monthly basis

     

    There are no hard and fast rules about how much of your Advantages Retirement Plan™ account you should allocate to purchase an annuity. It depends in part on the level of income security you want and the needs you will have in retirement. Working with the Advantages Retirement Plan™ retirement online modeler, can help you determine what is the right balance between your TDF investments and Guaranteed Lifetime Income Annuity investment.

     

    The modeler can illustrate for you how much income your Guarantee Lifetime Income Annuity purchases may generate once you start drawing payments. It takes into account multiple factors including your age, sex, the amount you buy, prevailing interest rates and the payment features of your Guaranteed Lifetime Income Annuity when you choose to start receiving income.

  • A way to balance volatility and certainty in your retirement

    Retirement income typically is drawn from three main sources:

    • Your non-registered investments and other business or personal assets. Financial investments that you have made outside of your RRSP and TFSA as well as your house, your cottage or your professional corporation and your practice.
    • Income generated from market-based investments held in your RRSP or RRIF. It can account for a meaningful portion of your retirement income. These savings have important tax advantages and potential upside, but depending on what you have invested in, may be subject to market volatility and therefore not completely predictable when making your retirement income calculations;
    • Guaranteed income, which includes Canada Pension Plan, in some circumstances Old Age Security and annuity income like the Guaranteed Lifetime Income Annuity. This income is fully guaranteed in the case of Canada Pension Plan and Old Age Security by the Government of Canada.  In the case of the Guaranteed Lifetime Income Annuity, which is held in your registered plan, it is guaranteed by Brookfield Annuity Company.

     

    The Guaranteed Lifetime Income Annuity Cannot Be Cashed OutWith a Guaranteed Lifetime Income Annuity you can increase the proportion of your retirement income that comes from guaranteed sources. This ultimately reduces your dependence on retirement income that comes from other sources which may be exposed to market volatility.  It is, however, important to note that once you purchase a Guaranteed Lifetime Income Annuity it cannot be cashed out.  It is only available to provide a monthly benefit starting as early as age 60.

     

    We recommend that you seek independent advice regarding your overall financial planning and how the Guaranteed Lifetime Income Annuity fits into your plan.

     

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.

  • Guaranteed Lifetime Income Annuity Enrollment Video

  • Scenario 1 - When you live longer, Guaranteed Lifetime Income Annuity delivers exceptional value

    Because of the features of the Guaranteed Lifetime Income Annuity, which is a form of life insurance, you are guaranteed to receive monthly income payments for as long as you live.

     

    Here is an example:
    A physician is 50 years old and decides to allocate $30,000 of their RRSP account to purchase a Guaranteed Lifetime Income Annuity. Based on the rate table at the time, the premium is paid and considering the physician’s age and sex, the $30,000 premium buys an annual annuity income of $3,600 or a monthly annuity income of $300 per month payable into their registered plan.

     

    When the physician turns 71, a $300 per month payment commences and thanks to their good health they live another 20 years until they pass away at age 91. In total, the physician has received $72,000 in benefits paid into their registered plan for a contribution of only $30,000.

     

    Exceptional Value Living Longer

  • Scenario 2 - Protecting your contributions from premature death

    The Guaranteed Lifetime Income Annuity offers different ways to protect your premiums should you pass away before you receive the full benefit of your contributions. The basic form Guaranteed Lifetime Income Annuity has a guarantee period of 10 years that starts from the date of your first monthly income payment. Should you pass away before the end of the guarantee period, your registered plan will receive a lump sum payment for the balance of the unpaid guaranteed income.  You have the option to choose a 15 year guarantee period rather than the 10 year guarantee if you want longer protection.

     

    Here is an example:
    While a member of the Advantages Retirement Plan™, a physician purchases $1,000 of monthly annuity income and elects to retire with the basic form of annuity which has a 10 year guarantee period. When the physician reaches age 71, they start receiving monthly annuity payments to their registered plan which have totaled $84,000 when they pass away at age 78.

     

    Because the annuity includes a 10 year guarantee, and there were 3 years (36 months) remaining on the 10-year guarantee period, the insurer makes a lump sum payment of $36,000 to the deceased physician’s registered plan (36 months x $1,000 per month).

     

    Protecting Contributions from Premature Death

  • Scenario 3 - How Guaranteed Lifetime Income Annuity can protect your spouse.

    At retirement, you can choose a form of annuity that pays a 60% survivor benefit for the lifetime of your spouse (legal or common law) after your death.

     

    Protection for the SpouseHere is an example:

    A physician elects the joint and survivor 60% form of annuity.  Their $1,000 monthly annuity amount is adjusted for this feature and they collect $900 per month for their lifetime.  On the physician’s death, $540 per month is paid into the registered plan for the lifetime of their spouse (who was the spouse at the time their annuity payments commenced) . In order to comply with existing tax rules, the physician had transferred their annuity policy into their RRIF and had designated their spouse as the irrevocable successor annuitant of their RRIF.

  • Scenario 4 - How age & interest rates impacts income

    The Guaranteed Lifetime Income Annuity calculates your benefit on a number of factors but your age and prevailing interest rates at time of contribution are among the most important. The younger you are and the higher the prevailing interest rates when you make your contribution, the greater your benefit will be.

     

    Here is an example:

    A physician is 50 years old and decides to pay a lump sum premium of $10,000 to purchase a Guaranteed Lifetime Income Annuity. Based on the rate table at the time, the premium is paid and considering the physician’s age and sex, the $10,000 premium buys an annual annuity income of $1,200 or a monthly annuity income of $100 per month starting at age 71.

     

    The next year, the physician decides to make another lump sum premium payment of $10,000.  Interest rates have remained stable, but the physician is now 51 and based on the rate table they get an annual annuity income of $1,180 or $98 per month starting at age 71.  With the two contributions, the physician now has $2,380 of annual annuity income.

     

    The following year, the physician makes another lump sum premium payment of $10,000.  They are now 52, but interest rates have gone up so the $10,000 premium buys them an annual annuity income of $1,200 or $100 per month starting at age 71.  In total, the physician is entitled to a guaranteed annual income of $3,580 in retirement payable from Brookfield Annuity Company into their registered plan.

     

    Age & Interest Rates Impact Income

  • Scenario 5 - What happens if you die before receiving any benefit?

    If you die before any annuity income payments have started, your registered plan will get a full refund of the total contributions that you paid up to your date of death.

     

    Here is an example: 

    A physician joined the Guaranteed Lifetime Income Annuity program early and through their various premium payments, they had paid a total of $125,000.  Unfortunately, the physician dies at age 58 before they start receiving their monthly benefits. Upon their death, their registered plan is paid $125,000 in a lump sum.

     

    Guaranteed lifetime income is provided through a life annuity policy arranged by OMA Insurance Inc., a licensed insurance agency, and underwritten by Brookfield Annuity Company, a Canadian life insurance company licensed federally and in all Canadian provinces and territories.

    Assuris Protection

    Assuris protects at least 85% of the monthly income benefit. For policies that have a monthly income benefit of $2,000 or less, policyholders will retain the full amount of their benefit. To learn more about Assuris, please visit www.assuris.ca.