Buy annuity with RDSP

Does anyone know if I can buy an annuity with my RDSP?
Do they sell annuities that are indexed to inflation (the “fake” inflation CPP-D uses)?

“fake” inflation because it is based on things I don’t buy.
Rent goes up more than it does. :frowning:

You can but annuity rates seem very low at the moment (moment meaning the last two decades) so unless you are advanced enough in years to trigger significant mortality credits it’s probably not worth it. The inflation indexed annuities cap it at very low inflation so they don’t really achieve what you need either.

Does anybody post annuity costs?
All the places I looked want to contact me.
I am many years from considering one but I plan everything. :slight_smile:
I’m considering buying a house (I don’t know if I can) because renting is probably not going to work.

Google best annuity rates Canada to get generic rate comparisons. It is cyclical so keep an eye on it over the years, there were smoking deals in the early '90s.

Isn’t there maximum withdrawals on RDSPs?
It seems complicated. :frowning:

Yeah unnecessarily complicated would be a good description of the whole setup. Here’s how you get your money out: How do you get your money out? - RDSP

From a quick look at RBC’s materials it looks like the maximum for the year is a percentage of the assets PLUS payments from locked-in annuities. This is a pretty comprehensive guide

I don’t understand why I can buy an annuity when there seems to be a maximum withdrawal.
I want to withdraw the whole amount to buy an annuity. :slight_smile:
Maybe I’ll die before 60 and then it won’t matter.
Figuring this out would drive my parents crazy and it is beyond me.
Maybe they’ll simplify the wording.

Why not hold it inside the RDSP when all of the annuity income is allowed to be withdrawn each year?

Have an annuity inside an RDSP?
Is that the same as LDAP payments?

An annuity is just a type of investment like a stock or a GIC. It just sits inside your RDSP then you can withdraw the annuity’s income out as an RDSP withdrawal as an LDAP. The annuity itself just continues to sit inside the RDSP. The benefit being that RDSP withdrawals don’t count against means-tested government programs. Your annual maximum withdrawal is split into two buckets, you can withdraw the maximum allowed from any other assets in the RDSP plus the income from the annuity.

But again annuity rates are pretty abysmal right now so probably not worth doing for quite a while… I just bought a broad low fee index fund for mine (VEQT).

Am I using the wrong term?
I want to buy something at age 60 with my RDSP that provides a guaranteed income for the rest of my life.
Since I will be losing mt LTD.

You’re using the right term. There are probably better ways to get a higher income with your funds at age 60, try asking on for advice.