Group Retirement Savings Plan for the Employees of
description
Transcript of Group Retirement Savings Plan for the Employees of
Group Retirement Savings Plan for the Employees of
2
Setting Sail for the FutureSetting Sail for the Future
4
Define your Retirement ObjectivesDefine your Retirement Objectives
Age 55Age 55
Age 60Age 60
Age 65Age 65
At what age?At what age?
Projects Dreams _______ _______ _______
5
The Ideal Age for CanadiansThe Ideal Age for Canadians
Source : Actuariel assumptions calculated by Desjardins Financial Security
… 58 years of age !
……and what is your ideal age ?and what is your ideal age ?
Source : Desjardins Financial Security Retirement Survey
6
How much will you need for a How much will you need for a comfortable retirement?comfortable retirement?
The 70 % ruleThe 70 % rule
Example : Mr. Martin's situation
Current salary $75 000
The 70% rule x 70%
Income at retirement (in today's dollars)
= $52 500
A detailed budgetA detailed budgetor
88
Explore the various sources of Explore the various sources of income at retirement income at retirement
Income before retirement (IBR)
Inco
me
at r
etir
emen
t(7
0% o
f IB
R)
Personal savings
QPP/CPP
OAS
9
Plan HighlightsPlan Highlights
Type of Plan:Type of Plan: Group RRSP
Plan Objective:Plan Objective: Save for retirement
Eligibility to plan:Eligibility to plan: 1 year of employment
Participation:Participation: Voluntary
Spousal account authorized
10
Contributions :Contributions :
Employees: 1% to 17% of salary
Employer:
100% on the 1st 1% of employee contribution (maximum of $ 300)
Transfers from other plans: Transfers from other plans: allowed
Plan HighlightsPlan Highlights
11
Benefits upon termination:Benefits upon termination:Destination RRSP, RRIF, Cash
Benefits upon death:Benefits upon death:
Cashable by the beneficiary,
Transferable to the surviving spouse
Withdrawals while employed: Withdrawals while employed: Allowed for employee contributions only
Plan HighlightsPlan Highlights
12
Advantages of your Pension PlanAdvantages of your Pension Plan
The company contributes on your behalf Payroll deductions reduce your taxable income Wide selection of funds to choose from No minimum or maximum investment per fund Easy member access to information and assistance
13
Start Early and Accumulate More !Start Early and Accumulate More !
Contribution of $2 000 annually or $5.50 per day
Time is on your side…Time is on your side…
14
Time is on your Side!Time is on your Side!
* Estimated annual return of 6.5%
126% more in savings !
Investment of $20 x 52 weeks x 40 years
Investment of $40 x 52 weeks x 20 years
Acc
um
ula
ted
val
ue
at
ret
ire
men
t
Accumulation period
16
A Three-Step ApproachA Three-Step Approach
1.1. Fill out the questionnaireFill out the questionnaire
2.2. Determine your investor profileDetermine your investor profile
3.3. Choose your investmentsChoose your investments
17
Determine your Investor Profile Determine your Investor Profile **
* Questionnaire available on our Participant Services Web site or in your Enrolment kit
Identify your risk toleranceIdentify your risk tolerance
Balanced
Growth
Energetic
Speculative
SecureModerate
18
Choose your Investments Choose your Investments **
Select a lifecycle pathSelect a lifecycle path
3 lifecycle paths available3 lifecycle paths available
AAdapted to your age and risk tolerancedapted to your age and risk tolerance
Select your fundsSelect your funds
6 multi-management funds or 6 multi-management funds or guaranteed fundguaranteed fund
Based on your investor profile…Based on your investor profile…
* Refer to the "My Investment Funds" document to know the options applicable to your plan
or
19
Select a Lifecycle PathSelect a Lifecycle Path
Your investor Your investor profileprofile
Your Your ageage
Your path towardsYour path towardsretirementretirement
Secure Path
Automatic evolution of investmentsQuarterly rebalancing
20
Pre-determined asset allocation
Multi-management 20/80 Fund
Multi-management 35/65 Fund
Multi-management 100 Fund
Multi-management 80/20 Fund
Multi-management 65/35 Fund
Multi-management 50/50 Fund
Select your FundsSelect your Funds
21
Guaranteed FundGuaranteed Fund
Guaranteed return
Term of 5 years
Redeemable at any time
Select your FundsSelect your Funds
22
S&P/TSX returns from 1997 to 2007
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
1 year 10 years
For your retirement, focus on long term returnsFor your retirement, focus on long term returns
The damage The damage created by a created by a
market downturn market downturn is temporary if you is temporary if you
stay invested!stay invested!
Returns: Short Term vs. Long TermReturns: Short Term vs. Long Term
24
Setting Sail for the Future Education CentreSetting Sail for the Future Education CentreGuidance & support in planning your retirementGuidance & support in planning your retirement
Setting Sail for the Future Phone lineSetting Sail for the Future Phone line
• Transactional services• Changes to your plan• Assistance on choice of investments
Human touch services Specialized agents
25
Participant Services Web siteParticipant Services Web site
Complete array of dynamic tools to help you plan your retirement
www.dfs.ca/participantwww.dfs.ca/participant
• Simple and complete transactional services• Information on your account• Changes to your plan
Setting Sail for the Future Education CentreSetting Sail for the Future Education CentreGuidance & support in planning your retirementGuidance & support in planning your retirement
26
Enrolment kit Setting Sail for the Future newsletter Statement Investment Info bulletin
Setting Sail for the Future Education CentreSetting Sail for the Future Education CentreGuidance & support in planning your retirementGuidance & support in planning your retirement
Communication tools for participants Communication tools for participants
• Targeted• Integrated• User-friendly
28
Participant StatementParticipant Statement
Account summaryAccount summary
Asset allocationAsset allocation
Investment directionsInvestment directions
Personalized rate of returnPersonalized rate of return
29
Review your Action PlanReview your Action Plan
Life stages:Life stages: Joining the labour force
Career and family Mid-life
Life events:Life events: Career/job changes Marriage Birth Death
30
Thank you!Thank you!