Close Help --> > var wmDisclaimBanner = document.getElementById("wm-ipp"); if(wmDisclaimBanner != null) { disclaimElement(wmDisclaimBanner); } -->

Prescribed Annuity

A type of annuity that provides tax-efficient income. Under the Income Tax Act a prescribed annuity treats the interest income as if it were constant over the life of the annuity contract. On an after-tax basis the annuitant is therefore able to keep more income in the early years