Illustrating the Term Certain Annuity quote


Check out the Term Certain Annuity SurveyPension splitting - that is, the ability to "allocate" income to a spouse (or common-law partner) with the potential added advantage of allowing the spouse (or common-law partner) to also claim the Pension Tax Credit - will, in many cases, reduce the overall taxes payable on the family's income. To qualify for pension splitting, the individual must first receive "eligible pension income".1

Standard Life's Term Certain Annuity is an investment solution that provides your clients with an opportunity for pension splitting.2

To illustrate the Term Certain Annuity advantage with Wealthcare, follow these step-by-step guidelines.3

Below is the Wealthcare introductory splash page. Choose the type of annuity you would like to illustrate.

In this Example, we have chosen a Non-Registered Annuity.



  1. Enter in the client's Date of Birth and their Sex.
    In this Example, it is a male born August 28, 1941.

  2. Select the Product.
    In this Example, a Conventional Annuity.

  3. Enter in the premium Payment Date and the premium Amount.
    You have the choice to Solve For the income or insert a Specified premium amount. In this Example, we chose Specified, as we know the premium the client wants to pay, and entered in the premium amount of $160,000.

  4. Enter the annuity Commencement Date.
    Since we have already specified the Premium, we will Solve For the annuity income.
    For level taxes, click the Prescribed box.4

  5. Select the annuity Type.
    In this Example, Term Certain.

  6. Select the annuity payment Frequency.
    In this Example, Annual.

  7. Select the duration of the Guarantee.
    In this Example, we have chosen the duration of the Term Certain annuity to be 15 years.

Click the OK button to complete the annuity illustration.

1 See subsection 60.03(1) of the Income Tax Act (Canada) (ITA) for a definition of "eligible pension income".
2 See the companion piece Term Certain Annuity with the New Pension Splitting Rules (PC 6234)
3 If you do not already have the software, you may go to Advisor Source at
   http://advisors.standardlife.ca/en/tools/win/index.html to download the latest version.
4 For more information on prescribed annuities, read Taxing Issues, Taxation of Personally Owned Non-Registered
   Prescribed Annuities (PC 5998).