Which annuity is designed to bridge the income gap until they receive benefits from OAS and CPP?

Which annuity is designed to bridge the income gap until they receive benefits from OAS and CPP?

• A. Integrated Annuity
• B. Impaired Life Annuity
• C. Indexed Annuity Payments
• D. Prescribed Annuity

Answer: (A)

An integrated annuity is designed to coordinate retirement income with government benefits to fill the gap before CPP and OAS begin. The idea is to provide additional, predictable payments now, while planning for those benefits to start later. When CPP and OAS kick in, the combined total income remains steady because the annuity payments can be adjusted or reduced to prevent overlapping benefits. This creates a smoother, more reliable cash flow through the years when you’re transitioning into those government programs. Other options don’t focus on this coordination with CPP and OAS. An impaired life annuity pays more based on health status rather than bridging to government benefits. Indexed annuity payments adjust for inflation but don’t specifically align with the start of CPP/OAS. A prescribed annuity is chosen for its tax treatment and to meet RRIF/tax rules, not to bridge income until government benefits begin.

An integrated annuity is designed to coordinate retirement income with government benefits to fill the gap before CPP and OAS begin. The idea is to provide additional, predictable payments now, while planning for those benefits to start later. When CPP and OAS kick in, the combined total income remains steady because the annuity payments can be adjusted or reduced to prevent overlapping benefits. This creates a smoother, more reliable cash flow through the years when you’re transitioning into those government programs.

Other options don’t focus on this coordination with CPP and OAS. An impaired life annuity pays more based on health status rather than bridging to government benefits. Indexed annuity payments adjust for inflation but don’t specifically align with the start of CPP/OAS. A prescribed annuity is chosen for its tax treatment and to meet RRIF/tax rules, not to bridge income until government benefits begin.