Buying annuities

It is not a good idea to lock into a life annuity or even a term certain annuity that has a time frame of more than five years during periods when interest rates are low.

Before making a decision, ask what interest rate is being used to calculate the annuity payments. If it is very low, consider another income option such as a RRIF. You can switch to an annuity later, when rates are more attractive.