Annuities: Good Income Option For Retirees Despite New Tax Rules

In the January 2016 Canadian Money Saver edition, I wrote an article titled An Easy Way to Save Money on a Prescribed Annuity. I discussed how the new tax legislation (Bill C-43 effective January 2017), would change the exemption test on annuities. Bill C-43 will now use a new mortality table to calculate the taxable portion on prescribed annuities, resulting in a higher tax payable for non-registered prescribed annuities. Despite the recent tax changes, annuities continue to be an...