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Welcome to your <ABC Company Ltd.> Group RRSP. Agenda. Why plan for retirement? The benefits of a Group RRSP Investment options Steps to get you started Service and support available. Who is Manulife?. A Canadian company operating worldwide More than 115 years of strength and stability
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Agenda Why plan for retirement? The benefits of a Group RRSP Investment options Steps to get you started Service and support available
Who is Manulife? A Canadian company operating worldwide More than 115 years of strength and stability Consistently receives top ratings from various rating agencies Strong and Secure!
Responsibilities Take Control of Your Retirement
Why save for retirement? One third of Canadians age 60 or older are worried they’ll outlive their retirement savings1 Two thirds of Canadian households expecting to retire in 2030 are not saving enough to meet necessary living expenses2 1 2007 Decima Research Poll 2 2007 Study by University of Waterloo and Canadian Institute of Actuaries
Why save for retirement now? To ensure you have enough money for the lifestyle you want to enjoy Saving in your sock drawer may not be enough The longer you save, the more you can accumulate
Sources of retirement income • Canadians generally rely on three distinct sources of income: 1. Government Pensions • Canada Pension Plan (CPP) • Old Age Security (OAS) • 2. <ABC Company Ltd.> Group RRSP • 3. Personal Savings • RRSPs, GICs, Mutual Funds • Home equity • Other investments
Starting early pays more • Starting 10 years earlier gives Terry $35,000 more than Chris – even though he saved for only 10 years Assumptions: Contributions made at the beginning of each year, compounded annually, at an 8% rate of return.
Advantages of your Group RRSP <Contributions from the Employer> A convenient way to save Immediate tax reduction Tax-deferred growth Leading fund managers Lower investment management fees A way to consolidate your savings
Tax Advantage – Your contributions • Employee earning $40,000 per year: Your net pay only changes by $31.85
Investment Management Fees (IMF’s) Take advantage of your group’s purchasing power Potential fee savings for a $5,000 investment over 20 years = $1,353 • Lower fees leave more of your money in your account to grow for your retirement
Decide how to enroll Two choices: Web Go to www.manulife.ca/GRO/enroll Enter policy number and access code Remember to print, complete and sign your Beneficiary Confirmation – then return it to Manulife Paper Tear out the Application Form on page 3 of your Enrolment Guide. <delete web if e-enrolment codes are not yet available>
Paper application form January 1, 1998 January 1, 1998 Not Applicable Not Applicable ON Brett R Male Sawyer 123 Any Street Anytown ON CA N7T 2M0 Married May 25, 1970 123 456 789 English 519-876-1212 BRS@gmail.com <Insert Number> <Company Name>
Name your beneficiary Martha Sawyer Wife 100%
Spousal RRSPs Tax planning – before and after retirement How it works Contributor – you Spousal member – your spouse or common-law partner Tax receipt – sent to you Contribution room used - yours
Decide how to invest
Series of nine Manulife Retirement Date funds: Each fund: Provides a well-balanced investment portfolio inside a single fund Represents a future retirement date Automatically rebalances to become more conservative as retirement date approaches Eight funds available, with dates of 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050. Retirement Date Funds
Retirement Date Funds Hypothetical portfolios. Example is for illustration purposes only. Automatic rebalancing; “Gentle Slope” approach
Asset Allocation Funds and‘Build your own’ portfolio Complete the 8-question Investor Style Questionnaire Tally your score to learn your investor style
Asset Allocation Funds • Ready-made portfolios in a single fund • Simple and easy – little homework • Diversified by asset class, style, manager • Manulife is responsible for monitoring and periodic re-balancing
Match your investor style to the corresponding Asset Allocation Fund Asset Allocation Funds
17 Market Based Funds and 3 Guaranteed Investments ‘Build your own’ portfolio Follow the suggested investment mix
‘Build your own’ portfolio • Match the coloured segment of the pie to the colour of the corresponding fund page
Investment information • Individual information sheets for each fund available in your group retirement program
Default investment If you do not choose fund(s) for your contributions, your money will be invested in the ‘plan default’ until you provide instructions. • Your plan’s default investment: • 1st – A Retirement Date Fund (if your birth date is on file) • 2nd – Manulife Moderate Asset Allocation (if no birth date on file)
Step 4 – Transfer Assets to your Group RRSP Consider transferring your existing registered assets to your Group RRSP Why? Low fees help your retirement savings grow faster Member Reward Program IMFs reduced and GIA rates increased by… $25 – 40,000 – 0.10% $40 – 60,000 – 0.20% $60,000+ - 0.25% Transfer form included on page 21 of your enrolment guide
Education and Communication • Secure website available 24 hours a day, 7 days a week • www.manulife.ca/GRO • Current account balances • Plan information • Investment information • Retirement planning tools
Ongoing Support and Services Annual Account Statements Internet site: www.manulife.ca/GRO Steps Retirement Program® Telephone: 1-888-727-7766 (toll-free) IVR Customer Service Representatives Financial Education Specialists Email: gromail@manulife.com
