Annuitization is exchanging the value of your annuity for the issuer's guarantee to make periodic payments to you

• e.g., for a specific period or the rest of your life

Annuitization Of A Segregated Fund

There are two forms of annuitization

• systematic withdrawals
  • each payment treated as a partial redemption
  • taxed on unrealized capital gains
• guaranteed annuity
  • transfer funds to an annuity: purchase price = ACB of annuity
  • treated as full disposition of segregated fund —> taxes