We care about what you care about.

Savings Plan Trends Teresa Norris-LueNational VP, Pension & Retirement ConsultingCowan Insurance Group

Agenda: Savings Plan Trends

Auto Features1

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Millennials—Retirement?

Digital Innovation

Psychological Retirement Readiness

Decumulation

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Savings Plan Trends

How much money is left on the table each year

as a result of plan members not maximizing

their employer match?

A. Less than $1 Billion

B. Between $1 Billion & $2 Billion

C. Between $2 Billion & $3 Billion

D. Between $3 Billion & $4 Billion

E. Over $4 Billion

Auto Features

What Do You Think?1

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Savings Plan Trends

• 28% of employers automatically enrol new

employees into their capital accumulation plans*

• 52% of members say they’d

support auto-enrollment*

• Legislation in some provinces continues to be a

barrier for auto enrollment and auto escalation

• Employment contracts for existing employees

may also complicate this

*Source: Benefits Canada CAP Member Survey

Auto Features1

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Savings Plan Trends

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Source: Davidai, Shai et

al. “The meaning of

default options for

potential organ donors

Savings Plan Trends

The average student debt in Canada is:

A. $18,000

B. $27,000

C. $36,000

D. $45,000

Millennials—Retirement?

What Do You Think?2

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Savings Plan Trends

Financial stress unrelated to retirement:

• Student debt

• Next vacation

• Living expenses

• Continuing education

• First mortgage

Millennials—Retirement? 2

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Savings Plan Trends

What might be more meaningful?

• Student Debt Repayment Matching

• Tax Free Savings Account (TFSA) Options

• Registered Education Savings

Plan (RESP) Matching

• Home Buyers Plan / Lifelong Learning

Plan Withdrawals

• Vacation Accounts

Millennials—Retirement? 2

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Savings Plan Trends

Using technology to:

• Educate

• Connect and support

• Monitor and measure

• Enhance plan member experience

• Add value through information

• Impact behaviour—help employees take action!

Digital Innovation3

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Savings Plan Trends

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Current Future

• Paperless enrollment

• Digital coach/virtual assistants based on

member inquiry

• Personalized plan member portals

• Click to chat/call features

• File feeds between payroll/HRIS and

carriers

• Mobile apps to transact

• Voice enabled enrollment

• Digital coach/virtual assistants—proactive,

personalized nudges using data and AI

• Real time automated data

exchange solutions

• Mobile apps to interact, so all you need is

your phone

Digital Innovation: Evolution3

Savings Plan Trends

• Increase participation and contribution levels

• Increase awareness, understanding, and

appreciation of plans

• Increases data integrity

• Reduce inquiries, manual processes, and

administrative work for your HR

Digital Innovation

So what?3

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Savings Plan Trends

In 2017, the majority of Canadians 60 and

older who continued to work did so:

• Out of necessity

• Out of choice

Psychological

Retirement Readiness

What Do You Think?

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Savings Plan Trends

Traditional questions around

retirement included:

• When should I retire?

• How much money will I need?

• How long will I live?

• Will I run out of money?

• What will my expenses look like in retirement?

Psychological

Retirement Readiness4

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Savings Plan Trends

Have your employees considered the emotional impact that a

retirement lifestyle can bring?

• What will their retirement look like? What will they do? Where will

they live?

• Are they prepared to be with their partner 24/7? Does their family

understand their vision?

• Will they still feel like they have a “purpose” to fulfill?

• Will they feel a loss of identity, influence, and importance?

Psychological Retirement Readiness4

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Savings Plan Trends

Physical Further develop our discount pricing

Social

Emotional

Environmental

Intellectual

Spiritual

Psychological Retirement Readiness4

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Savings Plan Trends

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• Group RRIF/LIF

• Variable Benefits

• Variable Payment Life

Annuities and Advanced Life

Deferred Annuities

Decumulation

CAP = CADP5

Savings Plan Trends

The lost productivity in Canada

related specifically to financial

stress annually costs the economy:

• $10 Billion

• $16 Billion

• $22 Billion

• $28 Billion

Bonus Question What Do You Think?

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