 |
These rates are accurate as of January 27, 2012
The following table of rates may be useful as you consider converting your RRSP's to an income.
Please remember that rates are current at the time of posting to the site, but may change without notice.
Monthly incomes commencing one month from issue based on $100,000:
| |
Life Annuity 10 yr. Guarantee |
R.R.I.F. |
| Age |
Male |
Female |
Joint |
1st year
Minimum |
Accelerated
Payout |
Total
Payout |
| 60 |
492.02 |
451.06 |
411.95 |
139.00 |
5yrs $1,783 |
$106,980 |
| 70 |
634.72 |
567.54 |
520.30 |
167.00 |
10yrs $942 |
$113,040 |
| 80 |
796.16 |
744.37 |
693.22 |
198.00 |
15yrs $666 |
$119,880 |
GICs
|
| 1.75 |
2.50 |
2.12 |
2.31 |
2.40 |
2.71 |
2.50 |
| Daily |
1 yr |
2 yr |
3 yr |
4 yr |
5 yr |
10 yr |
As an alternative to investing your non-registered capital in GIC's or bonds, you may consider the "Insured Annuity" which may dramatically increase your after-tax cash flow as indicated below:
Insured Annuity
Income based on $100,000, male or female age 70:
| |
GIC at
2.71 % |
Life Annuity |
| |
|
Male |
Female |
| Gross Income |
$ 2,710.00 |
$ 8,090.60 |
$ 7,052.67 |
| Taxable Income |
$ 2,710.00 |
$ 844.22 |
$ 841.49 |
| Tax (payable at 37.7 %) |
$ 1,021.67 |
$ 318.27 |
$ 317.24 |
| Net Income |
$ 1,688.33 |
$ 7,772.33 |
$ 6,735.43 |
| Insurance Cost |
$ 0.00 |
$ 4,138.00 |
$ 3,320.00 |
| After Tax Rate of Return |
1.69 % |
3.63 % |
3.42 % |
| Spendable Income |
$ 1,688.33 |
$ 3,634.33 |
$ 3,415.43 |
| GIC Equivalent % |
|
5.83
% |
5.48
% |
|
|
|
