What type of annuity did Mario choose that offers tax deferral?

Mario chose a prescribed annuity, which allows for tax deferral on the investment income generated within the annuity. This type of annuity provides tax advantages because the earnings on the funds are not immediately taxed; they only become taxable when withdrawals or distributions are made. In Canada, this means that the annuity holder can defer taxes until they start receiving payments, which can be beneficial for long-term financial planning.

In contrast, standard, guaranteed, and joint life annuities typically do not offer the same level of tax deferral benefits. A standard annuity might not have any specific tax-deferral features, while a guaranteed annuity normally guarantees a certain payout for a defined period but does not specifically address tax strategy. A joint life annuity guarantees payments for the lifetimes of two individuals, which is a different focus than tax efficiency. Thus, the prescribed annuity uniquely provides an avenue for tax-deferred growth, making it the most fitting choice in this context.