These videos are designed to help you unlock the power of your group savings plan and reach your savings goals.
Is debt getting in the way of your financial well-being? This webinar will help you better understand it and create a plan to pay it down.
Learn about:
- Credit scores and how they work
- Strategies for paying off your debt
- Where you can get help
Description:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Managing debt – From stress to security
This is the cover slide. It displays the title of the presentation, setting the tone for a guide focused on helping individuals move from financial stress to security.
Presenter:
Hello and welcome to today’s webinar, Managing Debt from stress to security.
Slide 2: Have debt? You’re not alone.
Presents key statistics:
$2.5 trillion in consumer debt in Canada.
$4,300 is the average credit card balance.
1 in 23 Canadians have missed at least one payment.
Presenter:
Now one of the reasons you may have joined this webinar is that you currently hold debt. Rest assured, you’re not alone.
Consumer debt in Canada reached $2.5 trillion in Q2 of 2024 & the
Average credit card holder carries a balance of $4,300 – this is highest level we’ve seen since 2007 unfortunately, 1 in 23 consumers missed a payment on at least one credit product in Q2 2024
These statistics are reason for concern and in my opinion indicates the importance of addressing debt within your own personal financial situation.
Let’s start the conversation on how you can understand the debt you hold so you can feel more confident in managing it in the future.
Slide 3: Agenda
Outlines the four main topics covered:
Debt vocabulary.
Understanding your credit score.
Getting your debt under control.
Signs you’re financially secure.
Presenter:
We’ll review the different types of debt, dive into how debt works and talk about how you can begin to take control of it and make progress towards financial stability.
Slide 4: Debt Vocabulary
Introduces the section on understanding common debt-related terms.
Presenter:
To understand debt, and how to get out of it, a great place to start is by learning the vocabulary used to describe it.
Slide 5: Debt vocabulary
Defines:
Minimum payment: The smallest amount you must pay on a debt.
Interest: The cost of borrowing money.
Principal: The original amount borrowed, not including interest.
Presenter:
Let’s start with the basics;
Principal: Is the amount you borrowed, excluding additional charges, like interest.
Interest: The amount your lender charges you to borrow money.
How much interest you’re charged will depend on how much you owe and your interest rate. Keep in mind;
Different credit products have different rates. For example, your credit card may have an annual interest rate of 19%, while your mortgage might have an interest rate of 5%.
Minimum payment: The minimum amount you’re required to pay on the debt you owe. If you don’t make the payment, you’ll risk lowering your credit score.
Slide 6: Debt vocabulary
Explains:
Secured debt: Backed by an asset, which can be reclaimed if payments are missed.
Unsecured debt: Not backed by an asset, only by your promise to repay.
Notes that some credit-rebuilding products may be secured by a deposit.
Presenter:
Secured debt: Debt that’s tied to the asset (like a car, appliance, electronic device or house) you used it to buy. With secured debt the lender has the right to take back the asset if you don’t make your payments.
Exception: Products designed to help you re-build your credit may also be secured by a deposit you provide to the lender in exchange for use of the product. For example, a secured credit card.
Unsecured debt: Debt that isn’t secured by anything other than your commitment to repay it. Credit card debt is a good example of debt that’s usually unsecured.
Secured debts usually have lower interest rates than unsecured debts because they’re less risky for the lender. It’s because if you don’t repay your debt the lender can take and sell your asset to recover some or all of their losses.
Slide 7: Debt vocabulary
Defines:
Amortization: Total time to repay a debt.
Term: The fixed period for repayment and interest rate.
Revolving credit: Credit that can be reused after repayment.
Presenter:
Amortization: The amount of time you have to repay your debt. For example, many mortgages have amortization periods of 25 years, while car loans often have amortization periods of 5 years.
Term: How long your repayment and interest terms are locked in for. With some debt products, like mortgages, if you repay your debt before the term is up, you may incur extra fees and penalties. Debt products that are available for no set amount of time, like credit cards, won’t have a specific term and you can repay it anytime.
Revolving credit: Credit products that allow you to re-borrow money once you pay it. Credit cards are the most common example of revolving credit.
Slide 8: Credit cards & lines of credit - How they’re the same
Lists similarities between credit cards and lines of credit:
Both are revolving credit.
Both may use a card.
Payments vary with balance.
Interest is charged immediately on cash advances.
Presenter:
Let’s review one of the questions that often get’s asked when comparing debt products.
What’s the difference between credit cards and lines of credit?
First, How are they the same
Both are types of revolving credit
Both may be accessed using a card
Both require monthly payments that go up when your balance goes up and go down when your balance goes down
Both charge interest immediately on cash advances
Slide 9: Credit cards & lines of credit - How they’re different
Outlines differences:
Credit cards have higher interest rates (~20%).
Lines of credit have lower rates but are harder to qualify for.
Lines may allow interest-only payments.
Credit cards offer a 21-day grace period; lines of credit do not.
Presenter:
Let’s consider the difference between a credit card and a line of credit.
Credit cards typically have rates around 20%
Lines of credit usually have much lower rates, in part because they can be harder to qualify for.
Lines of credit sometimes have interest-only repayment options
Credit cards usually have a grace period of 21 days where you aren’t charged interest on your purchases
You’re charged interest as soon as you make a purchase on a line of credit
This information is general. Review the terms and conditions of your specific credit products for the most accurate information.
Slide 10: Understanding Your Credit Score
Slide to introduce the section on credit scores
Presenter:
Now that we have an understanding of debt, let’s review one of it’s impacts.
When you want to apply to take on new debt, your credit score is a major deciding factor if you’ll get approved. Now let’s talk about how credit works, and what you can do to boost your credit score.
Slide 11: What does it mean to have good or bad credit?
Explains:
Credit scores are 3-digit numbers used by lenders.
A high score means better access to credit and lower rates.
A low score limits financial options
Presenter:
What does it mean to have a good or bad credit score and why is it important:
First, Canada’s lenders rely on your credit score to help them decide if they should lend you money and what interest rate to charge.
Your credit score is a three-digit number that comes from the information in your credit report.
When people talk about having good or bad credit, they’re usually referring to having either a high (good) or low (bad) credit score.
The higher your credit score, the more credit with favorable rates will be available to you.
Slide 12: Collecting your credit information
Describes:
TransUnion and Equifax are Canada’s main credit bureaus.
Lenders report your credit activity to them.
These reports influence your credit score.
Presenter:
You’re probably wondering how your credit score is calculated. Collecting information about how you use your credit is the first step. In Canada, TransUnion and Equifax are the two main credit bureaus who collect this information.
Lenders send information about how you use your credit to the bureaus so they can calculate your credit score.
These businesses or individuals use your credit report to help them make decisions about you.
These decisions could be to:
lend you money
collect a debt
consider you for rental housing
consider you for a job
provide you with insurance
offer you a credit increase
Just to name a few. As you can tell, this can have a big impact on your financial wellbeing.
Slide 13: What influences my credit score?
Lists factors:
Length of credit history.
Age of each credit account.
Credit card balances.
Missed payments.
Usage near or over credit limits.
Presenter:
Now, let’s review what influences your score and ways you improve it.
Your score is influenced by:
How long you’ve had credit – Your credit history takes time to build. A lack of credit history can negatively impact your score
How long each credit has been in your report. Having credit products in good standing for a long time (years) helps increase your score.
If you carry a balance on your credit cards. You can still have good credit if you carry a balance on your credit cards, but your score will be higher if you repay everything that’s owing each month.
If you regularly miss your minimum payments. This will make your score lower.
If you’re usually close to or above your credit limit. This also lowers your score. When all your credit is “maxed out” it indicates to lenders you may be under financial strain and have difficulty repaying your debt.
Slide 14: What influences my credit score?
Adds more factors:
Number of recent credit applications.
Types of credit used.
Accounts in collections.
Bankruptcy or consumer proposals.
Presenter:
Number of recent credit applications. The more applications, the lower your score.
Type of credit you’re using. Credit cards tend to build your credit score faster than any other type of loan, like a mortgage. And having a mix of credit types can help to keep your credit score high.
If your debts have gone to a collections agency. Even debt, like an unpaid phone bill, that goes to collections can lower your credit score.
If you’ve claimed bankruptcy or have had to go through a consumer proposal, your score will go down significantly.
Keep in mind, the changes to your score aren’t permanent. It’s continuously being recalculated.
Slide 15: How can I improve my credit score?
Tips include:
Make payments on time.
Don’t skip payments.
Pay at least the minimum.
Stay under 30% of your credit limit.
Keep older accounts open.
Limit credit checks.
Use a mix of credit types.
Presenter:
I think I can safely say that everyone wants to have a good credit score. Here are some considerations for increasing your credit score, whether you're building it for the first time, trying to raise it or trying to maintain a good score, the actions you take are the same.
#1 Make payments
Always make your payments on time.
Don’t skip a payment.
Pay at least the minimum that’s required.
#2 Use credit wisely
Don’t go over your limit.
Try to use less than 30% of what’s available to you.
#3 Keep older credit products open
Consider keeping an older credit product open, even if you don’t need it. Credit products that have been in good standing for a long time help your score.
#4 Limit checks
While it’s normal to apply for credit from time to time, do what you can to limit the number of checks you allow.
Get your quotes from different lenders within a 2-week period when you’re shopping around for a car loan or mortgage. When you do this, credit bureaus will combine and treat your inquiries as a single inquiry for your score.
#5 Diversify
It’s better to have a mix of credit products. Such as a credit card, a car loan and a line of credit.
Slide 16: How long information stays on your credit report
Explains:
Positive info stays as long as the account is open.
Closed accounts stay 10–20 years.
Negative info (e.g., late payments) stays 6 years.
Credit checks stay 3–6 years.
Bankruptcy stays 6–7 years.
Presenter:
As we discussed, your credit score is consistently evolving so it’s good to review how long information stays on your report.
First, the Positive information
Includes credit that you’ve paid as agreed and have no negative history for.
Depends on the type of information.
Active accounts stay on your report for as long as they're open.
Equifax reports closed accounts for 10 years and TransUnion for up to 20.
Negative information
Things that negatively impact your score, like late payments or accounts going to collections.
Negative information about accounts (like credit cards) stays on your report for 6 years.
Credit checks by lenders, Equifax reports it for 3 years and TransUnion for 6 years.
Bankruptcy stays on your report for 6 or 7 years, depending on the province.
No matter where you have been in the past, establishing and maintaining good debt habits overtime, will help your achieve a better rating.
Slide 17: Getting your debt under control
Introduces the section on managing debt, including six steps to tackle it.
Presenter:
At Canada Life, our mission is to improve the financial, mental and physical well being of Canadians. We know that financial stress is impacting a lot of Canadians.
If you’re struggling to pay off your debt or a lot of your income is going towards debt repayment, there are a few things that you can do to get your debt under control.
Slide 18: Six steps to tackle your debt
Lists six steps to tackle debt:
Make a list of debts
Create a budget
Choose a repayment strategy
Consolidate your debts
Stay on track
Get help if you need
Presenter:
In the following section we’ll cover 6 steps you can take to tackle your debt.
Slide 19: Make a list of your debts
Step 1 of 6. Suggests listing all debts with:
Name of debt.
Balance.
Interest rate.
Minimum payment. An example table is provided.
Presenter:
The first step of tackling your debt is to make a list of all your debts. For each one, you should note:
The total amount you owe
The minimum monthly payment and
The interest rate
You can also use the Financial Goal Calculator when you visit Canada.ca.
By making a list of your debts, you can get an accurate picture of your own situation – the types of debts you have and how it fits into your monthly budget.
Slide 20: Create a budget
Step 2 of 6. Defines budgeting as tracking income, expenses, and savings to reach financial goals.
Presenter:
Step 2 Budgeting
What is budgeting?
- Budgeting is the exercise of documenting all your monthly income, expenses and savings.
- Having a budget helps you spend with intention so you can reach your financial goals – like saving more or paying down debt.
Slide 21: What’s budgeting? How to make a budget
Explains how to:
Document income and expenses.
Use accurate or average numbers.
Identify areas to save.
Create and update a budget.
Presenter:
Making a budget might seem daunting but you can make it easier once you build the right habits and use the right tools. A budget is simply making a list of the income you earn or receive each month and comparing it to what you spend. To help you along, Canada Life has made a free budgeting worksheet available to you at canadalife.com/cashcalculator.
If you’re not sure where to start, here’s how to make a budget in three steps.
Step 1: Document what you earn and spend
Include income from all sources, like employment, spousal support and child tax credits.
Try to use accurate numbers for your expenses instead of guessing.
For expenses that change each month, use the average.
Step 2: Find areas where you can save
Once your income and expenses are documented it’s easier to find areas you can cut back spending.
Are you spending more than you earn? Are you spending with intention or have you made impulsive purchases? Are there any bills you can eliminate all together, like multiple streaming services, old subscriptions, or an unused gym membership?
Consider lifestyle changes to help you only spend what you can afford to.
Step 3: Make a budget
Turn your observations into a budget you can follow. If you’re using the budgeting worksheet, adjust it to reflect what you plan to spend on each item going forward.
Finally, update your budget when things change. For example, if you have a new ongoing expense to account for, or if your income increases.
Slide 22: Choose a debt repayment strategy
Step 3 of 6. Two strategies:
Lowest balance first: Motivating, improves cash flow, but may cost more in interest.
Highest interest first: Saves money long-term, but may take longer to feel relief.
Presenter:
If you have debt, then your budget should include how much of your income you plan to use to repay it. Your next step is in tackling your debt, it to choose a strategy for repaying it.
This is where your list of debts you did in the first step will come in handy. Use it in combination with your budget to help you decide which strategy will work best for you.
Pay debts with the lowest balances first
Helps keep you motivated to stay on track since you’ll feel the accomplishment of paying off a debt sooner.
It may improve your overall cashflow sooner since you’ll have fewer minimum payments to make earlier on.
Beware, with this strategy you may end up paying more interest over time.
Pay debts with the highest interest rates first
In theory, this strategy makes the most financial sense.
You’ll ultimately pay less interest which will help you become debt-free sooner.
But in some cases, it may not be the right way to go. For example, if you’re struggling to make your minimum payments, this method could take longer to provide relief since the focus is lowering interest costs and not the total number of debts you’re paying.
Slide 23: What’s debt consolidation?
Step 4 of 6. Describes debt consolidation:
Combining multiple debts into one.
Applying for a consolidation loan.
Presenter:
Step 4 – Consider consolidating your debts
What’s debt consolidation?
Debt consolidation is when you combine multiple smaller debts into one larger debt.
Work with your preferred lender to apply for a consolidation loan (or other debt product).
Slide 24: Consider consolidating your debts
Explains benefits:
Lower interest.
Better cash flow.
Easier tracking. Also notes challenges:
Harder to qualify.
Secured loans carry risk.
Lenders prefer consolidating their own debts.
Presenter:
So, how can consolidating debt help you? Here are some considerations:
First, the potential benefits of debt consolidation
Depending on the interest rates of your debts and the consolidation loan, it could lower the total amount of interest you pay.
It could improve your cashflow if your current minimum repayment requirements are higher than the singular payment would be.
It’s easier to keep track of one payment compared to several. This can make it easier to ensure your payments are made on time.
More considerations
It can be difficult to qualify for a consolidation loan, especially if your income and/or credit score is low.
Lenders are more likely to approve secured consolidation loans, for example adding your debt to your mortgage. It could be a great option, but keep in mind, if you can’t pay it, now your house is on the line.
Lenders are more likely to consolidate debt that’s already held by them.
Slide 25: Stay on track
Step 5 of 6. Tips:
Stick to your budget.
Plan for emergencies.
Avoid new debt.
Pay more than the minimum.
Presenter:
Managing debt is not a one-time exercise, it is something you will always need to be mindful of, and step 5 is information on how to build good habits and stay on track.
#1 Follow your budget and update it when things change. The longer you have a budget the more accurate your understanding of what your lifestyle costs.
#2 Plan for those emergencies. You do your best to manage your debt but life happens so it’s important to incorporate emergency savings into your and perhaps consider insurance to account for those unforeseen event.
#3 How about avoiding taking on more debt. If possible.
#4 Pay more than the minimum payments.
Slide 26: Example: Paying more than the minimum
Compares two repayment scenarios for a $5,000 credit card debt at 18% interest:
Minimum only: Takes nearly 19 years, costs $4,799 in interest.
Minimum + $100: Takes just over 3 years, saves $3,502 in interest.
Presenter:
You might be wondering why I’m suggesting you pay more than the minimums. It’s because some credit products like credit cards, have minimum payments that aren’t designed to help you pay repay your debt quickly.
On credit cards, your minimum payment will typically be the higher of a dollar amount or a percentage of your outstanding balance. By paying only the minimum payment amount, you’re extending the amount of time it will take to repay your debt and increasing the total amount of interest you’ll have paid.
Let’s look at an example to illustrate how paying more than your minimum can result in a lot of savings.
In this example we have a $5,000 balance on our credit card. The interest rate is 18% and the minimum payment required is the greater of $10 or 3% of your outstanding balance. In the first scenario we’ll pay only the minimum that’s required of us. In the second scenario we’ll pay the minimum plus an extra $100 each month.
As you can see, the extra $100 each month makes a big difference.
We’ve saved a lot of time. Instead of paying off our credit card balance in almost 19 years, we’re paying it off in just over 3.
And because we’re paying it sooner, we’re also saving in interest charges and will end up paying around $3,502.
Slide 27: Get help if you need it
Step 6 of 6. Encourages seeking help:
Credit counsellors offer advice.
Professionals can help with bankruptcy or consumer proposals.
Presenter:
The last step to consider, Step 6: Get help if you need it
Tackling debt can feel overwhelming – you don’t need to do it alone.
Credit counsellors can give you advice and help you make a strategy.
Professionals can help you decide if you need to take a bigger step than what we’ve talked about today.
Slide 28: Help with debt is included with your plan
Lists support resources:
Credit Counselling Society: nomoredebts.org, 1-877-636-8999.
Québec/Atlantic: solveyourdebts.com, 1-888-753-2227.
Presenter:
As a Canada Life group savings plan member, you have access to free and discounted credit counselling services from these non-profit organizations. The phone numbers you see on the screen are exclusive to Canada Life plan members. Or you can go to their websites to explore on your own.
The Credit Counselling Society is a non-profit service available to help you manage your expenses during challenging times. You'll get confidential one-on-one financial coaching. If you're in Quebec or the Atlantic provinces, contact Credit Counselling Services of Atlantic Canada.
Slide 29: Reduced fees for Canada Life plan members
Outlines fee reductions:
Free counselling.
Waived setup fees.
Monthly fees capped at 10% of deposit, up to $75.
Presenter:
Here are the fees for accessing their services. As shown, your plan gives you access to most services for free.
Slide 30: How will I know when my debt is under control and my financial well-being is good?
Indicators of financial well-being:
Meeting financial needs.
Resilience to future challenges.
Progress on goals.
Freedom to make life choices.
Presenter:
I hope you found this information useful. It can be so empowering when you feel positive about your financial future.
When your financial well-being is good, you’ve met your current commitments and needs comfortably and have the financial resilience to maintain this in the future. It can mean having control over your finances, being able to navigate a financial setback, meeting your financial goals or having the freedom to make choices that let you find balance in your life.
Slide 31: Questions?
Encourages reaching out for help. Provides a phone number and website for support. States that the information is general and educational. No guarantees are made about future outcomes.
Presenter:
That brings us to the end of our presentation. Thank you for watching. Be sure to check out our other webinars to keep learning about money and your group savings plan
Description:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Managing debt – From stress to security
This is the cover slide. It displays the title of the presentation, setting the tone for a guide focused on helping individuals move from financial stress to security.
Presenter:
Hello and welcome to today’s webinar, Managing Debt from stress to security.
Slide 2: Have debt? You’re not alone.
Presents key statistics:
$2.5 trillion in consumer debt in Canada.
$4,300 is the average credit card balance.
1 in 23 Canadians have missed at least one payment.
Presenter:
Now one of the reasons you may have joined this webinar is that you currently hold debt. Rest assured, you’re not alone.
Consumer debt in Canada reached $2.5 trillion in Q2 of 2024 & the
Average credit card holder carries a balance of $4,300 – this is highest level we’ve seen since 2007 unfortunately, 1 in 23 consumers missed a payment on at least one credit product in Q2 2024
These statistics are reason for concern and in my opinion indicates the importance of addressing debt within your own personal financial situation.
Let’s start the conversation on how you can understand the debt you hold so you can feel more confident in managing it in the future.
Slide 3: Agenda
Outlines the four main topics covered:
Debt vocabulary.
Understanding your credit score.
Getting your debt under control.
Signs you’re financially secure.
Presenter:
We’ll review the different types of debt, dive into how debt works and talk about how you can begin to take control of it and make progress towards financial stability.
Slide 4: Debt Vocabulary
Introduces the section on understanding common debt-related terms.
Presenter:
To understand debt, and how to get out of it, a great place to start is by learning the vocabulary used to describe it.
Slide 5: Debt vocabulary
Defines:
Minimum payment: The smallest amount you must pay on a debt.
Interest: The cost of borrowing money.
Principal: The original amount borrowed, not including interest.
Presenter:
Let’s start with the basics;
Principal: Is the amount you borrowed, excluding additional charges, like interest.
Interest: The amount your lender charges you to borrow money.
How much interest you’re charged will depend on how much you owe and your interest rate. Keep in mind;
Different credit products have different rates. For example, your credit card may have an annual interest rate of 19%, while your mortgage might have an interest rate of 5%.
Minimum payment: The minimum amount you’re required to pay on the debt you owe. If you don’t make the payment, you’ll risk lowering your credit score.
Slide 6: Debt vocabulary
Explains:
Secured debt: Backed by an asset, which can be reclaimed if payments are missed.
Unsecured debt: Not backed by an asset, only by your promise to repay.
Notes that some credit-rebuilding products may be secured by a deposit.
Presenter:
Secured debt: Debt that’s tied to the asset (like a car, appliance, electronic device or house) you used it to buy. With secured debt the lender has the right to take back the asset if you don’t make your payments.
Exception: Products designed to help you re-build your credit may also be secured by a deposit you provide to the lender in exchange for use of the product. For example, a secured credit card.
Unsecured debt: Debt that isn’t secured by anything other than your commitment to repay it. Credit card debt is a good example of debt that’s usually unsecured.
Secured debts usually have lower interest rates than unsecured debts because they’re less risky for the lender. It’s because if you don’t repay your debt the lender can take and sell your asset to recover some or all of their losses.
Slide 7: Debt vocabulary
Defines:
Amortization: Total time to repay a debt.
Term: The fixed period for repayment and interest rate.
Revolving credit: Credit that can be reused after repayment.
Presenter:
Amortization: The amount of time you have to repay your debt. For example, many mortgages have amortization periods of 25 years, while car loans often have amortization periods of 5 years.
Term: How long your repayment and interest terms are locked in for. With some debt products, like mortgages, if you repay your debt before the term is up, you may incur extra fees and penalties. Debt products that are available for no set amount of time, like credit cards, won’t have a specific term and you can repay it anytime.
Revolving credit: Credit products that allow you to re-borrow money once you pay it. Credit cards are the most common example of revolving credit.
Slide 8: Credit cards & lines of credit - How they’re the same
Lists similarities between credit cards and lines of credit:
Both are revolving credit.
Both may use a card.
Payments vary with balance.
Interest is charged immediately on cash advances.
Presenter:
Let’s review one of the questions that often get’s asked when comparing debt products.
What’s the difference between credit cards and lines of credit?
First, How are they the same
Both are types of revolving credit
Both may be accessed using a card
Both require monthly payments that go up when your balance goes up and go down when your balance goes down
Both charge interest immediately on cash advances
Slide 9: Credit cards & lines of credit - How they’re different
Outlines differences:
Credit cards have higher interest rates (~20%).
Lines of credit have lower rates but are harder to qualify for.
Lines may allow interest-only payments.
Credit cards offer a 21-day grace period; lines of credit do not.
Presenter:
Let’s consider the difference between a credit card and a line of credit.
Credit cards typically have rates around 20%
Lines of credit usually have much lower rates, in part because they can be harder to qualify for.
Lines of credit sometimes have interest-only repayment options
Credit cards usually have a grace period of 21 days where you aren’t charged interest on your purchases
You’re charged interest as soon as you make a purchase on a line of credit
This information is general. Review the terms and conditions of your specific credit products for the most accurate information.
Slide 10: Understanding Your Credit Score
Slide to introduce the section on credit scores
Presenter:
Now that we have an understanding of debt, let’s review one of it’s impacts.
When you want to apply to take on new debt, your credit score is a major deciding factor if you’ll get approved. Now let’s talk about how credit works, and what you can do to boost your credit score.
Slide 11: What does it mean to have good or bad credit?
Explains:
Credit scores are 3-digit numbers used by lenders.
A high score means better access to credit and lower rates.
A low score limits financial options
Presenter:
What does it mean to have a good or bad credit score and why is it important:
First, Canada’s lenders rely on your credit score to help them decide if they should lend you money and what interest rate to charge.
Your credit score is a three-digit number that comes from the information in your credit report.
When people talk about having good or bad credit, they’re usually referring to having either a high (good) or low (bad) credit score.
The higher your credit score, the more credit with favorable rates will be available to you.
Slide 12: Collecting your credit information
Describes:
TransUnion and Equifax are Canada’s main credit bureaus.
Lenders report your credit activity to them.
These reports influence your credit score.
Presenter:
You’re probably wondering how your credit score is calculated. Collecting information about how you use your credit is the first step. In Canada, TransUnion and Equifax are the two main credit bureaus who collect this information.
Lenders send information about how you use your credit to the bureaus so they can calculate your credit score.
These businesses or individuals use your credit report to help them make decisions about you.
These decisions could be to:
lend you money
collect a debt
consider you for rental housing
consider you for a job
provide you with insurance
offer you a credit increase
Just to name a few. As you can tell, this can have a big impact on your financial wellbeing.
Slide 13: What influences my credit score?
Lists factors:
Length of credit history.
Age of each credit account.
Credit card balances.
Missed payments.
Usage near or over credit limits.
Presenter:
Now, let’s review what influences your score and ways you improve it.
Your score is influenced by:
How long you’ve had credit – Your credit history takes time to build. A lack of credit history can negatively impact your score
How long each credit has been in your report. Having credit products in good standing for a long time (years) helps increase your score.
If you carry a balance on your credit cards. You can still have good credit if you carry a balance on your credit cards, but your score will be higher if you repay everything that’s owing each month.
If you regularly miss your minimum payments. This will make your score lower.
If you’re usually close to or above your credit limit. This also lowers your score. When all your credit is “maxed out” it indicates to lenders you may be under financial strain and have difficulty repaying your debt.
Slide 14: What influences my credit score?
Adds more factors:
Number of recent credit applications.
Types of credit used.
Accounts in collections.
Bankruptcy or consumer proposals.
Presenter:
Number of recent credit applications. The more applications, the lower your score.
Type of credit you’re using. Credit cards tend to build your credit score faster than any other type of loan, like a mortgage. And having a mix of credit types can help to keep your credit score high.
If your debts have gone to a collections agency. Even debt, like an unpaid phone bill, that goes to collections can lower your credit score.
If you’ve claimed bankruptcy or have had to go through a consumer proposal, your score will go down significantly.
Keep in mind, the changes to your score aren’t permanent. It’s continuously being recalculated.
Slide 15: How can I improve my credit score?
Tips include:
Make payments on time.
Don’t skip payments.
Pay at least the minimum.
Stay under 30% of your credit limit.
Keep older accounts open.
Limit credit checks.
Use a mix of credit types.
Presenter:
I think I can safely say that everyone wants to have a good credit score. Here are some considerations for increasing your credit score, whether you're building it for the first time, trying to raise it or trying to maintain a good score, the actions you take are the same.
#1 Make payments
Always make your payments on time.
Don’t skip a payment.
Pay at least the minimum that’s required.
#2 Use credit wisely
Don’t go over your limit.
Try to use less than 30% of what’s available to you.
#3 Keep older credit products open
Consider keeping an older credit product open, even if you don’t need it. Credit products that have been in good standing for a long time help your score.
#4 Limit checks
While it’s normal to apply for credit from time to time, do what you can to limit the number of checks you allow.
Get your quotes from different lenders within a 2-week period when you’re shopping around for a car loan or mortgage. When you do this, credit bureaus will combine and treat your inquiries as a single inquiry for your score.
#5 Diversify
It’s better to have a mix of credit products. Such as a credit card, a car loan and a line of credit.
Slide 16: How long information stays on your credit report
Explains:
Positive info stays as long as the account is open.
Closed accounts stay 10–20 years.
Negative info (e.g., late payments) stays 6 years.
Credit checks stay 3–6 years.
Bankruptcy stays 6–7 years.
Presenter:
As we discussed, your credit score is consistently evolving so it’s good to review how long information stays on your report.
First, the Positive information
Includes credit that you’ve paid as agreed and have no negative history for.
Depends on the type of information.
Active accounts stay on your report for as long as they're open.
Equifax reports closed accounts for 10 years and TransUnion for up to 20.
Negative information
Things that negatively impact your score, like late payments or accounts going to collections.
Negative information about accounts (like credit cards) stays on your report for 6 years.
Credit checks by lenders, Equifax reports it for 3 years and TransUnion for 6 years.
Bankruptcy stays on your report for 6 or 7 years, depending on the province.
No matter where you have been in the past, establishing and maintaining good debt habits overtime, will help your achieve a better rating.
Slide 17: Getting your debt under control
Introduces the section on managing debt, including six steps to tackle it.
Presenter:
At Canada Life, our mission is to improve the financial, mental and physical well being of Canadians. We know that financial stress is impacting a lot of Canadians.
If you’re struggling to pay off your debt or a lot of your income is going towards debt repayment, there are a few things that you can do to get your debt under control.
Slide 18: Six steps to tackle your debt
Lists six steps to tackle debt:
Make a list of debts
Create a budget
Choose a repayment strategy
Consolidate your debts
Stay on track
Get help if you need
Presenter:
In the following section we’ll cover 6 steps you can take to tackle your debt.
Slide 19: Make a list of your debts
Step 1 of 6. Suggests listing all debts with:
Name of debt.
Balance.
Interest rate.
Minimum payment. An example table is provided.
Presenter:
The first step of tackling your debt is to make a list of all your debts. For each one, you should note:
The total amount you owe
The minimum monthly payment and
The interest rate
You can also use the Financial Goal Calculator when you visit Canada.ca.
By making a list of your debts, you can get an accurate picture of your own situation – the types of debts you have and how it fits into your monthly budget.
Slide 20: Create a budget
Step 2 of 6. Defines budgeting as tracking income, expenses, and savings to reach financial goals.
Presenter:
Step 2 Budgeting
What is budgeting?
- Budgeting is the exercise of documenting all your monthly income, expenses and savings.
- Having a budget helps you spend with intention so you can reach your financial goals – like saving more or paying down debt.
Slide 21: What’s budgeting? How to make a budget
Explains how to:
Document income and expenses.
Use accurate or average numbers.
Identify areas to save.
Create and update a budget.
Presenter:
Making a budget might seem daunting but you can make it easier once you build the right habits and use the right tools. A budget is simply making a list of the income you earn or receive each month and comparing it to what you spend. To help you along, Canada Life has made a free budgeting worksheet available to you at canadalife.com/cashcalculator.
If you’re not sure where to start, here’s how to make a budget in three steps.
Step 1: Document what you earn and spend
Include income from all sources, like employment, spousal support and child tax credits.
Try to use accurate numbers for your expenses instead of guessing.
For expenses that change each month, use the average.
Step 2: Find areas where you can save
Once your income and expenses are documented it’s easier to find areas you can cut back spending.
Are you spending more than you earn? Are you spending with intention or have you made impulsive purchases? Are there any bills you can eliminate all together, like multiple streaming services, old subscriptions, or an unused gym membership?
Consider lifestyle changes to help you only spend what you can afford to.
Step 3: Make a budget
Turn your observations into a budget you can follow. If you’re using the budgeting worksheet, adjust it to reflect what you plan to spend on each item going forward.
Finally, update your budget when things change. For example, if you have a new ongoing expense to account for, or if your income increases.
Slide 22: Choose a debt repayment strategy
Step 3 of 6. Two strategies:
Lowest balance first: Motivating, improves cash flow, but may cost more in interest.
Highest interest first: Saves money long-term, but may take longer to feel relief.
Presenter:
If you have debt, then your budget should include how much of your income you plan to use to repay it. Your next step is in tackling your debt, it to choose a strategy for repaying it.
This is where your list of debts you did in the first step will come in handy. Use it in combination with your budget to help you decide which strategy will work best for you.
Pay debts with the lowest balances first
Helps keep you motivated to stay on track since you’ll feel the accomplishment of paying off a debt sooner.
It may improve your overall cashflow sooner since you’ll have fewer minimum payments to make earlier on.
Beware, with this strategy you may end up paying more interest over time.
Pay debts with the highest interest rates first
In theory, this strategy makes the most financial sense.
You’ll ultimately pay less interest which will help you become debt-free sooner.
But in some cases, it may not be the right way to go. For example, if you’re struggling to make your minimum payments, this method could take longer to provide relief since the focus is lowering interest costs and not the total number of debts you’re paying.
Slide 23: What’s debt consolidation?
Step 4 of 6. Describes debt consolidation:
Combining multiple debts into one.
Applying for a consolidation loan.
Presenter:
Step 4 – Consider consolidating your debts
What’s debt consolidation?
Debt consolidation is when you combine multiple smaller debts into one larger debt.
Work with your preferred lender to apply for a consolidation loan (or other debt product).
Slide 24: Consider consolidating your debts
Explains benefits:
Lower interest.
Better cash flow.
Easier tracking. Also notes challenges:
Harder to qualify.
Secured loans carry risk.
Lenders prefer consolidating their own debts.
Presenter:
So, how can consolidating debt help you? Here are some considerations:
First, the potential benefits of debt consolidation
Depending on the interest rates of your debts and the consolidation loan, it could lower the total amount of interest you pay.
It could improve your cashflow if your current minimum repayment requirements are higher than the singular payment would be.
It’s easier to keep track of one payment compared to several. This can make it easier to ensure your payments are made on time.
More considerations
It can be difficult to qualify for a consolidation loan, especially if your income and/or credit score is low.
Lenders are more likely to approve secured consolidation loans, for example adding your debt to your mortgage. It could be a great option, but keep in mind, if you can’t pay it, now your house is on the line.
Lenders are more likely to consolidate debt that’s already held by them.
Slide 25: Stay on track
Step 5 of 6. Tips:
Stick to your budget.
Plan for emergencies.
Avoid new debt.
Pay more than the minimum.
Presenter:
Managing debt is not a one-time exercise, it is something you will always need to be mindful of, and step 5 is information on how to build good habits and stay on track.
#1 Follow your budget and update it when things change. The longer you have a budget the more accurate your understanding of what your lifestyle costs.
#2 Plan for those emergencies. You do your best to manage your debt but life happens so it’s important to incorporate emergency savings into your and perhaps consider insurance to account for those unforeseen event.
#3 How about avoiding taking on more debt. If possible.
#4 Pay more than the minimum payments.
Slide 26: Example: Paying more than the minimum
Compares two repayment scenarios for a $5,000 credit card debt at 18% interest:
Minimum only: Takes nearly 19 years, costs $4,799 in interest.
Minimum + $100: Takes just over 3 years, saves $3,502 in interest.
Presenter:
You might be wondering why I’m suggesting you pay more than the minimums. It’s because some credit products like credit cards, have minimum payments that aren’t designed to help you pay repay your debt quickly.
On credit cards, your minimum payment will typically be the higher of a dollar amount or a percentage of your outstanding balance. By paying only the minimum payment amount, you’re extending the amount of time it will take to repay your debt and increasing the total amount of interest you’ll have paid.
Let’s look at an example to illustrate how paying more than your minimum can result in a lot of savings.
In this example we have a $5,000 balance on our credit card. The interest rate is 18% and the minimum payment required is the greater of $10 or 3% of your outstanding balance. In the first scenario we’ll pay only the minimum that’s required of us. In the second scenario we’ll pay the minimum plus an extra $100 each month.
As you can see, the extra $100 each month makes a big difference.
We’ve saved a lot of time. Instead of paying off our credit card balance in almost 19 years, we’re paying it off in just over 3.
And because we’re paying it sooner, we’re also saving in interest charges and will end up paying around $3,502.
Slide 27: Get help if you need it
Step 6 of 6. Encourages seeking help:
Credit counsellors offer advice.
Professionals can help with bankruptcy or consumer proposals.
Presenter:
The last step to consider, Step 6: Get help if you need it
Tackling debt can feel overwhelming – you don’t need to do it alone.
Credit counsellors can give you advice and help you make a strategy.
Professionals can help you decide if you need to take a bigger step than what we’ve talked about today.
Slide 28: Help with debt is included with your plan
Lists support resources:
Credit Counselling Society: nomoredebts.org, 1-877-636-8999.
Québec/Atlantic: solveyourdebts.com, 1-888-753-2227.
Presenter:
As a Canada Life group savings plan member, you have access to free and discounted credit counselling services from these non-profit organizations. The phone numbers you see on the screen are exclusive to Canada Life plan members. Or you can go to their websites to explore on your own.
The Credit Counselling Society is a non-profit service available to help you manage your expenses during challenging times. You'll get confidential one-on-one financial coaching. If you're in Quebec or the Atlantic provinces, contact Credit Counselling Services of Atlantic Canada.
Slide 29: Reduced fees for Canada Life plan members
Outlines fee reductions:
Free counselling.
Waived setup fees.
Monthly fees capped at 10% of deposit, up to $75.
Presenter:
Here are the fees for accessing their services. As shown, your plan gives you access to most services for free.
Slide 30: How will I know when my debt is under control and my financial well-being is good?
Indicators of financial well-being:
Meeting financial needs.
Resilience to future challenges.
Progress on goals.
Freedom to make life choices.
Presenter:
I hope you found this information useful. It can be so empowering when you feel positive about your financial future.
When your financial well-being is good, you’ve met your current commitments and needs comfortably and have the financial resilience to maintain this in the future. It can mean having control over your finances, being able to navigate a financial setback, meeting your financial goals or having the freedom to make choices that let you find balance in your life.
Slide 31: Questions?
Encourages reaching out for help. Provides a phone number and website for support. States that the information is general and educational. No guarantees are made about future outcomes.
Presenter:
That brings us to the end of our presentation. Thank you for watching. Be sure to check out our other webinars to keep learning about money and your group savings plan
Retirement is changing. We’re living longer, healthier lives which means there are more opportunities for our retired years than ever before.
This webinar dives into the details of retirement planning, including:
- Making a retirement budget
- Financial risks and considerations
- Estate planning basics
- Emotional readiness
Description:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: The slide features a photograph of a person working on pottery in a studio, with the text "Retirement Getting close" prominently displayed in red and white.
Presenter: Hi Everyone and welcome to the Retirement – getting close webinar!
Slide 2: The slide presents statistics about Canadians' perspectives on retirement. It highlights that 54% of Canadians see retirement as a new chapter in their lives, while 55% of retirees and pre-retirees aim to balance work and leisure. The slide includes sources for these statistics.
Presenter: Retirement is changing. We’re living longer, healthier lives which means there are more opportunities for our retired years than ever before.
In fact, many Canadians no longer see retirement as a time to solely focus on relaxation and winding down. A survey found that 54% of Canadians who are retired, or are close to retirement, see it as a new chapter in their lives. 55% of retirees and pre-retirees even plan to keep working in some capacity and want a balance of work and leisure in their retired life.
Today’s session will help you plan for a retirement that’s full of possibilities.
Slide 3:
The slide presents an agenda for a retirement-related presentation. The agenda includes four main topics: sources of retirement income, financial risks in retirement, making your wishes known, and retirement readiness. The slide features a red background with white text and a simple icon of six people in a circle.
Presenter: Here are the topics we’ll cover:
-We’ll start with a review of the different income sources you may be able to draw on in retirement.
- Then, we’ll review some of the key financial risks in retirement that you may be faced with. Knowing the risks can help you plan to minimize them.
- Making your wishes known to your loved ones is another important consideration as you age.
- Finally, we’ll talk about some steps you can take to make sure you’re ready to retire when the time comes.
Slide 4:
The slide outlines three sources of retirement income: government benefits, employer-sponsored plans, and personal savings. It includes a photograph of two people, one of whom is holding a tablet.
Presenter: In Canada, there are three main sources of retirement income.
The first are government benefits. They include programs like the Canada Pension Plan (known as CPP) for most Canadians, or the Québec Pension Plan (known as QPP) for those working in Quebec. The amount of CPP or QPP you can expect to receive will depend on your average earnings, what you’ve contributed while working and the age you start receiving it.
Government benefits also includes Old Age Security (or OAS). OAS benefits are based on the number of years you’ve lived in Canada after turning 18. You need to live in Canada for at least 10 years to receive it.
The next income source is savings you’ve accumulated in an employer-sponsored plan – like the one you have with Canada Life. The saving options are different from plan to plan, so it’s important to speak with your plan administrator to learn about the options available to you. Some plans even include employer contributions, where your employer saves on your behalf or matches a portion of what you save.
Finally, the third source of retirement income is personal savings. Personal savings can come from a variety of sources, like a registered retirement savings plan you have at your bank, money you have in a savings account or even a rental property you own.
Slide 5:
The slide titled "Sources of retirement income" illustrates the financial needs for income replacement during working and retirement years. It shows that earned income covers expenses during working years, while retirement years require income from personal savings, employer-sponsored plans, and government benefits to cover expenses. The slide emphasizes the importance of these sources in meeting financial needs during retirement.
Presenter: There are some common misconceptions about the different income sources. One common example is that government benefits will fully replace employment income when you retire. The reality is that they’re only designed to cover a portion of your income. The same goes for employer-sponsored plans. The amount they provide you with depends on how much you and your employer contribute while you’re still working and how much your savings grow over time. This slide shows how the three different income sources can work together to help you meet your expenses in retirement.
As you can see, even if you have savings in both an employer-sponsored plan and receive government benefits, you still may need additional income from personal savings to replace your income and cover all your expenses. This is why planning ahead and carving out personal savings is so important.
Slide 6:
The slide addresses the question, "How much do I need to save?" in the context of retirement. It lists several key considerations for retirement savings, including retirement age, housing, family considerations, transportation, obligations, legacy, continuing to work, and outstanding debt. Each consideration is accompanied by a relevant icon.
Presenter: While many of us will need to rely at least in part on our personal savings in retirement, the amount you need to save is different for everyone. It all depends on your plans for retirement and your personal situation. Things like your retirement age, how much you want to leave behind to loved ones to inherit and whether you plan to continue working part time, all have a big impact on how much you’ll need to save.
That’s why creating a retirement budget based on your individual circumstances is such an important step in the planning process.
Slide 7:
The slide titled "Imagine your retirement" presents four key questions to consider for retirement planning: What will give a sense of purpose when I retire? Do I want to stay in the community I’m living in or move somewhere else? Will I downsize my home? Will I continue to work after I retire? The slide features a background image of a person on a sailboat.
Presenter: When creating a budget for your retirement, start by imagining the retirement you’d like to have.
Here are some questions you can ask yourself to get started:
What will give me a sense of purpose when I retire?
Do I want to stay in the community I’m living in or move somewhere else?
Will I downsize my home?
Will I start a business after I retire or keep working part-time after I retire?
Slide 8:
The slide titled "Imagine your retirement" presents a list of reflective questions about retirement planning, including travel plans, staying engaged with important people, participating in activities, and financial considerations. The slide features a background image of a person on a sailboat.
Presenter:
What are my travel plans?
How will I stay engaged with the people who are most important to me?
What activities will I participate in?
Do I want to spend all my money or leave an inheritance for my loved ones?
The answers to these questions will help you determine how much income you’ll need to have to live the retirement lifestyle you envision for yourself. If you have a partner, be sure to involve them in the planning process.
Slide 9:
The slide provides instructions on how to set a retirement income goal using the "My Canada Life at Work" tool. It includes a screenshot of the web interface, showing the main "Overview" screen with options for contributions, savings, and resources. The interface displays a summary of savings and retirement goals, with a specific section on how to set retirement goals. The slide emphasizes the importance of planning for retirement and provides a visual guide to accessing the retirement goal tool.
Presenter: Once you’ve made a retirement budget, you can use the retirement goal tool on My Canada Life at Work to help you figure out how much you need to save. You can access it from the main Overview screen. Select Set my goal to get started.
Slide 10:
The slide provides instructions for managing a Canada Life group savings plan through the "My Canada Life at Work" portal. It instructs users to sign in using their Access ID and password and offers assistance via a tech line available Monday to Friday, 8 a.m. to 8 p.m. ET. The contact number for the tech line is 1-888-222-0775. The slide features a simple design with a dark gray background and white text, accompanied by a small icon of a laptop and document.
Presenter: If you’re not familiar with My Canada Life at Work, it’s your go-to website to manage your Canada Life group savings plan. In addition to using this tool, you can use it to retrieve statements, choose investments, add a beneficiary and more. If you have trouble signing in, give our tech line a call for help at 1-888-222-0775.
Slide 11:
The slide presents the results of a retirement goal tool from "Canada Life." It shows that the user has $4,158 estimated monthly retirement income and a $2,929 retirement income goal. The user is on track but is advised to keep saving and contribute more to retire earlier. The slide includes a bar chart comparing current and goal income and expenses, and it provides options to change personal information or save the goal.
Presenter: Once you’re done inputting all your information into the tool, it will give you one of two results.
The first is “Congratulations! You’re on track”. This means based on the information you’ve entered, the amount you’re saving will be enough to reach your retirement income goals. You can save your results and keep the calculator updated over time as things change.
The other result is “Save more to reach your goal!”. If you get this result, it doesn’t mean it’s time to panic. It means it’s time to review your strategy so you can make changes today that will get you closer to your savings goal and the retirement you dream for yourself. With the “Save more” result, the tool will let you know how much more you’ll need to save each month to reach your income goals.
Slide 12:
The slide emphasizes the importance of planning ahead for possible risks in retirement. It lists key financial risks such as debt, inflation, longevity, and asset mix. It also highlights the importance of investing in retirement. The slide includes an image of two people looking at a tablet, suggesting a focus on financial planning.
Presenter: Next, let’s talk about some of the risks you’ll face in retirement and ways you can invest to help manage them.
Slide 13:
The slide discusses the financial risks associated with debt, particularly focusing on the challenges retirees face due to reduced or fixed income. It highlights that repaying debt can be more difficult and harder to cope with when interest rates increase. To reduce the risk of debt, it suggests understanding the terms and conditions of debts, paying off as much as possible before retirement, creating a budget to avoid taking on more debt, and seeking help from credit counseling services if needed.
Presenter: The first risk is one you’re probably familiar with. It’s debt.
Debt is the amount of money you owe to whoever lent it to you. Usually, you’re required to pay interest in addition to the amount you owe when it comes time to repay it. Mortgages, car loans, credit cards and lines of credit are all examples of debt. We often hear of “good debt” and “bad debt”, but when you retire, any debt can be risky. This is because when you retire you may be living off a reduced or fixed income. While your income may be fairly stable, if the terms of your debt change, it could become difficult for you to make your payments. Think of recent mortgage rate increases. These increases cost some Canadians hundreds of dollars more each month. When you’re not working, those changes may be hard to compensate for.
Here are some things you can do to reduce the risk of debt in retirement:
- Review the terms and conditions of your debts, including how much you’re required to pay each month, the interest rates and if you’ll be required to pay it off at any point.
- Pay off as much of your debt as you can before you retire. You’ll want consider which debts have the highest rates and which ones have the biggest repayment requirements when you’re deciding what to pay first.
- Make a budget for today and retirement. Having a budget can help to keep your spending on track and avoid getting into more debt. It can also help you uncover areas where you can spend less and use the money to repay your debt.
- Finally, get help from credit counselling services if you need it.
Slide 14:
The slide provides information on credit counseling services available for members. It features two websites: "nomoredebts.org" with a contact number of 1-877-636-8999, and "solveyourdebts.com" with a contact number of 1-888-753-2227. The slide includes images of the websites' homepages and provides the relevant URLs and contact details for accessing these services.
Presenter: Since we’re on the topic of credit counselling, did you know that one of the perks of your Canada Life group savings plan is free access to support from credit counseling services?
Through these services you can get:
Help making a budget
Financial advice based on your situation
Tips to bring your budget in line with your goals
An action plan
Referrals to other services, if needed
If debt is something you’re struggling with, don’t hesitate to reach out and get help.
Slide 15:
The slide discusses the financial risks associated with inflation, particularly for retirees. It explains that inflation risk refers to the potential decrease in purchasing power over time as prices rise. Retirees may find that their income does not keep up with inflation. To protect against inflation risk, the slide suggests continuing to invest in retirement, reviewing and adjusting the retirement budget, and considering that some retirement income sources may increase over time to compensate for inflation. The source of this information is cited at the bottom of the slide.
Presenter: The next financial risk in retirement is inflation.
Inflation is the increase of prices over time. Recent increases of food prices is a good example of inflation. Just think of how much more a trip to the grocery store costs you now compared to before the pandemic. In fact, a recent study found 78% of Canadians feel their personal finances have worsened due to inflation.
The risk of inflation in retirement is that your purchasing power will reduce as prices go up while your income stays the same. You might eventually find that your income doesn’t stretch as far as it once did. There are a few things you can do to protect yourself from the impacts of inflation in retirement.
The first is to keep investing your money when you retire. While you’ll want to invest in a way that offers you more capital protection than when you were still working, you don’t have to stop choosing investment options that offer more growth potential altogether. Consider investing in equities after you retire, even if they represent a smaller portion of your overall portfolio.
Another way you can protect yourself from inflation is by sticking to a budget. Having a budget today can help you save more for the future. In retirement, a budget can help you quickly identify areas where your expenses are increasing and make changes when necessary.
Some of your income sources are indexed and will automatically protect you from inflation. This means they go up over time to account for inflation. Fortunately, government benefits are indexed. The government performs regular reviews of the amounts payable and will adjust it over time to keep up with the cost of living.
CPP and QPP are reviewed and may be adjusted January 1 of every year, whereas OAS is reviewed and may be adjusted quarterly, or 4 times per year.
Slide 16:
The slide discusses the financial risks associated with longevity, particularly for Canadians who are living longer and needing to make money last longer. It highlights the increased risk of outliving savings and provides strategies to reduce longevity risk, such as planning to an older age, diversifying investment portfolios, taking only what is needed from savings, and considering investment options that provide guaranteed income payments. The source of the information is cited at the bottom of the slide.
Presenter: A recent study by the Office of the Superintendent of Financial Institutions found that half of Canadians who are now twenty years old will live to 90 and one of every ten of them will live to 100. While Canadians living longer is great news, it means that longevity risk is also increasing. Longevity risk is the risk you’ll outlive your savings.
Fortunately, there are things you can do to plan for a longer lifespan:
- The first tip is an easy one. When you’re figuring out how much you’ll need to save for retirement, do your calculations based on an older age. Rather than using for example 80 years old, try 90 or even 100.
- The next strategy is to diversify your investment portfolio. You won’t need all your savings immediately when you retire, so your investment strategy can factor in a mix of types of investments based on your timeline. Be sure to work with a licenced financial advisor to map out your investing plan if you are not comfortable doing this yourself.
- Consider the amount of savings you are accessing each year. The more money you draw down in your early retirement years, the less you will have for your future self. Access what you need and invest the rest.
- There are different ways to draw down your income in retirement. Registered retirement income funds (RRIFs), life income funds (LIFs) and annuities all have different features and benefits. Understand your options so you can make the right selections, or mix of selections, for your needs.
Slide 17:
The slide discusses the importance of selecting the appropriate asset mix for investment portfolios to avoid financial risks. It defines an asset class and an asset mix, emphasizing that an incorrect asset mix can hinder the achievement of financial goals. The slide suggests completing the Investment Personality Questionnaire at canadalife.com/ipq to reduce investment risks. The background image depicts an older couple in an outdoor setting.
Presenter: The last financial risk we’ll review today is asset mix risk.
Before we do, let’s define a couple terms, starting with asset class. An asset class is a group of similar investments based on what they invest in or how they earn returns. Equities, fixed income and cash and equivalents are all examples of asset classes. Your asset mix is the mix of different asset classes you have in your investment portfolio.
Asset mix risk is the risk that the asset mix of your portfolio isn’t in line with your goals. For example, if you’re invested too conservatively, your savings may not provide you with opportunities for growth. If you’re invested too aggressively, your savings may go through periods where the value is reduced and the amount of income you receive is less. Finding the right asset mix is important to ensuring you have the right investments to provide you with income in the short term and growth in the long term.
Review the Investment Personality Questionnaire on a regular basis to ensure your portfolio is properly diversified and aligned with your financial goals. You’ll find the Investment Personality Questionnaire by logging into your Canada Life account or by going to canadalife.com/IPQ.
Slide 18:
The slide titled "Investing in retirement" provides four key points about retirement investing: Continue investing to manage longevity and inflation risk, diversification is crucial in retirement, do not stop investing in equities when you retire, and choose investment options based on your risk tolerance, potential for return, and when you will need the money. The slide includes icons representing each point and a source citation from "Investing during retirement (canadalife.com)."
Presenter: When you retire, you may be tempted to move all your savings over to less volatile investments, like bonds or guaranteed investments. But remember, your retirement may last a long time, and you won’t need all your money at once. Having a strategy that plans for both withdrawals in retirement and keeping some of your funds invested while you don’t need them, can help you manage risks like longevity and inflation.
To do this, you’ll need a mix of investments, or in other words, a diversified portfolio, including equites. Equity investments have historically offered investors the strongest returns over the long-term and not investing in them at all could mean you’re missing out on opportunities to grow your savings.
Managed solutions, like investment funds, are an easy way to diversity. They can help you diversify your portfolio by sector, geography and asset class without the hassle or risk of purchasing and tracking individual investments on your own. There are solutions designed for every investor, including those designed specifically for investors in retirement.
Choosing which investment options make sense for you in your retirement will depend on many factors, including your comfort with risk, the potential for return, potential volatility, and when you’ll need to use the money. As mentioned on the previous slide, you can review your risk tolerance by completing the Investment Personality Questionnaire available on the Canada Life website.
Slide 19:
The slide emphasizes the importance of making financial wishes known, specifically through a "My financial life" file and estate planning. It includes a photograph of two individuals discussing documents.
Presenter: At any age it’s important to make your wishes known but as you get older it becomes even more critical. In this part of our session, we’ll talk about a few ways you can leave your financial instructions for your loved ones.
Slide 20:
The slide provides guidance on creating a secure "My Financial Life" file. It lists the types of documents to include, such as bank statements, life insurance policies, contribution notices, loan statements, and pre-planned burial arrangements. It also suggests contact information for a lawyer, accountant or tax specialist, and financial advisor or planner. Additionally, it emphasizes the importance of keeping the file in a secure location, such as a safety deposit box.
Presenter: Something everyone should do is create a "My financial life" file or folder that details important financial information and contacts. You’ll want to include things like your banking information, your investment accounts, loan information, receipts for major purchases, details of your insurance policies and any other relevant financial and lifestyle planning you've put in place. An easy way to keep it up to date is by picking a month to replace the statements in your file folder each year. Statements already include contact information, balances and other important account information.
Once you’ve created your file, be sure to keep it somewhere very secure. If you store it in a safety deposit box, inform your power of attorney or loved ones where of where they can find it.
Slide 21:
The slide titled "Estate planning" explains the benefits of estate planning through a bulleted list and an image. The list highlights that estate planning helps protect assets, avoid family conflict, ensure tax-efficient transfer of wealth, and meet obligations when passing. An image on the slide shows two individuals discussing documents, emphasizing the practical aspect of estate planning.
Presenter: Estate planning is another important aspect of making your wishes known. Estate planning is arranging your affairs so that when you die, your property is preserved and distributed the way you want.
Estate planning is important because it helps:
Minimize disputes over your assets between those you leave behind
Ensure your loved ones are taken care of
Minimize your tax liabilities
Work with legal and tax professionals to help you meet your estate planning needs.
Slide 22:
The slide titled "Estate planning – What’s included?" outlines key components of estate planning, divided into three categories: Will, Power of Attorney, and Naming Beneficiaries. It explains that a will determines the distribution of assets without a will according to law, a power of attorney authorizes a person to make financial or medical decisions, and naming beneficiaries involves reviewing and considering relationships for life events. The slide also notes that provincial and federal pension rules and family law may influence these decisions.
Presenter: Part of estate planning is creating a will. A will is a written document, almost always on paper although the law can allow for limited exceptions. After you die, it tells those you leave behind who will receive assets you owned at the time of your death. If you have minor children, it can also say who you’d like to be their guardian. A will can also communicate other instructions, like your funeral arrangements. If you die without a will, by Canadian law you’re said to have died “intestate” which means there are no detailed instructions on how you want to distribute your property. When this happens, each province or territory has its own rules on how a person’s estate will be administered and the assets distributed. This process can often be long, complicated and expensive.
You will also want to consider naming a power of attorney. A power of attorney is a signed, legal document that gives one or more people you trust, the authority to make decisions on your behalf. If age or illness changes your ability to make decisions, a power of attorney could be a very important part of your estate plan.
If your power of attorney’s authority is for financial matters and property, unless you stipulate limitations in the power of attorney document, they can:
Do your banking
Manage your investments
Collect money owed to you
Buy or sell real estate on your behalf
Purchase consumer items
Sign cheques and other documents for you when you can’t sign yourself
If your power of attorney’s authority is for healthcare or personal matters, and if you become incapable of doing so, they can make personal care decisions including healthcare and medical treatment, diet, housing, clothing, hygiene and safety.
Your power of attorney can’t write or change your will, change your life insurance beneficiary without court approval or grant a new power of attorney to another person on your behalf.
Even with a will in place, you’ll also want to name beneficiaries on your financial accounts and insurance policies. This will expedite the distribution of your assets upon your death. A beneficiary will receive the proceeds of your account or insurance policy very quickly and those dollars will not be included as an asset for the purpose of calculating your estate and taxes. It’s important to review your list of named beneficiaries whenever there’s a life event, such as a birth of a child, marriage, divorce or death. Not naming a beneficiary means that the assets will be paid to your estate.
Slide 23:
The slide promotes a service for creating a legal will online, highlighting a discounted rate for Canada Life plan members, access to a digital vault with unlimited edits, and the inclusion of attorney documents. It also offers estate planning services with personalized guidance and a 5% discount for Canada Life members. Additionally, the service provides free online executor support valued at $80. The slide features a background image of two people embracing and icons representing the services offered.
Presenter: The great news is that as a member of a Canada Life group savings plan, you receive an exclusive discount offer on wills and estate plan services. This online estate planning service gives you the ability to:
Create a legal will online at a one-time only discounted rate of $50+ HST (the regular price is usually $249+ HST).
They also offer:
For $19/year, access to a digital vault and unlimited edits to your will so you can make changes as your personal situation evolves
Includes power of attorney documents
Estate planning
Personalized guidance and support from estate experts
Preferred pricing with a 5% discount for services for Canada Life members
Executor support
Free online executor support for you or your appointed executor ($80 value)
Slide 24:
The slide provides instructions for accessing wills and estate planning services online through My Canada Life at Work. It outlines three steps: signing in, selecting options, and learning more about protecting your family's future. A screenshot of the My Canada Life interface highlights the "Protect your family’s future" section, which offers options for creating a will or planning an estate with professional guidance.
Presenter: To benefit from the discounted rates for wills and estate planning services, you must use the links provided within your account on My Canada Life at Work.
Go to the links under the “Options for you” tab when you sign in to learn more.
Slide 25:
The slide focuses on "Retirement readiness" and includes three key points: the retirement transition process, planning for a mentally healthy retirement, and a retirement checklist. An image of two people looking at a smartphone is on the left side.
Presenter: This brings us to the last topic of today’s webinar – retirement readiness and the retirement transition process.
Slide 26:
The slide outlines the retirement transition process for Canada Life, detailing five steps: receiving a retirement notice from the employer, Canada Life sending a package of options, selecting an option, notifying Canada Life, and finally transferring savings or income. The process is visually represented in a horizontal flowchart with each step numbered and color-coded.
Presenter: The first step is to notify your employer of your expected retirement date. Once you’ve notified your employer of your retirement date, they’ll reach out to Canada Life. This will prompt us to prepare an options package for you that you’ll receive once you’ve gotten your final pay cheque from your employer. In your package you'll find all the details that relate to your group savings plans, including your balances, specific retirement income options and any decision deadlines.
You’ll have time to review your options and work with your personal or group financial advisor. If you don’t have a financial advisor, there is a team of specialists at Canada Life available to assist you.
Slide 27:
The slide emphasizes the importance of working with a financial advisor to create a custom retirement savings plan. It provides a list of questions to consider when selecting an advisor, such as their qualifications, the products they offer, associated costs, investment philosophy, and how they can assist with retirement goals. The slide includes an image of two people in a meeting and cites the source of the information as "Meeting with an advisor (canadalife.com).”
Presenter: Some of us are comfortable and confident with the various steps and considerations leading into retirement and reviewing investments, the reality is that most of us are not. There are some important decisions to make when you are transitioning from working to retirement so be sure to work with licensed financial professionals to obtain investment and tax advice.
Be sure to work with professionals with whom you feel comfortable asking any and all questions, and that you trust their expertise and you feel knowledgeable and confident moving forward with your retirement plan.
Slide 28:
The slide titled "Planning for a mentally healthy retirement" outlines four key areas for consideration: Relationships and contribution, Living comfortably, Recreation, and Health and well-being. Each area is represented by an icon and a label. The slide emphasizes the importance of these aspects in planning for a mentally healthy retirement. The source of the information is cited at the bottom.
Presenter: You may be feeling financially prepared for your retirement but are you also feeling mentally prepared? We often dream of our retirement during our working years, but for some it can be a difficult transition. It’s important to also plan for a mentally healthy retirement.
According to Workplace Strategies for Mental Health, there are four key areas to plan for to assist with a mentally healthy retirement.
First, imagine your relationships . List the people you most want included in your life after retirement. What can you bring to their lives and what can they contribute to yours? Are there any people you would want to reconnect with when you have the time such as childhood friends or distant family? How can you contribute to your loved ones lives? Or in other words, what could you do that they might appreciate and that you may not have been able to do while you were working.
Next, consider the sustainability of your current living arrangements from several perspectives such as upkeep, financial demands, physical demands, access to transportation, proximity to family and friends and access to healthcare. Also consider that wait times for retirement residences may be lengthy, if this is part of your plan consider applying well in advance. Lastly, if you ever want to augment your income in retirement, list the skills you have acquired over the years and consider how these might be applied to future part-time, casual or consulting work.
Recreation is important for your physical health but don’t overlook its importance on your mental health. List the activities you would find enjoyable on your own, such as walking, travel, pets, etc. as well as activities and hobbies to enjoy with others.
Lastly, under health and well-being, think about your daily routine. Supporting both your physical and mental health should be factored into it. How do you want to feel most mornings when you wake up? How do you want to feel most evenings when you are ready to sleep?
For more details about planning for a mentally healthy retirement, check out the Workplace Strategies for Mental Health. It’s an online resource available to all Canadians at no cost courtesy of Canada Life. On it you can find a Retiring Well Questionnaire to help guide you through the non-financial aspects of retirement.
Slide 29:
The slide presents a "Retirement checklist" with four key actions employees should take as they approach retirement. These actions include notifying their employer, reviewing group and personal savings, updating beneficiary information, and applying for government benefits. The slide features a red background with white text and icons, and includes a crown icon above the title .
Presenter: Lets wrap up today’s session with a checklist you can use to make sure you’re retirement-ready.
The first thing on the checklist is to notify your employer that you’re retiring, ideally up to a year in advance.
Next is to review your beneficiaries on all plans, policies and wills. And don't forget about your investments. Are there adjustments to be made?
Finally, if you’re approaching retirement and you haven't done so already, apply for government benefits so the process can get started well before you expect to receive your first payments.
Slide 30:
The slide provides information on tools, resources, and support available from Canada Life. It includes contact details for Canada Life's tech and customer service lines, a member website URL, and resources for retirement education such as articles, calculators, videos, and links to external resources. The slide also features a logo and a background image of a person using a tablet.
Presenter: When it comes to retiring there’s a lot of information to review and decisions to make. Fortunately, there’s plenty of support available to you as a Canada Life group savings plan member.
For help, call our main support line at 1-800-724-3402.
To create a retirement goal, research and/or change your investment options, access your statements and more, sign in to mycanadalifeatwork.com.
And, if you want to keep learning more about key steps and important considerations as you are getting close to retirement, visit canadalife.com/smartpath where you’ll find articles, videos and calculators to support you in your retirement readiness journey.
Slide 31:
The slide provides contact information for questions, featuring a phone number (1-800-724-3402) and a website (mycanadalifeatwork.com). It includes a disclaimer about the general nature of the information and trademarks by The Canada Life Assurance Company. The slide has a teal background with a white text box on the left containing the word "Questions?" and a speech bubble icon on the bottom left.
Presenter: Thank you for joining us today! I hope you have some take aways and considerations as you countdown to your retirement.
Description:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: The slide features a photograph of a person working on pottery in a studio, with the text "Retirement Getting close" prominently displayed in red and white.
Presenter: Hi Everyone and welcome to the Retirement – getting close webinar!
Slide 2: The slide presents statistics about Canadians' perspectives on retirement. It highlights that 54% of Canadians see retirement as a new chapter in their lives, while 55% of retirees and pre-retirees aim to balance work and leisure. The slide includes sources for these statistics.
Presenter: Retirement is changing. We’re living longer, healthier lives which means there are more opportunities for our retired years than ever before.
In fact, many Canadians no longer see retirement as a time to solely focus on relaxation and winding down. A survey found that 54% of Canadians who are retired, or are close to retirement, see it as a new chapter in their lives. 55% of retirees and pre-retirees even plan to keep working in some capacity and want a balance of work and leisure in their retired life.
Today’s session will help you plan for a retirement that’s full of possibilities.
Slide 3:
The slide presents an agenda for a retirement-related presentation. The agenda includes four main topics: sources of retirement income, financial risks in retirement, making your wishes known, and retirement readiness. The slide features a red background with white text and a simple icon of six people in a circle.
Presenter: Here are the topics we’ll cover:
-We’ll start with a review of the different income sources you may be able to draw on in retirement.
- Then, we’ll review some of the key financial risks in retirement that you may be faced with. Knowing the risks can help you plan to minimize them.
- Making your wishes known to your loved ones is another important consideration as you age.
- Finally, we’ll talk about some steps you can take to make sure you’re ready to retire when the time comes.
Slide 4:
The slide outlines three sources of retirement income: government benefits, employer-sponsored plans, and personal savings. It includes a photograph of two people, one of whom is holding a tablet.
Presenter: In Canada, there are three main sources of retirement income.
The first are government benefits. They include programs like the Canada Pension Plan (known as CPP) for most Canadians, or the Québec Pension Plan (known as QPP) for those working in Quebec. The amount of CPP or QPP you can expect to receive will depend on your average earnings, what you’ve contributed while working and the age you start receiving it.
Government benefits also includes Old Age Security (or OAS). OAS benefits are based on the number of years you’ve lived in Canada after turning 18. You need to live in Canada for at least 10 years to receive it.
The next income source is savings you’ve accumulated in an employer-sponsored plan – like the one you have with Canada Life. The saving options are different from plan to plan, so it’s important to speak with your plan administrator to learn about the options available to you. Some plans even include employer contributions, where your employer saves on your behalf or matches a portion of what you save.
Finally, the third source of retirement income is personal savings. Personal savings can come from a variety of sources, like a registered retirement savings plan you have at your bank, money you have in a savings account or even a rental property you own.
Slide 5:
The slide titled "Sources of retirement income" illustrates the financial needs for income replacement during working and retirement years. It shows that earned income covers expenses during working years, while retirement years require income from personal savings, employer-sponsored plans, and government benefits to cover expenses. The slide emphasizes the importance of these sources in meeting financial needs during retirement.
Presenter: There are some common misconceptions about the different income sources. One common example is that government benefits will fully replace employment income when you retire. The reality is that they’re only designed to cover a portion of your income. The same goes for employer-sponsored plans. The amount they provide you with depends on how much you and your employer contribute while you’re still working and how much your savings grow over time. This slide shows how the three different income sources can work together to help you meet your expenses in retirement.
As you can see, even if you have savings in both an employer-sponsored plan and receive government benefits, you still may need additional income from personal savings to replace your income and cover all your expenses. This is why planning ahead and carving out personal savings is so important.
Slide 6:
The slide addresses the question, "How much do I need to save?" in the context of retirement. It lists several key considerations for retirement savings, including retirement age, housing, family considerations, transportation, obligations, legacy, continuing to work, and outstanding debt. Each consideration is accompanied by a relevant icon.
Presenter: While many of us will need to rely at least in part on our personal savings in retirement, the amount you need to save is different for everyone. It all depends on your plans for retirement and your personal situation. Things like your retirement age, how much you want to leave behind to loved ones to inherit and whether you plan to continue working part time, all have a big impact on how much you’ll need to save.
That’s why creating a retirement budget based on your individual circumstances is such an important step in the planning process.
Slide 7:
The slide titled "Imagine your retirement" presents four key questions to consider for retirement planning: What will give a sense of purpose when I retire? Do I want to stay in the community I’m living in or move somewhere else? Will I downsize my home? Will I continue to work after I retire? The slide features a background image of a person on a sailboat.
Presenter: When creating a budget for your retirement, start by imagining the retirement you’d like to have.
Here are some questions you can ask yourself to get started:
What will give me a sense of purpose when I retire?
Do I want to stay in the community I’m living in or move somewhere else?
Will I downsize my home?
Will I start a business after I retire or keep working part-time after I retire?
Slide 8:
The slide titled "Imagine your retirement" presents a list of reflective questions about retirement planning, including travel plans, staying engaged with important people, participating in activities, and financial considerations. The slide features a background image of a person on a sailboat.
Presenter:
What are my travel plans?
How will I stay engaged with the people who are most important to me?
What activities will I participate in?
Do I want to spend all my money or leave an inheritance for my loved ones?
The answers to these questions will help you determine how much income you’ll need to have to live the retirement lifestyle you envision for yourself. If you have a partner, be sure to involve them in the planning process.
Slide 9:
The slide provides instructions on how to set a retirement income goal using the "My Canada Life at Work" tool. It includes a screenshot of the web interface, showing the main "Overview" screen with options for contributions, savings, and resources. The interface displays a summary of savings and retirement goals, with a specific section on how to set retirement goals. The slide emphasizes the importance of planning for retirement and provides a visual guide to accessing the retirement goal tool.
Presenter: Once you’ve made a retirement budget, you can use the retirement goal tool on My Canada Life at Work to help you figure out how much you need to save. You can access it from the main Overview screen. Select Set my goal to get started.
Slide 10:
The slide provides instructions for managing a Canada Life group savings plan through the "My Canada Life at Work" portal. It instructs users to sign in using their Access ID and password and offers assistance via a tech line available Monday to Friday, 8 a.m. to 8 p.m. ET. The contact number for the tech line is 1-888-222-0775. The slide features a simple design with a dark gray background and white text, accompanied by a small icon of a laptop and document.
Presenter: If you’re not familiar with My Canada Life at Work, it’s your go-to website to manage your Canada Life group savings plan. In addition to using this tool, you can use it to retrieve statements, choose investments, add a beneficiary and more. If you have trouble signing in, give our tech line a call for help at 1-888-222-0775.
Slide 11:
The slide presents the results of a retirement goal tool from "Canada Life." It shows that the user has $4,158 estimated monthly retirement income and a $2,929 retirement income goal. The user is on track but is advised to keep saving and contribute more to retire earlier. The slide includes a bar chart comparing current and goal income and expenses, and it provides options to change personal information or save the goal.
Presenter: Once you’re done inputting all your information into the tool, it will give you one of two results.
The first is “Congratulations! You’re on track”. This means based on the information you’ve entered, the amount you’re saving will be enough to reach your retirement income goals. You can save your results and keep the calculator updated over time as things change.
The other result is “Save more to reach your goal!”. If you get this result, it doesn’t mean it’s time to panic. It means it’s time to review your strategy so you can make changes today that will get you closer to your savings goal and the retirement you dream for yourself. With the “Save more” result, the tool will let you know how much more you’ll need to save each month to reach your income goals.
Slide 12:
The slide emphasizes the importance of planning ahead for possible risks in retirement. It lists key financial risks such as debt, inflation, longevity, and asset mix. It also highlights the importance of investing in retirement. The slide includes an image of two people looking at a tablet, suggesting a focus on financial planning.
Presenter: Next, let’s talk about some of the risks you’ll face in retirement and ways you can invest to help manage them.
Slide 13:
The slide discusses the financial risks associated with debt, particularly focusing on the challenges retirees face due to reduced or fixed income. It highlights that repaying debt can be more difficult and harder to cope with when interest rates increase. To reduce the risk of debt, it suggests understanding the terms and conditions of debts, paying off as much as possible before retirement, creating a budget to avoid taking on more debt, and seeking help from credit counseling services if needed.
Presenter: The first risk is one you’re probably familiar with. It’s debt.
Debt is the amount of money you owe to whoever lent it to you. Usually, you’re required to pay interest in addition to the amount you owe when it comes time to repay it. Mortgages, car loans, credit cards and lines of credit are all examples of debt. We often hear of “good debt” and “bad debt”, but when you retire, any debt can be risky. This is because when you retire you may be living off a reduced or fixed income. While your income may be fairly stable, if the terms of your debt change, it could become difficult for you to make your payments. Think of recent mortgage rate increases. These increases cost some Canadians hundreds of dollars more each month. When you’re not working, those changes may be hard to compensate for.
Here are some things you can do to reduce the risk of debt in retirement:
- Review the terms and conditions of your debts, including how much you’re required to pay each month, the interest rates and if you’ll be required to pay it off at any point.
- Pay off as much of your debt as you can before you retire. You’ll want consider which debts have the highest rates and which ones have the biggest repayment requirements when you’re deciding what to pay first.
- Make a budget for today and retirement. Having a budget can help to keep your spending on track and avoid getting into more debt. It can also help you uncover areas where you can spend less and use the money to repay your debt.
- Finally, get help from credit counselling services if you need it.
Slide 14:
The slide provides information on credit counseling services available for members. It features two websites: "nomoredebts.org" with a contact number of 1-877-636-8999, and "solveyourdebts.com" with a contact number of 1-888-753-2227. The slide includes images of the websites' homepages and provides the relevant URLs and contact details for accessing these services.
Presenter: Since we’re on the topic of credit counselling, did you know that one of the perks of your Canada Life group savings plan is free access to support from credit counseling services?
Through these services you can get:
Help making a budget
Financial advice based on your situation
Tips to bring your budget in line with your goals
An action plan
Referrals to other services, if needed
If debt is something you’re struggling with, don’t hesitate to reach out and get help.
Slide 15:
The slide discusses the financial risks associated with inflation, particularly for retirees. It explains that inflation risk refers to the potential decrease in purchasing power over time as prices rise. Retirees may find that their income does not keep up with inflation. To protect against inflation risk, the slide suggests continuing to invest in retirement, reviewing and adjusting the retirement budget, and considering that some retirement income sources may increase over time to compensate for inflation. The source of this information is cited at the bottom of the slide.
Presenter: The next financial risk in retirement is inflation.
Inflation is the increase of prices over time. Recent increases of food prices is a good example of inflation. Just think of how much more a trip to the grocery store costs you now compared to before the pandemic. In fact, a recent study found 78% of Canadians feel their personal finances have worsened due to inflation.
The risk of inflation in retirement is that your purchasing power will reduce as prices go up while your income stays the same. You might eventually find that your income doesn’t stretch as far as it once did. There are a few things you can do to protect yourself from the impacts of inflation in retirement.
The first is to keep investing your money when you retire. While you’ll want to invest in a way that offers you more capital protection than when you were still working, you don’t have to stop choosing investment options that offer more growth potential altogether. Consider investing in equities after you retire, even if they represent a smaller portion of your overall portfolio.
Another way you can protect yourself from inflation is by sticking to a budget. Having a budget today can help you save more for the future. In retirement, a budget can help you quickly identify areas where your expenses are increasing and make changes when necessary.
Some of your income sources are indexed and will automatically protect you from inflation. This means they go up over time to account for inflation. Fortunately, government benefits are indexed. The government performs regular reviews of the amounts payable and will adjust it over time to keep up with the cost of living.
CPP and QPP are reviewed and may be adjusted January 1 of every year, whereas OAS is reviewed and may be adjusted quarterly, or 4 times per year.
Slide 16:
The slide discusses the financial risks associated with longevity, particularly for Canadians who are living longer and needing to make money last longer. It highlights the increased risk of outliving savings and provides strategies to reduce longevity risk, such as planning to an older age, diversifying investment portfolios, taking only what is needed from savings, and considering investment options that provide guaranteed income payments. The source of the information is cited at the bottom of the slide.
Presenter: A recent study by the Office of the Superintendent of Financial Institutions found that half of Canadians who are now twenty years old will live to 90 and one of every ten of them will live to 100. While Canadians living longer is great news, it means that longevity risk is also increasing. Longevity risk is the risk you’ll outlive your savings.
Fortunately, there are things you can do to plan for a longer lifespan:
- The first tip is an easy one. When you’re figuring out how much you’ll need to save for retirement, do your calculations based on an older age. Rather than using for example 80 years old, try 90 or even 100.
- The next strategy is to diversify your investment portfolio. You won’t need all your savings immediately when you retire, so your investment strategy can factor in a mix of types of investments based on your timeline. Be sure to work with a licenced financial advisor to map out your investing plan if you are not comfortable doing this yourself.
- Consider the amount of savings you are accessing each year. The more money you draw down in your early retirement years, the less you will have for your future self. Access what you need and invest the rest.
- There are different ways to draw down your income in retirement. Registered retirement income funds (RRIFs), life income funds (LIFs) and annuities all have different features and benefits. Understand your options so you can make the right selections, or mix of selections, for your needs.
Slide 17:
The slide discusses the importance of selecting the appropriate asset mix for investment portfolios to avoid financial risks. It defines an asset class and an asset mix, emphasizing that an incorrect asset mix can hinder the achievement of financial goals. The slide suggests completing the Investment Personality Questionnaire at canadalife.com/ipq to reduce investment risks. The background image depicts an older couple in an outdoor setting.
Presenter: The last financial risk we’ll review today is asset mix risk.
Before we do, let’s define a couple terms, starting with asset class. An asset class is a group of similar investments based on what they invest in or how they earn returns. Equities, fixed income and cash and equivalents are all examples of asset classes. Your asset mix is the mix of different asset classes you have in your investment portfolio.
Asset mix risk is the risk that the asset mix of your portfolio isn’t in line with your goals. For example, if you’re invested too conservatively, your savings may not provide you with opportunities for growth. If you’re invested too aggressively, your savings may go through periods where the value is reduced and the amount of income you receive is less. Finding the right asset mix is important to ensuring you have the right investments to provide you with income in the short term and growth in the long term.
Review the Investment Personality Questionnaire on a regular basis to ensure your portfolio is properly diversified and aligned with your financial goals. You’ll find the Investment Personality Questionnaire by logging into your Canada Life account or by going to canadalife.com/IPQ.
Slide 18:
The slide titled "Investing in retirement" provides four key points about retirement investing: Continue investing to manage longevity and inflation risk, diversification is crucial in retirement, do not stop investing in equities when you retire, and choose investment options based on your risk tolerance, potential for return, and when you will need the money. The slide includes icons representing each point and a source citation from "Investing during retirement (canadalife.com)."
Presenter: When you retire, you may be tempted to move all your savings over to less volatile investments, like bonds or guaranteed investments. But remember, your retirement may last a long time, and you won’t need all your money at once. Having a strategy that plans for both withdrawals in retirement and keeping some of your funds invested while you don’t need them, can help you manage risks like longevity and inflation.
To do this, you’ll need a mix of investments, or in other words, a diversified portfolio, including equites. Equity investments have historically offered investors the strongest returns over the long-term and not investing in them at all could mean you’re missing out on opportunities to grow your savings.
Managed solutions, like investment funds, are an easy way to diversity. They can help you diversify your portfolio by sector, geography and asset class without the hassle or risk of purchasing and tracking individual investments on your own. There are solutions designed for every investor, including those designed specifically for investors in retirement.
Choosing which investment options make sense for you in your retirement will depend on many factors, including your comfort with risk, the potential for return, potential volatility, and when you’ll need to use the money. As mentioned on the previous slide, you can review your risk tolerance by completing the Investment Personality Questionnaire available on the Canada Life website.
Slide 19:
The slide emphasizes the importance of making financial wishes known, specifically through a "My financial life" file and estate planning. It includes a photograph of two individuals discussing documents.
Presenter: At any age it’s important to make your wishes known but as you get older it becomes even more critical. In this part of our session, we’ll talk about a few ways you can leave your financial instructions for your loved ones.
Slide 20:
The slide provides guidance on creating a secure "My Financial Life" file. It lists the types of documents to include, such as bank statements, life insurance policies, contribution notices, loan statements, and pre-planned burial arrangements. It also suggests contact information for a lawyer, accountant or tax specialist, and financial advisor or planner. Additionally, it emphasizes the importance of keeping the file in a secure location, such as a safety deposit box.
Presenter: Something everyone should do is create a "My financial life" file or folder that details important financial information and contacts. You’ll want to include things like your banking information, your investment accounts, loan information, receipts for major purchases, details of your insurance policies and any other relevant financial and lifestyle planning you've put in place. An easy way to keep it up to date is by picking a month to replace the statements in your file folder each year. Statements already include contact information, balances and other important account information.
Once you’ve created your file, be sure to keep it somewhere very secure. If you store it in a safety deposit box, inform your power of attorney or loved ones where of where they can find it.
Slide 21:
The slide titled "Estate planning" explains the benefits of estate planning through a bulleted list and an image. The list highlights that estate planning helps protect assets, avoid family conflict, ensure tax-efficient transfer of wealth, and meet obligations when passing. An image on the slide shows two individuals discussing documents, emphasizing the practical aspect of estate planning.
Presenter: Estate planning is another important aspect of making your wishes known. Estate planning is arranging your affairs so that when you die, your property is preserved and distributed the way you want.
Estate planning is important because it helps:
Minimize disputes over your assets between those you leave behind
Ensure your loved ones are taken care of
Minimize your tax liabilities
Work with legal and tax professionals to help you meet your estate planning needs.
Slide 22:
The slide titled "Estate planning – What’s included?" outlines key components of estate planning, divided into three categories: Will, Power of Attorney, and Naming Beneficiaries. It explains that a will determines the distribution of assets without a will according to law, a power of attorney authorizes a person to make financial or medical decisions, and naming beneficiaries involves reviewing and considering relationships for life events. The slide also notes that provincial and federal pension rules and family law may influence these decisions.
Presenter: Part of estate planning is creating a will. A will is a written document, almost always on paper although the law can allow for limited exceptions. After you die, it tells those you leave behind who will receive assets you owned at the time of your death. If you have minor children, it can also say who you’d like to be their guardian. A will can also communicate other instructions, like your funeral arrangements. If you die without a will, by Canadian law you’re said to have died “intestate” which means there are no detailed instructions on how you want to distribute your property. When this happens, each province or territory has its own rules on how a person’s estate will be administered and the assets distributed. This process can often be long, complicated and expensive.
You will also want to consider naming a power of attorney. A power of attorney is a signed, legal document that gives one or more people you trust, the authority to make decisions on your behalf. If age or illness changes your ability to make decisions, a power of attorney could be a very important part of your estate plan.
If your power of attorney’s authority is for financial matters and property, unless you stipulate limitations in the power of attorney document, they can:
Do your banking
Manage your investments
Collect money owed to you
Buy or sell real estate on your behalf
Purchase consumer items
Sign cheques and other documents for you when you can’t sign yourself
If your power of attorney’s authority is for healthcare or personal matters, and if you become incapable of doing so, they can make personal care decisions including healthcare and medical treatment, diet, housing, clothing, hygiene and safety.
Your power of attorney can’t write or change your will, change your life insurance beneficiary without court approval or grant a new power of attorney to another person on your behalf.
Even with a will in place, you’ll also want to name beneficiaries on your financial accounts and insurance policies. This will expedite the distribution of your assets upon your death. A beneficiary will receive the proceeds of your account or insurance policy very quickly and those dollars will not be included as an asset for the purpose of calculating your estate and taxes. It’s important to review your list of named beneficiaries whenever there’s a life event, such as a birth of a child, marriage, divorce or death. Not naming a beneficiary means that the assets will be paid to your estate.
Slide 23:
The slide promotes a service for creating a legal will online, highlighting a discounted rate for Canada Life plan members, access to a digital vault with unlimited edits, and the inclusion of attorney documents. It also offers estate planning services with personalized guidance and a 5% discount for Canada Life members. Additionally, the service provides free online executor support valued at $80. The slide features a background image of two people embracing and icons representing the services offered.
Presenter: The great news is that as a member of a Canada Life group savings plan, you receive an exclusive discount offer on wills and estate plan services. This online estate planning service gives you the ability to:
Create a legal will online at a one-time only discounted rate of $50+ HST (the regular price is usually $249+ HST).
They also offer:
For $19/year, access to a digital vault and unlimited edits to your will so you can make changes as your personal situation evolves
Includes power of attorney documents
Estate planning
Personalized guidance and support from estate experts
Preferred pricing with a 5% discount for services for Canada Life members
Executor support
Free online executor support for you or your appointed executor ($80 value)
Slide 24:
The slide provides instructions for accessing wills and estate planning services online through My Canada Life at Work. It outlines three steps: signing in, selecting options, and learning more about protecting your family's future. A screenshot of the My Canada Life interface highlights the "Protect your family’s future" section, which offers options for creating a will or planning an estate with professional guidance.
Presenter: To benefit from the discounted rates for wills and estate planning services, you must use the links provided within your account on My Canada Life at Work.
Go to the links under the “Options for you” tab when you sign in to learn more.
Slide 25:
The slide focuses on "Retirement readiness" and includes three key points: the retirement transition process, planning for a mentally healthy retirement, and a retirement checklist. An image of two people looking at a smartphone is on the left side.
Presenter: This brings us to the last topic of today’s webinar – retirement readiness and the retirement transition process.
Slide 26:
The slide outlines the retirement transition process for Canada Life, detailing five steps: receiving a retirement notice from the employer, Canada Life sending a package of options, selecting an option, notifying Canada Life, and finally transferring savings or income. The process is visually represented in a horizontal flowchart with each step numbered and color-coded.
Presenter: The first step is to notify your employer of your expected retirement date. Once you’ve notified your employer of your retirement date, they’ll reach out to Canada Life. This will prompt us to prepare an options package for you that you’ll receive once you’ve gotten your final pay cheque from your employer. In your package you'll find all the details that relate to your group savings plans, including your balances, specific retirement income options and any decision deadlines.
You’ll have time to review your options and work with your personal or group financial advisor. If you don’t have a financial advisor, there is a team of specialists at Canada Life available to assist you.
Slide 27:
The slide emphasizes the importance of working with a financial advisor to create a custom retirement savings plan. It provides a list of questions to consider when selecting an advisor, such as their qualifications, the products they offer, associated costs, investment philosophy, and how they can assist with retirement goals. The slide includes an image of two people in a meeting and cites the source of the information as "Meeting with an advisor (canadalife.com).”
Presenter: Some of us are comfortable and confident with the various steps and considerations leading into retirement and reviewing investments, the reality is that most of us are not. There are some important decisions to make when you are transitioning from working to retirement so be sure to work with licensed financial professionals to obtain investment and tax advice.
Be sure to work with professionals with whom you feel comfortable asking any and all questions, and that you trust their expertise and you feel knowledgeable and confident moving forward with your retirement plan.
Slide 28:
The slide titled "Planning for a mentally healthy retirement" outlines four key areas for consideration: Relationships and contribution, Living comfortably, Recreation, and Health and well-being. Each area is represented by an icon and a label. The slide emphasizes the importance of these aspects in planning for a mentally healthy retirement. The source of the information is cited at the bottom.
Presenter: You may be feeling financially prepared for your retirement but are you also feeling mentally prepared? We often dream of our retirement during our working years, but for some it can be a difficult transition. It’s important to also plan for a mentally healthy retirement.
According to Workplace Strategies for Mental Health, there are four key areas to plan for to assist with a mentally healthy retirement.
First, imagine your relationships . List the people you most want included in your life after retirement. What can you bring to their lives and what can they contribute to yours? Are there any people you would want to reconnect with when you have the time such as childhood friends or distant family? How can you contribute to your loved ones lives? Or in other words, what could you do that they might appreciate and that you may not have been able to do while you were working.
Next, consider the sustainability of your current living arrangements from several perspectives such as upkeep, financial demands, physical demands, access to transportation, proximity to family and friends and access to healthcare. Also consider that wait times for retirement residences may be lengthy, if this is part of your plan consider applying well in advance. Lastly, if you ever want to augment your income in retirement, list the skills you have acquired over the years and consider how these might be applied to future part-time, casual or consulting work.
Recreation is important for your physical health but don’t overlook its importance on your mental health. List the activities you would find enjoyable on your own, such as walking, travel, pets, etc. as well as activities and hobbies to enjoy with others.
Lastly, under health and well-being, think about your daily routine. Supporting both your physical and mental health should be factored into it. How do you want to feel most mornings when you wake up? How do you want to feel most evenings when you are ready to sleep?
For more details about planning for a mentally healthy retirement, check out the Workplace Strategies for Mental Health. It’s an online resource available to all Canadians at no cost courtesy of Canada Life. On it you can find a Retiring Well Questionnaire to help guide you through the non-financial aspects of retirement.
Slide 29:
The slide presents a "Retirement checklist" with four key actions employees should take as they approach retirement. These actions include notifying their employer, reviewing group and personal savings, updating beneficiary information, and applying for government benefits. The slide features a red background with white text and icons, and includes a crown icon above the title .
Presenter: Lets wrap up today’s session with a checklist you can use to make sure you’re retirement-ready.
The first thing on the checklist is to notify your employer that you’re retiring, ideally up to a year in advance.
Next is to review your beneficiaries on all plans, policies and wills. And don't forget about your investments. Are there adjustments to be made?
Finally, if you’re approaching retirement and you haven't done so already, apply for government benefits so the process can get started well before you expect to receive your first payments.
Slide 30:
The slide provides information on tools, resources, and support available from Canada Life. It includes contact details for Canada Life's tech and customer service lines, a member website URL, and resources for retirement education such as articles, calculators, videos, and links to external resources. The slide also features a logo and a background image of a person using a tablet.
Presenter: When it comes to retiring there’s a lot of information to review and decisions to make. Fortunately, there’s plenty of support available to you as a Canada Life group savings plan member.
For help, call our main support line at 1-800-724-3402.
To create a retirement goal, research and/or change your investment options, access your statements and more, sign in to mycanadalifeatwork.com.
And, if you want to keep learning more about key steps and important considerations as you are getting close to retirement, visit canadalife.com/smartpath where you’ll find articles, videos and calculators to support you in your retirement readiness journey.
Slide 31:
The slide provides contact information for questions, featuring a phone number (1-800-724-3402) and a website (mycanadalifeatwork.com). It includes a disclaimer about the general nature of the information and trademarks by The Canada Life Assurance Company. The slide has a teal background with a white text box on the left containing the word "Questions?" and a speech bubble icon on the bottom left.
Presenter: Thank you for joining us today! I hope you have some take aways and considerations as you countdown to your retirement.
Whether you’re just starting to save or want to make sure you’re on track, this webinar will help you better understand saving for retirement
Learn more about:
- The different sources of retirement income
- How much to save
- Ways your group savings plan can help you save more, faster
Description:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Retirement – Saving for your future
Cover slide introducing the presentation on retirement planning and savings. The cover photo shows an older couple fishing.
Presenter:
Hi and welcome to the retirement – saving for your future webinar.
Slide 2: Canadians and our retirement savings
Highlights key statistics: 47% of Canadian workers worry about running out of money in retirement. Only 35% of Canadians aged 50+ can afford to retire when they want. Rising housing costs are delaying retirement savings.
Presenter:
If you’re one of the many Canadians worried about saving for retirement, you’re not alone. [click] 47% of Canadian workers worry about running out of money in retirement. [click] Only 35% of working Canadians aged 50+ can afford to retire when they want to. [click] And Canadians with rent and mortgage payments are delaying retirement savings altogether. The good news for each of you is that you have a workplace savings plan that can help alleviate some of these concerns.
Slide 3: Agenda Outlines the presentation topics:
• Where can my retirement income come from?• How much do I need to save? • How can my group retirement and savings plan help me save? The slide also includes a photo of an elderly woman smiling, positioned to the left of the agenda.
Presenter:
Our goal in today’s webinar is to share information about your potential retirement income sources, how you can evaluate your retirement saving strategy, and the potential next steps you can take to be confident saving for the retirement lifestyle that is right for you.
Slide 4: Sources of retirement income
Breaks down income into public and private sources: Public: OAS and CPP/QPP Private: Workplace savings plans and personal savings Visual description: A two-column layout showing public vs. private income sources.
Presenter: When planning for retirement, it’s important to understand the different potential sources of retirement income. This includes both public and private sources. Public, or government plans, include Old Age Security and the Canada Pension Plan or if you live in Quebec, the Québec Pension Plan. Retirement income from private plans include workplace savings plans and your own personal savings. Let’s take a closer look at each of these sources to ensure you understand how they will work for you during your retirement years.
Slide 5: CPP and QPP overview
Explains: CPP/QPP can start between ages 60–70 (72 for QPP). Benefits are taxable. Based on age, contributions, and average earnings. Maximum monthly payment: $1,364.60; average: $815 (as of July 2024).
Presenter:
CPP is a contributory public pension plan that provides a basic level of earnings in retirement for workers throughout Canada – except for Quebec. Workers in Quebec are covered by QPP, which provides similar benefits. These are taxable benefits and are adjusted annually. The amount you’ll receive from these benefits depends on your average earnings throughout your working life, including how much you’ve contributed while working, and the age you decide to start receiving your CPP or QPP benefit. For this year, the maximum monthly benefit amount you could receive, as a new recipient starting at age 65, is $1,364. It’s important that you keep in mind, not everyone will be eligible for this maximum amount. Your individual situation will determine how much you'll receive. You can get your estimate of your monthly CPP payments by logging into your My Service Canada Account. Or go to My Account with Retraite Quebec to get an estimate for QPP payments.
Slide 6: CPP and QPP contribution rates
Outlines contribution tiers: 0% on first $3,500 5.95% on $3,500.01–$68,500 4% on $68,500.01–$73,200 0% above $73,200
Presenter:
Originally, CPP and QPP were designed to replace 25% of the average working wage. Eventually this amount will be increased to 33% of the average working wage. Similar to how there are tax brackets for income taxes, there are now contribution thresholds: The first $3,500 of your yearly earnings continues to be exempt from CPP and QPP contributions. The next $3,500 to $68,000 of your earnings has a contribution rate of 5.95%. The new second level of contributions was introduced on January 1, 2024. For earnings you make between $68,500 and $73,200 the contribution rate is 4%. Earnings over $73,200 are exempt from contributions. Your employer matches the CPP or QPP and CPP2 or QPP2 contributions you make. The remaining changes to CPP and QPP will be phased-in in 2025 with the CPP2 and QPP2 amounts increasing to14% above the amount of the first earnings ceiling. The thresholds are updated annually.
Slide 7: When will CPP/QPP start?
Shows impact of starting early or late: 0.6% monthly reduction before 65 (up to -36%) 0.7% monthly increase after 65 (up to +42%) Example: Jean receives $815 at 65, $521.60 at 60, $1,157.30 at 70 Presenter: The age you start receiving CPP or QPP effects how much you’ll get. You can start receiving benefits when you’re 60 and defer them until you’re 70. If you apply to take your CPP/QPP before you’re 65, your benefit amount will be reduced by 0.60% for every month you take it early. If you wait to start taking benefits until after you’re 65, the amount you’ll get will increase by 0.70% for every month you delay. There’s no one answer that would be applicable to everyone regarding when you should start receiving these benefits. It will all depend on your individual plans and circumstances that includes your health and other retirment income resources. Let’s review an example.
[CLICK] Jean is eligible to receive the average CPP amount at age 65, which is $815.00 [CLICK] If Jean applies to take the benefit at age 60 the monthly amount payable is reduced by 36% to $485.32. [CLICK] If Jean waits until age 70, the amount increases by 42% to $1,076.81 per month
Slide 8: OAS overview
Explains: Starts between ages 65–70 Taxable Based on residency and income Maximum monthly payment: $727.67 (Oct–Dec 2024)
Presenter:
Next, let’s review Old Age Security, or OAS. OAS is a benefit available at age 65. The amount you receive is based on the number of years you’ve lived in Canada after the age of 18. So, if you’ve been a resident for 40 years, you’ll receive the maximum. If it's less than 40 years you may get a partial benefit. You must be a resident for at least 10 years to receive any OAS. It’s also important to note that OAS is income tested and the OAS recovery tax, more commonly known as the Clawback, may be implemented. In 2024, if your net world income exceeds $90,997 you may be eligible for less OAS next year. Once your net world income exceed $148,065, you will may not be eligible to receive any OAS in the following year. The minimum and maximum amounts are adjusted each year. When you reach 75, your OAS payments will automatically be increased by 10%. OAS is a taxable benefit, and the amount payable is reviewed and potentially adjusted by the government four times a year to keep up with the current cost of living.
Slide 9: When does OAS start?
Cannot start before 65 Increases 0.6% monthly after 65 (up to +36%) Example: Jean receives $727.67 at 65, $989.63 at 70 Presenter: Similar to CPP and QPP, one of the factors that can affect how much OAS benefits you get is when you take it. The earliest you can start receiving OAS payments is 65. You can delay taking it until you’re 70. If you decide to delay taking the payments the benefit amount increases by 0.6% for each month you delay taking it after you turn 65. Let’s take another look at Jean.
[CLICK]
Jean has lived in Canada for their entire life and is eligible to receive the maximum OAS amount at age 65, which is $727.67 [CLICK] A quick reminder that if Jean wanted to receive OAS at age 60 that isn’t an option. [CLICK] If Jean waits until age 70 Jean’s amount is increased by 36% and is $989.63 per month.
Slide 10: Types of private retirement savings plans
Lists workplace and individual plans: RRSP, TFSA, NRSP RPP, DPSP Presenter: Government benefits likely won’t be enough to cover all your expenses in retirement. Your private savings will help supplement them. Let’s take a closer look at private saving plans. Private saving plans include both your personal savings, for example with a bank or other financial institution, and workplace plans that are sponsored by your employer or union. Some plan types are available in workplace plans and individually. They include RRSPs which are designed for retirement, TFSAs which are for savings of any type and non-registered saving plans, which is just a fancy way of saying savings that don’t have any special tax treatment. RPPs and DPSPs are two plan types that are only available through workplace plans. While all these savings plan types are possible to have in a workplace plan, I want to emphasize that it’s unlikely all of them will be available to you. Speak to your plan administrator to find out which options are.
Slide 11: How much do I need to save for retirement?
Three steps: Create a retirement budget Estimate government benefits Combine all sources Presenter: Whether you intend on saving through your group retirement and savings plan, personal savings, or both, you’ll still need to determine how much to save. You can do this in three steps: Step 1 - Create a retirement budget. Before we can know how much we need to save, we need to know what we are saving for. Step 2 - Obtain your government benefits estimates. Step 3 - Put it all together to figure out how much you need to save. Let’s review each of these steps in more detail. I’ll use an example to help illustrate the steps.
Slide 12: Meet Bert
Profile: 39 years old, lives in Winnipeg $60,000 in RRSP $65,000 salary at ABC Company Eligible for 3% employer match Presenter: Meet Bert. Bert is a 39-year-old homeowner from Winnipeg, Manitoba. He has $60,000 of savings already set aside for his retirement in an RRSP at his bank. Bert was just hired by ABC Company and is fortunate to have a retirement savings plan to participate in. His yearly salary is $65,000 and the retirement savings plan offers him employer matching. For this example, Bert can contribute 3% of his earnings to the plan and ABC Company will match his contribution. Bert also noticed that his workplace plan provides him the option to increase his personal savings by making voluntary contributions. As we go through this example keep in mind that it’s for illustration purposes only. Your group plan rules, including availability of employer contribution matching, may not be the same as Bert’s.
Slide 13: Step 1: Estimate monthly expenses in retirement
Breakdown: Fixed: $950 (e.g., utilities, insurance) Discretionary: $1,050 (e.g., food, travel) Total: $2,000
Presenter:
The first step is to create an estimated retirement budget. A budget is a working document meaning it’s something that you may want to revisit and update from time to time. Start with itemizing your approximate expenses that you foresee in retirement. For Bert, retirement is still quite a few years away. We created Bert’s retirement budget using his current monthly expenses of $2,500 and then adjusted it to reflect that some of his expenses will reduce or be eliminated by retirement. For example, he anticipates having his mortgage paid off by then, so we didn’t include rent or mortgage payments in his fixed expenses. Bert’s total approximate monthly retirement expenses will be $2,000.
Slide 14: Step 2: Obtain your government benefits estimates (CPP) Instructions to access CPP estimates via My Service Canada Account. The slide illustrates this using a screenshot of two Government of Canada webpages.
Presenter:
The next step is to obtain estimates how much money will be received from government benefits. As Bert lives in Manitoba, he participates in the CPP. Your estimated CPP benefits can be found on Canada.ca by signing into your My Service Canada Account.
Slide 15: Step 2: Obtain your government benefits estimates (QPP)
Instructions to access QPP estimates via Retraite Québec website. This slide is explained using two screenshots from the Retraite Québec website. The first shows the Online Services page, highlighting where to navigate to access QPP estimates. The second illustrates how to request statements of participation from that page.
Presenter:
If you live in Quebec, you’ll participate in QPP. You can find your QPP benefits on the Retraite Quebec website singing into your account.
Slide 16: Step 2: Determine your benefits (OAS) If an individual has lived in Canada for 40 years by the time they retire, they are likely to receive the maximum Old Age Security (OAS) benefit. Otherwise, they can use the Old Age Security Benefits Estimator on Canada.ca to estimate their payment. Includes a screenshot of the Old Age Security Benefits Estimator page on the Government of Canada website. Presenter: Bert also needs to obtain the estimate the amount of OAS benefit he’ll receive. This can also be done on Canada.ca where you’ll find the the Old Age Security Benefits Estimator.
Slide 17: Step 3: Put it all together Slide provides an example how to combine them: Income: $1,544 (CPP + OAS) Expenses: $2,000 Shortfall: $456/month The slide also features a picture of a cat positioned to the right, next to the expenses section.
Presenter:
Once you’ve estimated your retirement expenses and the amount of government benefits, you’ll receive, step three is putting it all together. Here’s what it would look like for Bert. For expected income from Government benefits, Bert’s expected amount from CPP is around the average amount payable. Bert is also expecting the full OAS pension, so the total estimated monthly income from the government at age 65 will be $1,544. Bert’s estimated expenses in retirement are expected to be about $2,000 a month. As you can see Bert’s expenses are going to exceed his income from government benefits by $456 a month. This is the amount of income he’ll need from his private savings to retire comfortably. The final step in putting it all together is to figure out how much more Bert needs to save today to cover the extra $456 a month he’ll need in retirement.
Slide 18: Step 3: Put it all together Instructions to use the retirement goal tool on My Canada Life at Work. The slide also features a screenshot of the My Canada Life at Work overview page.
Presenter:
To figure out how much Bert needs to save, we’re going to use the Retirement Goal tool on mycanadalifeatwork.com. You can access it from the overview screen once you sign in. Let’s quickly go through the various steps of the calculator so that you know what to expect when you complete the tool.
Slide 19: Step 1: Information gathering Provides an example of Bert gathering: Plan details Existing savings Government benefit estimates The slide includes a screenshot of the Retirement Goal Tool, specifically the Step 1: Ready page.
Presenter:
Step 1 The first step reminds you of all the information you need to gather to get the most out of this tool. It includes: - Your approximate expenses today and in retirement - Information about your workplace savings plan - Details about any existing retirement savings you may have at other financial institutions - Government benefits estimates
Slide 20: Step 2: When would you like to retire? User inputs desired retirement age into the tool. The slide includes a screenshot of the Retirement Goal Tool, specifically the Step 2: "When would you like to retire?”
Presenter:
Step 2 is an easy one! What age would you like to retire. Bert would like to retire at age 65
Slide 21: Step 3: What are your current monthly expenses? Shows a screenshot of a user entering monthly expenses into the tool.
Presenter:
Next, you’ll be prompted to enter your approximate monthly expenses. Bert’s expenses are about $2,500 a month.
Slide 22: Step 4: Will you need more or less money in retirement? Shows a screenshot of a user estimating if retirement expenses will be higher or lower than current.
Presenter:
The fourth step asks you to input your expected expenses at retirement. You don’t need to guess at how much things will cost in the future. Input your expenses in today’s dollars and the tool will make adjustments to account for inflation. Bert’s expected future expenses are $2,000 a month. Slide 23: Step 5: Registered savings Shows a screenshot of a user inputting current RRSP or other registered savings.
Presenter:
Step 5 asks you to enter how much saving you have outside of your group plan. Bert has $60,000 in an RRSP at a bank and enters that amount.
Presenter: When you complete this tool for yourself, combine all your savings into one entry even if your savings are held at different institutions.
Slide 24: Step 6: How much are you contributing to registered plans?
The slide tells that Bert contributes 3% and receives 3% match. He enters 6% total. The slide also features a screenshot of Step 6 of the tool, which is titled "Contributions."
Presenter:
Step 6 in the tool is to input the amount of contributions you make to your workplace plan. As a reminder, Bert can contribute 3% of his income and receive another 3% contribution from his employer. For that reason, we’ll enter the full 6% total into this calculation. [CLICK] And we’ll enter Bert’s yearly salary of $65,000 below it.
Slide 25: Step 7: Do you have any other savings?
Bert has no non-registered savings. The slide also features a screenshot of Step 7 of the tool, which is titled "non-registered savings."
Presenter:
Step 7 asks for the amount of non-registered savings you have, for example in a saving account or other assets you have, like the sale of a property, that will fund your retirement. Bert doesn’t have any non-registered savings, so we’ll enter $0 for him.
Slide 26: Step 8: What’s your expected income from CPP/QPP? Bert selects average CPP benefit. The slide also features a screenshot of Step 8 of the tool, which is titled "CPP/QPP."
Presenter:
Steps 8 and 9 are for Government retirement benefits. The Tool does provide easy drop-down options to enter maximum amount, average amount or a custom amount.
We selected the average amount of CPP for Bert.
Slide 27: Step 9: What’s your expected income from OAS?
Bert selects maximum OAS benefit. The slide also features a screenshot of Step 9 of the tool, which is titled "What’s your expected income from OAS."
Presenter:
We also know that Bert is expecting the maximum OAS so we selected that from the drop-down menu.
Slide 28: Step 10: Will you have other income? Bert has no other income sources. The slide also features a screenshot of Step 10 of the tool, which is titled "Other income."
Presenter:
Bert is almost done! The last question is around any other expected income in retirement. This includes things such as rent from income properties, part-time jobs, and any other source that hasn’t already been factored in. Bert doesn’t have any other income sources, so we left this one as $0 for him as well.
Slide 29: Step 11: Results Tool shows Bert has a $74/month shortfall. He can close the gap by contributing 1% more. The slide also features a screenshot of the last step in the tool which showcases the results using a bar graph.
Presenter:
The last step is to review your results. If you have a shortfall the tool will let you know how much more you need to contribute to meet your income goal. As you can see, even with his contribution into his group savings plan, Bert will still have a shortfall of about $74 per month in retirement. The tool provides Bert with feedback that he needs to contribute 7% of his salary in order to meet his goal. Since Bert is already saving 6% his income, he only needs to contribute an extra 1% to meet his income goals. He decides to do this by setting up voluntary contributions into his group plan equal to 1% of his salary.
Slide 30: What to do with your results Suggestions: Review budget and expenses Maximize group plan Delay retirement or work part-time
Presenter:
Now, let’s talk about you instead of Bert. If go through these steps and the tool indicates you’re on track, be sure to review and update the tool periodically. As your life changes your goals may too and we want your retirement savings to keep up with them. If you’re not on track, this is your opportunity to implement changes today to achieve your future goals: - Need to save more? Review your current budget to find ways to save - Spend time reviewing your expected retirement expenses. Planning and budgeting is important today and in the future. - Know the rules of your group retirement savings plan. If your plan offers employer matching, be sure to take advantage of it and get the most that you’re eligible for. - You may want to consider part-time work − both today and in your early retirement years. - You may also want to consider delaying your retirement. Use the retirement goal tool to understand the impact of pushing back your retirement age.
Slide 31: Use a budget worksheet for current and future expenses Promotes Canada Life’s online budget calculator at canadalife.com/cashcalculator and features a screenshot of a sample page in the cash flow calculator.
Presenter:
Speaking of budgeting, using a budget worksheet can make creating a budget much easier. You can find a free one at canadalife.com/cashcalculator.
Slide 32: How can my group retirement and savings plan help me save? Benefits: Employer matching Payroll deductions Lower investment fees The slide also showcases a picture of a father sitting on a lawn chair, high fiving his toddler son while holding his baby in his other arm.
Presenter:
Your group retirement and savings plan has a few features that can make saving easier. Your plan may provide employer contributions, allow you to save with payroll deductions and offer investment management fees that are typically lower than you’d pay for similar individual investments. Let’s explore these in more detail.
Slide 33: Payroll deductions cost less than you think
Shows how 3% and 6% contributions reduce take-home pay by only $53 and $105 bi-weekly, respectively. Visual description: Two tables comparing gross pay, contributions, taxes, and net pay for 0%, 3%, and 6% contributions. Presenter: Not only are payroll deductions an easy and convenient way to save for your retirement, but they also cost less than you think because of when tax is calculated. This basic example will highlight the impact of saving through payroll deduction to a registered plan, such as an RRSP or Pension Plan. In the first example it assumes a gross annual income of $65,000 and no contributions are being made to a retirement savings plan. Gross pay is $2,500 and there is NO payroll contribution being made so tax will be calculated on the full amount. This is a generic example so we will assume tax at 30% with take home pay being $1,750 [CLICK] [CLICK] By making a 3% payroll deducted contribution, [CLICK] that equals $75 which is deducted from gross pay and sent over to Canada Life to be invested.
[CLICK] This reduces taxable income, and as a result, [CLICK] less tax is paid up front. [CLICK] In this example, by making a $75 contribution, [CLICK] take home pay is only different by $53 dollars. [CLICK] [CLICK] Now let’s increase savings to 6% and see the impact on take home pay. [CLICK] The payroll deduction will now be $150, [CLICK] reducing taxable pay to $2,350. [CLICK] Tax payable will also reduce to $705 *CLICK* resulting in a take home pay of $1,645. The difference to take home pay prior to contributing to the plan, [CLICK] versus contributing $150 is only $105.
Slide 34: What are investment management fees and operating expenses (IMFOE’s)?
Explains: Fees cover professional services Expressed as a percentage Deducted daily, reducing returns The slide also features a picture of a lady using her phone.
Presenter:
The next way that your group retirement and savings plan can help you save is through your investment management fees and operating expenses (IMFOE’s). IMFs are fees paid to investment managers for their professional services, including the daily management of each fund offered through your group plan. The operating expenses associated with the Fees are a fund’s costs, such as administration and audit fees. IMFOEs are the combined amount expressed as an annualized % which is deducted out of the fund to pay for these costs. When you’re part of a group plan, you have group buying power so your fees are typically less than what you would pay to invest in a mutual fund or segregated fund at the bank as an individual. Here’s a quick example how a difference of even 1% the fees you are paying can make a big difference in your long-term savings.
Slide 35: The impact of lower fees Shows how group plans grow more over time. Visual description: Bar graph comparing 25-year growth of $25,000: Group plan: $84,659 Individual plan: $66,646 Difference: $18,013
Presenter:
In this example, there’s [CLICK] $25,000 in a group retirement plan and $25,000 an individual plan. We are also comparing a difference of 1% in the IMFOE’s. [CLICK] [CLICK] While a 1% savings doesn’t seem like much, over 25 years it makes a big difference. 1% in savings, means you have a 1% greater rate of return year over year for 25 years. [CLICK] IMFOE’s vary by plan. For more information about the fees you’re paying for the different investment options, log into your member portal at mycanadalifeatwork.com. All of your investment options and applicable fees are listed there.
Slide 36: Tools, resources and support
Lists: Member website: mycanadalifeatwork.com Education: articles, videos, calculators Contact: 1-800-724-3402 and tech line 1-888-222-0775
Presenter:
When it comes to saving for retirement there’s a lot of information to review and decisions to make. Fortunately, there’s plenty of support available to you as a Canada Life group savings plan member. For help, call our main support line at 1-800-724-3402. To create a retirement goal, research and/or change your investment options, access your statements and more, sign in to mycanadalifeatwork.com. And, you want to keep learning more about money and investing, visit canadalife.com/smartpath where you’ll find articles, videos and calculators to support you in your financial literacy journey.
Slide 37: Questions?
Encourages contacting Canada Life for help. Reiterates that the information is educational and not a guarantee of future outcomes.
Presenter:
While saving for retirement can be daunting, you’ve already taken a big step in your journey by watching this webinar. We encourage you to watch more of them to keep learning about money and your group saving plan.
Description:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Retirement – Saving for your future
Cover slide introducing the presentation on retirement planning and savings. The cover photo shows an older couple fishing.
Presenter:
Hi and welcome to the retirement – saving for your future webinar.
Slide 2: Canadians and our retirement savings
Highlights key statistics: 47% of Canadian workers worry about running out of money in retirement. Only 35% of Canadians aged 50+ can afford to retire when they want. Rising housing costs are delaying retirement savings.
Presenter:
If you’re one of the many Canadians worried about saving for retirement, you’re not alone. [click] 47% of Canadian workers worry about running out of money in retirement. [click] Only 35% of working Canadians aged 50+ can afford to retire when they want to. [click] And Canadians with rent and mortgage payments are delaying retirement savings altogether. The good news for each of you is that you have a workplace savings plan that can help alleviate some of these concerns.
Slide 3: Agenda Outlines the presentation topics:
• Where can my retirement income come from?• How much do I need to save? • How can my group retirement and savings plan help me save? The slide also includes a photo of an elderly woman smiling, positioned to the left of the agenda.
Presenter:
Our goal in today’s webinar is to share information about your potential retirement income sources, how you can evaluate your retirement saving strategy, and the potential next steps you can take to be confident saving for the retirement lifestyle that is right for you.
Slide 4: Sources of retirement income
Breaks down income into public and private sources: Public: OAS and CPP/QPP Private: Workplace savings plans and personal savings Visual description: A two-column layout showing public vs. private income sources.
Presenter: When planning for retirement, it’s important to understand the different potential sources of retirement income. This includes both public and private sources. Public, or government plans, include Old Age Security and the Canada Pension Plan or if you live in Quebec, the Québec Pension Plan. Retirement income from private plans include workplace savings plans and your own personal savings. Let’s take a closer look at each of these sources to ensure you understand how they will work for you during your retirement years.
Slide 5: CPP and QPP overview
Explains: CPP/QPP can start between ages 60–70 (72 for QPP). Benefits are taxable. Based on age, contributions, and average earnings. Maximum monthly payment: $1,364.60; average: $815 (as of July 2024).
Presenter:
CPP is a contributory public pension plan that provides a basic level of earnings in retirement for workers throughout Canada – except for Quebec. Workers in Quebec are covered by QPP, which provides similar benefits. These are taxable benefits and are adjusted annually. The amount you’ll receive from these benefits depends on your average earnings throughout your working life, including how much you’ve contributed while working, and the age you decide to start receiving your CPP or QPP benefit. For this year, the maximum monthly benefit amount you could receive, as a new recipient starting at age 65, is $1,364. It’s important that you keep in mind, not everyone will be eligible for this maximum amount. Your individual situation will determine how much you'll receive. You can get your estimate of your monthly CPP payments by logging into your My Service Canada Account. Or go to My Account with Retraite Quebec to get an estimate for QPP payments.
Slide 6: CPP and QPP contribution rates
Outlines contribution tiers: 0% on first $3,500 5.95% on $3,500.01–$68,500 4% on $68,500.01–$73,200 0% above $73,200
Presenter:
Originally, CPP and QPP were designed to replace 25% of the average working wage. Eventually this amount will be increased to 33% of the average working wage. Similar to how there are tax brackets for income taxes, there are now contribution thresholds: The first $3,500 of your yearly earnings continues to be exempt from CPP and QPP contributions. The next $3,500 to $68,000 of your earnings has a contribution rate of 5.95%. The new second level of contributions was introduced on January 1, 2024. For earnings you make between $68,500 and $73,200 the contribution rate is 4%. Earnings over $73,200 are exempt from contributions. Your employer matches the CPP or QPP and CPP2 or QPP2 contributions you make. The remaining changes to CPP and QPP will be phased-in in 2025 with the CPP2 and QPP2 amounts increasing to14% above the amount of the first earnings ceiling. The thresholds are updated annually.
Slide 7: When will CPP/QPP start?
Shows impact of starting early or late: 0.6% monthly reduction before 65 (up to -36%) 0.7% monthly increase after 65 (up to +42%) Example: Jean receives $815 at 65, $521.60 at 60, $1,157.30 at 70 Presenter: The age you start receiving CPP or QPP effects how much you’ll get. You can start receiving benefits when you’re 60 and defer them until you’re 70. If you apply to take your CPP/QPP before you’re 65, your benefit amount will be reduced by 0.60% for every month you take it early. If you wait to start taking benefits until after you’re 65, the amount you’ll get will increase by 0.70% for every month you delay. There’s no one answer that would be applicable to everyone regarding when you should start receiving these benefits. It will all depend on your individual plans and circumstances that includes your health and other retirment income resources. Let’s review an example.
[CLICK] Jean is eligible to receive the average CPP amount at age 65, which is $815.00 [CLICK] If Jean applies to take the benefit at age 60 the monthly amount payable is reduced by 36% to $485.32. [CLICK] If Jean waits until age 70, the amount increases by 42% to $1,076.81 per month
Slide 8: OAS overview
Explains: Starts between ages 65–70 Taxable Based on residency and income Maximum monthly payment: $727.67 (Oct–Dec 2024)
Presenter:
Next, let’s review Old Age Security, or OAS. OAS is a benefit available at age 65. The amount you receive is based on the number of years you’ve lived in Canada after the age of 18. So, if you’ve been a resident for 40 years, you’ll receive the maximum. If it's less than 40 years you may get a partial benefit. You must be a resident for at least 10 years to receive any OAS. It’s also important to note that OAS is income tested and the OAS recovery tax, more commonly known as the Clawback, may be implemented. In 2024, if your net world income exceeds $90,997 you may be eligible for less OAS next year. Once your net world income exceed $148,065, you will may not be eligible to receive any OAS in the following year. The minimum and maximum amounts are adjusted each year. When you reach 75, your OAS payments will automatically be increased by 10%. OAS is a taxable benefit, and the amount payable is reviewed and potentially adjusted by the government four times a year to keep up with the current cost of living.
Slide 9: When does OAS start?
Cannot start before 65 Increases 0.6% monthly after 65 (up to +36%) Example: Jean receives $727.67 at 65, $989.63 at 70 Presenter: Similar to CPP and QPP, one of the factors that can affect how much OAS benefits you get is when you take it. The earliest you can start receiving OAS payments is 65. You can delay taking it until you’re 70. If you decide to delay taking the payments the benefit amount increases by 0.6% for each month you delay taking it after you turn 65. Let’s take another look at Jean.
[CLICK]
Jean has lived in Canada for their entire life and is eligible to receive the maximum OAS amount at age 65, which is $727.67 [CLICK] A quick reminder that if Jean wanted to receive OAS at age 60 that isn’t an option. [CLICK] If Jean waits until age 70 Jean’s amount is increased by 36% and is $989.63 per month.
Slide 10: Types of private retirement savings plans
Lists workplace and individual plans: RRSP, TFSA, NRSP RPP, DPSP Presenter: Government benefits likely won’t be enough to cover all your expenses in retirement. Your private savings will help supplement them. Let’s take a closer look at private saving plans. Private saving plans include both your personal savings, for example with a bank or other financial institution, and workplace plans that are sponsored by your employer or union. Some plan types are available in workplace plans and individually. They include RRSPs which are designed for retirement, TFSAs which are for savings of any type and non-registered saving plans, which is just a fancy way of saying savings that don’t have any special tax treatment. RPPs and DPSPs are two plan types that are only available through workplace plans. While all these savings plan types are possible to have in a workplace plan, I want to emphasize that it’s unlikely all of them will be available to you. Speak to your plan administrator to find out which options are.
Slide 11: How much do I need to save for retirement?
Three steps: Create a retirement budget Estimate government benefits Combine all sources Presenter: Whether you intend on saving through your group retirement and savings plan, personal savings, or both, you’ll still need to determine how much to save. You can do this in three steps: Step 1 - Create a retirement budget. Before we can know how much we need to save, we need to know what we are saving for. Step 2 - Obtain your government benefits estimates. Step 3 - Put it all together to figure out how much you need to save. Let’s review each of these steps in more detail. I’ll use an example to help illustrate the steps.
Slide 12: Meet Bert
Profile: 39 years old, lives in Winnipeg $60,000 in RRSP $65,000 salary at ABC Company Eligible for 3% employer match Presenter: Meet Bert. Bert is a 39-year-old homeowner from Winnipeg, Manitoba. He has $60,000 of savings already set aside for his retirement in an RRSP at his bank. Bert was just hired by ABC Company and is fortunate to have a retirement savings plan to participate in. His yearly salary is $65,000 and the retirement savings plan offers him employer matching. For this example, Bert can contribute 3% of his earnings to the plan and ABC Company will match his contribution. Bert also noticed that his workplace plan provides him the option to increase his personal savings by making voluntary contributions. As we go through this example keep in mind that it’s for illustration purposes only. Your group plan rules, including availability of employer contribution matching, may not be the same as Bert’s.
Slide 13: Step 1: Estimate monthly expenses in retirement
Breakdown: Fixed: $950 (e.g., utilities, insurance) Discretionary: $1,050 (e.g., food, travel) Total: $2,000
Presenter:
The first step is to create an estimated retirement budget. A budget is a working document meaning it’s something that you may want to revisit and update from time to time. Start with itemizing your approximate expenses that you foresee in retirement. For Bert, retirement is still quite a few years away. We created Bert’s retirement budget using his current monthly expenses of $2,500 and then adjusted it to reflect that some of his expenses will reduce or be eliminated by retirement. For example, he anticipates having his mortgage paid off by then, so we didn’t include rent or mortgage payments in his fixed expenses. Bert’s total approximate monthly retirement expenses will be $2,000.
Slide 14: Step 2: Obtain your government benefits estimates (CPP) Instructions to access CPP estimates via My Service Canada Account. The slide illustrates this using a screenshot of two Government of Canada webpages.
Presenter:
The next step is to obtain estimates how much money will be received from government benefits. As Bert lives in Manitoba, he participates in the CPP. Your estimated CPP benefits can be found on Canada.ca by signing into your My Service Canada Account.
Slide 15: Step 2: Obtain your government benefits estimates (QPP)
Instructions to access QPP estimates via Retraite Québec website. This slide is explained using two screenshots from the Retraite Québec website. The first shows the Online Services page, highlighting where to navigate to access QPP estimates. The second illustrates how to request statements of participation from that page.
Presenter:
If you live in Quebec, you’ll participate in QPP. You can find your QPP benefits on the Retraite Quebec website singing into your account.
Slide 16: Step 2: Determine your benefits (OAS) If an individual has lived in Canada for 40 years by the time they retire, they are likely to receive the maximum Old Age Security (OAS) benefit. Otherwise, they can use the Old Age Security Benefits Estimator on Canada.ca to estimate their payment. Includes a screenshot of the Old Age Security Benefits Estimator page on the Government of Canada website. Presenter: Bert also needs to obtain the estimate the amount of OAS benefit he’ll receive. This can also be done on Canada.ca where you’ll find the the Old Age Security Benefits Estimator.
Slide 17: Step 3: Put it all together Slide provides an example how to combine them: Income: $1,544 (CPP + OAS) Expenses: $2,000 Shortfall: $456/month The slide also features a picture of a cat positioned to the right, next to the expenses section.
Presenter:
Once you’ve estimated your retirement expenses and the amount of government benefits, you’ll receive, step three is putting it all together. Here’s what it would look like for Bert. For expected income from Government benefits, Bert’s expected amount from CPP is around the average amount payable. Bert is also expecting the full OAS pension, so the total estimated monthly income from the government at age 65 will be $1,544. Bert’s estimated expenses in retirement are expected to be about $2,000 a month. As you can see Bert’s expenses are going to exceed his income from government benefits by $456 a month. This is the amount of income he’ll need from his private savings to retire comfortably. The final step in putting it all together is to figure out how much more Bert needs to save today to cover the extra $456 a month he’ll need in retirement.
Slide 18: Step 3: Put it all together Instructions to use the retirement goal tool on My Canada Life at Work. The slide also features a screenshot of the My Canada Life at Work overview page.
Presenter:
To figure out how much Bert needs to save, we’re going to use the Retirement Goal tool on mycanadalifeatwork.com. You can access it from the overview screen once you sign in. Let’s quickly go through the various steps of the calculator so that you know what to expect when you complete the tool.
Slide 19: Step 1: Information gathering Provides an example of Bert gathering: Plan details Existing savings Government benefit estimates The slide includes a screenshot of the Retirement Goal Tool, specifically the Step 1: Ready page.
Presenter:
Step 1 The first step reminds you of all the information you need to gather to get the most out of this tool. It includes: - Your approximate expenses today and in retirement - Information about your workplace savings plan - Details about any existing retirement savings you may have at other financial institutions - Government benefits estimates
Slide 20: Step 2: When would you like to retire? User inputs desired retirement age into the tool. The slide includes a screenshot of the Retirement Goal Tool, specifically the Step 2: "When would you like to retire?”
Presenter:
Step 2 is an easy one! What age would you like to retire. Bert would like to retire at age 65
Slide 21: Step 3: What are your current monthly expenses? Shows a screenshot of a user entering monthly expenses into the tool.
Presenter:
Next, you’ll be prompted to enter your approximate monthly expenses. Bert’s expenses are about $2,500 a month.
Slide 22: Step 4: Will you need more or less money in retirement? Shows a screenshot of a user estimating if retirement expenses will be higher or lower than current.
Presenter:
The fourth step asks you to input your expected expenses at retirement. You don’t need to guess at how much things will cost in the future. Input your expenses in today’s dollars and the tool will make adjustments to account for inflation. Bert’s expected future expenses are $2,000 a month. Slide 23: Step 5: Registered savings Shows a screenshot of a user inputting current RRSP or other registered savings.
Presenter:
Step 5 asks you to enter how much saving you have outside of your group plan. Bert has $60,000 in an RRSP at a bank and enters that amount.
Presenter: When you complete this tool for yourself, combine all your savings into one entry even if your savings are held at different institutions.
Slide 24: Step 6: How much are you contributing to registered plans?
The slide tells that Bert contributes 3% and receives 3% match. He enters 6% total. The slide also features a screenshot of Step 6 of the tool, which is titled "Contributions."
Presenter:
Step 6 in the tool is to input the amount of contributions you make to your workplace plan. As a reminder, Bert can contribute 3% of his income and receive another 3% contribution from his employer. For that reason, we’ll enter the full 6% total into this calculation. [CLICK] And we’ll enter Bert’s yearly salary of $65,000 below it.
Slide 25: Step 7: Do you have any other savings?
Bert has no non-registered savings. The slide also features a screenshot of Step 7 of the tool, which is titled "non-registered savings."
Presenter:
Step 7 asks for the amount of non-registered savings you have, for example in a saving account or other assets you have, like the sale of a property, that will fund your retirement. Bert doesn’t have any non-registered savings, so we’ll enter $0 for him.
Slide 26: Step 8: What’s your expected income from CPP/QPP? Bert selects average CPP benefit. The slide also features a screenshot of Step 8 of the tool, which is titled "CPP/QPP."
Presenter:
Steps 8 and 9 are for Government retirement benefits. The Tool does provide easy drop-down options to enter maximum amount, average amount or a custom amount.
We selected the average amount of CPP for Bert.
Slide 27: Step 9: What’s your expected income from OAS?
Bert selects maximum OAS benefit. The slide also features a screenshot of Step 9 of the tool, which is titled "What’s your expected income from OAS."
Presenter:
We also know that Bert is expecting the maximum OAS so we selected that from the drop-down menu.
Slide 28: Step 10: Will you have other income? Bert has no other income sources. The slide also features a screenshot of Step 10 of the tool, which is titled "Other income."
Presenter:
Bert is almost done! The last question is around any other expected income in retirement. This includes things such as rent from income properties, part-time jobs, and any other source that hasn’t already been factored in. Bert doesn’t have any other income sources, so we left this one as $0 for him as well.
Slide 29: Step 11: Results Tool shows Bert has a $74/month shortfall. He can close the gap by contributing 1% more. The slide also features a screenshot of the last step in the tool which showcases the results using a bar graph.
Presenter:
The last step is to review your results. If you have a shortfall the tool will let you know how much more you need to contribute to meet your income goal. As you can see, even with his contribution into his group savings plan, Bert will still have a shortfall of about $74 per month in retirement. The tool provides Bert with feedback that he needs to contribute 7% of his salary in order to meet his goal. Since Bert is already saving 6% his income, he only needs to contribute an extra 1% to meet his income goals. He decides to do this by setting up voluntary contributions into his group plan equal to 1% of his salary.
Slide 30: What to do with your results Suggestions: Review budget and expenses Maximize group plan Delay retirement or work part-time
Presenter:
Now, let’s talk about you instead of Bert. If go through these steps and the tool indicates you’re on track, be sure to review and update the tool periodically. As your life changes your goals may too and we want your retirement savings to keep up with them. If you’re not on track, this is your opportunity to implement changes today to achieve your future goals: - Need to save more? Review your current budget to find ways to save - Spend time reviewing your expected retirement expenses. Planning and budgeting is important today and in the future. - Know the rules of your group retirement savings plan. If your plan offers employer matching, be sure to take advantage of it and get the most that you’re eligible for. - You may want to consider part-time work − both today and in your early retirement years. - You may also want to consider delaying your retirement. Use the retirement goal tool to understand the impact of pushing back your retirement age.
Slide 31: Use a budget worksheet for current and future expenses Promotes Canada Life’s online budget calculator at canadalife.com/cashcalculator and features a screenshot of a sample page in the cash flow calculator.
Presenter:
Speaking of budgeting, using a budget worksheet can make creating a budget much easier. You can find a free one at canadalife.com/cashcalculator.
Slide 32: How can my group retirement and savings plan help me save? Benefits: Employer matching Payroll deductions Lower investment fees The slide also showcases a picture of a father sitting on a lawn chair, high fiving his toddler son while holding his baby in his other arm.
Presenter:
Your group retirement and savings plan has a few features that can make saving easier. Your plan may provide employer contributions, allow you to save with payroll deductions and offer investment management fees that are typically lower than you’d pay for similar individual investments. Let’s explore these in more detail.
Slide 33: Payroll deductions cost less than you think
Shows how 3% and 6% contributions reduce take-home pay by only $53 and $105 bi-weekly, respectively. Visual description: Two tables comparing gross pay, contributions, taxes, and net pay for 0%, 3%, and 6% contributions. Presenter: Not only are payroll deductions an easy and convenient way to save for your retirement, but they also cost less than you think because of when tax is calculated. This basic example will highlight the impact of saving through payroll deduction to a registered plan, such as an RRSP or Pension Plan. In the first example it assumes a gross annual income of $65,000 and no contributions are being made to a retirement savings plan. Gross pay is $2,500 and there is NO payroll contribution being made so tax will be calculated on the full amount. This is a generic example so we will assume tax at 30% with take home pay being $1,750 [CLICK] [CLICK] By making a 3% payroll deducted contribution, [CLICK] that equals $75 which is deducted from gross pay and sent over to Canada Life to be invested.
[CLICK] This reduces taxable income, and as a result, [CLICK] less tax is paid up front. [CLICK] In this example, by making a $75 contribution, [CLICK] take home pay is only different by $53 dollars. [CLICK] [CLICK] Now let’s increase savings to 6% and see the impact on take home pay. [CLICK] The payroll deduction will now be $150, [CLICK] reducing taxable pay to $2,350. [CLICK] Tax payable will also reduce to $705 *CLICK* resulting in a take home pay of $1,645. The difference to take home pay prior to contributing to the plan, [CLICK] versus contributing $150 is only $105.
Slide 34: What are investment management fees and operating expenses (IMFOE’s)?
Explains: Fees cover professional services Expressed as a percentage Deducted daily, reducing returns The slide also features a picture of a lady using her phone.
Presenter:
The next way that your group retirement and savings plan can help you save is through your investment management fees and operating expenses (IMFOE’s). IMFs are fees paid to investment managers for their professional services, including the daily management of each fund offered through your group plan. The operating expenses associated with the Fees are a fund’s costs, such as administration and audit fees. IMFOEs are the combined amount expressed as an annualized % which is deducted out of the fund to pay for these costs. When you’re part of a group plan, you have group buying power so your fees are typically less than what you would pay to invest in a mutual fund or segregated fund at the bank as an individual. Here’s a quick example how a difference of even 1% the fees you are paying can make a big difference in your long-term savings.
Slide 35: The impact of lower fees Shows how group plans grow more over time. Visual description: Bar graph comparing 25-year growth of $25,000: Group plan: $84,659 Individual plan: $66,646 Difference: $18,013
Presenter:
In this example, there’s [CLICK] $25,000 in a group retirement plan and $25,000 an individual plan. We are also comparing a difference of 1% in the IMFOE’s. [CLICK] [CLICK] While a 1% savings doesn’t seem like much, over 25 years it makes a big difference. 1% in savings, means you have a 1% greater rate of return year over year for 25 years. [CLICK] IMFOE’s vary by plan. For more information about the fees you’re paying for the different investment options, log into your member portal at mycanadalifeatwork.com. All of your investment options and applicable fees are listed there.
Slide 36: Tools, resources and support
Lists: Member website: mycanadalifeatwork.com Education: articles, videos, calculators Contact: 1-800-724-3402 and tech line 1-888-222-0775
Presenter:
When it comes to saving for retirement there’s a lot of information to review and decisions to make. Fortunately, there’s plenty of support available to you as a Canada Life group savings plan member. For help, call our main support line at 1-800-724-3402. To create a retirement goal, research and/or change your investment options, access your statements and more, sign in to mycanadalifeatwork.com. And, you want to keep learning more about money and investing, visit canadalife.com/smartpath where you’ll find articles, videos and calculators to support you in your financial literacy journey.
Slide 37: Questions?
Encourages contacting Canada Life for help. Reiterates that the information is educational and not a guarantee of future outcomes.
Presenter:
While saving for retirement can be daunting, you’ve already taken a big step in your journey by watching this webinar. We encourage you to watch more of them to keep learning about money and your group saving plan.
Are you new to Canada? This webinar will help you learn more about the financial aspects of retiring in Canada including:
- Government retirement benefits you may be eligible for
- How registered savings plans can help you to pay less tax
- Answers to common questions
Descriptive:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Welcome to Canada
The cover slide introduces the presentation, which focuses on the Canadian retirement system.
Presenter:
Hi there, this is the Welcome to Canada - The Canadian retirement system webinar. Have you recently moved to Canada? Or have you lived here for a while and want to learn more about how saving for retirement works in Canada? Either way, welcome - you've come to the right place.
Slide 2: Immigration in Canada
Highlights that 471,771 new permanent immigrants arrived in Canada in 2023. Immigrants with permanent residence make up 20% of the total population.
Presenter:
Canada has one of the highest immigration rates in the world. In fact, almost 20% of our population are immigrants with permanent residence. In 2023 alone, 471, 771 new permanent residents came to Canada from about 212 different countries. Just think of all the differences between these countries when it comes to saving for retirement. That’s what makes this presentation so important.
Slide 3: Agenda
Outlines the topics covered:
Integrity and security of Canada’s financial system
Sources of retirement income
Government benefits
Registered savings accounts
Group savings plan advantages
Presenter:
Our goal for today’s session is to give you a basic understanding of how saving for retirement works in Canada. It may be very similar to your country of origin, or it could be quite different. We’ll cover where your retirement income may come from including what the government provides and what you’ll need to save for yourself. We’ll finish the presentation with a review of how your group savings plan can help you prepare for retirement.
Slide 4: What makes Canada’s financial system “safe”
Explains that Canada’s financial system is highly regulated by:
The Office of the Superintendent of Financial Institutions (OSFI)
The Financial Consumer Agency of Canada (FCAC)
Presenter:
Once we start discussing saving for retirement in Canada, you may notice that Canadians put a lot of trust into both the government and financial institutions, like banks and insurance companies, to manage their savings. It’s because Canada’s financial system is one of the most reputable in the world.
Here’s why:
Highly regulated
The Office of the Superintendant of Financial Institutions (OFSI), is an independent agency of the Government of Canada. Their mandate is to regulate and supervise more than 400 financial institutions and 1200 pension federally regulated plans.
The Financial Consumer Agency of Canada (FCAC) is responsible for protecting the rights and interests of consumers, such as yourselves, of financial products and services.
Slide 5: What makes Canada’s financial system “safe”
Describes the stability of Canadian banks:
Known for strength and prudent practices
Over 99% of working-age Canadians have a bank account
National banking system with widespread access
Presenter:
Canadian banks are ranked among the world’s most stable
Canadian banks are recognized for their strength and resiliency, prudent lending practices, large and diverse deposit bases and diligent government oversight.
Over 99% of working age Canadians have an account at a financial institution. This is much higher than the global average of 76%4.
Canada has a national system of banking where many retail banks have a vast network of branches across the country. This national system means that consumers have access to similar products at the same price regardless of where they live.
Slide 6: What makes Canada’s financial system “safe”
Explains deposit insurance:
CDIC and Assuris protect deposits and insurance policies
CDIC has resolved 43 failures with no loss to depositors
Presenter:
Financial institutions are insured
Canada Deposit Insurance Corporation (CDIC) and Assuris were both established to protect Canadians in the event these financial institutions fail.
Canadian’s deposits and insurance policies held at each institution are covered up to a certain amount.
CDIC has resolved 43 member failures (or financial institution failures) to date affecting 2 million Canadians. No one has ever lost any money from a CDIC-insured financial institution closure.
Slide 7: What makes Canada’s financial system “safe”
Describes professional management of retirement funds:
CPP Investments and CDPQ manage pension funds
Operate independently from government
Presenter:
Government benefits funds are professionally managed
Canada Pension Plan Investment Board (CPP Investments) manages the money Canadians contribute to the Canada Pension Plan (CPP). Their goal is to provide Canadians with financial security and stability in retirement.
Similar to CPP Investments, Caisse de dépôt et placement du Québec (CDPQ) manages the Quebec Pension Plan (QPP) funds.
These organizations are independent of government and operate at arm’s length from federal and provincial governments.
Slide 8: Sources of retirement income
Lists out three potential sources of retirement income
Personal savings
Employer sponsored plans (savings plan)
Government benefits
Presenter:
To retire comfortably in Canada, you’ll need to figure out how to replace your employment income to cover your expenses when you’re no longer working.
There are three potential sources of retirement income that can all work together to provide for you in retirement. They include your personal savings, savings through employer sponsor plans, like the Canada Life group savings plan you’re a part of and government retirement benefits.
Slide 9: Government retirement benefits
Slide to start the next section of the presentation. Has a photo of a retirement couple.
Presenter:
One of the income sources I mentioned was government retirement benefits. It’s money that you may be eligible to receive from the government each month once you retire. The amount you receive will depend on several factors including the number of years you worked in Canada, how much you earned and the number of years you lived in Canada.
Slide 10: Government retirement benefits - Overview
Lists the main government retirement benefits:
Canada Pension Plan (CPP)
Québec Pension Plan (QPP)
Old Age Security (OAS)
Guaranteed Income Supplement (GIS)
Presenter:
There are three types of government benefits that you may receive when you retire.
The Canada Pension Plan (CPP) or if you live in the province of Quebec, the Quebec Pension Plan (QPP)
Old Age Security (OAS)
And the Guaranteed Income Supplement (GIS)
Let’s take a closer look at each of them, starting with CPP and QPP
Slide 11: CPP and QPP
Explains how CPP and QPP provide financial support for retirement, disability, or death. The amount depends on age, contributions, and average earnings. Benefits can start between ages 60 and 70 (up to 72 for QPP).
Presenter:
CPP and QPP will provide you with financial assistance in your retirement. You may also be eligible for benefits in the event of your disability or death, however, for today's presentation we are going to focus on the retirement benefit.
The amount you receive is based on:
the age you decide to start your pension
how much and for how long you contributed to the CPP/QPP
your average earnings throughout your working life
CPP and QPP amounts are reviewed each year and may be adjusted to account for inflation.
Slide 12: You’re contributing to CPP or QPP with each pay
Shows a sample pay stub illustrating deductions for CPP, EI, RRSP, and taxes.
Presenter:
If you’re new to Canada, there is a lot to learn about the financial system and one thing you and your family may be doing is trying to account for the various deductions that you see coming off of your pay stub.
One of those deductions is for CPP, or QPP. In Canada, every working person over the age of 18 who earns more than a minimum amount ($3,500 per year) must contribute to one of these programs.
If you want to know how much you’re contributing, you can review your paystub to find out how much is deducted from your pay.
Slide 13: OAS and GIS
Describes OAS and GIS:
OAS is based on residency in Canada after age 18
GIS is for low-income OAS recipients
Both have income limits
Presenter:
Next, let’s take a look at OAS and GIS.
Unlike CPP/QPP you will not see deductions coming off of your pay for the other Government benefits. Old Age Security is funded out of general tax revenues.
Also unlike the CPP/QPP, this benefit isn’t based on how much you’ve contributed. Instead, it’s based on how long you’ve lived in Canada after the age of 18.
The Guaranteed Income Supplement (GIS) is a secondary benefit available to OAS recipients who have a low income.
While OAS and GIS aren’t based on what you earned during your career in Canada, there are some income limits.
For example, in 2025 you wouldn’t qualify for OAS if you earned more than $148,451 in 2024.
And for GIS your income must be low. For example, in 2024, a single individual would have needed an income under $22,056 to quality.
These amounts are reviewed and may be adjusted 4 times per year, so always check with the Government of Canada to understand your own personal situation.
Slide 14: Snapshot of 2024 government benefits at age 65
Provides benefit monthly amounts:
CPP/QPP max: $1,433; average: $808
OAS max: $728
Total annual max: $2,161; average: $1,536
Amounts vary and are adjusted regularly.
Presenter:
So, how much could you receive from government benefits when you retire? As we have reviewed, the benefits payable will be based on many factors, so here we are showing you both the maximum monthly amounts payable as well as the averages.
For CPP and QPP if you were 65 years old today, the maximum monthly benefit you could receive is $1, 433 per month. Most people don’t receive the maximum benefit, so we have also included the average amount payable. At the end of 2024, the average amount payable was $808 per month.
For OAS, the maximum monthly amount payable is $727 at the start of 2025. We do not have data around the average amount payable.
When we combine the two government benefits, the maximum monthly amount payable is $2,162 per month. When doing your retirement planning, it’s important to obtain your own personal benefit estimates….
Slide 15: CPP and OAS
Encourages visiting government websites to estimate your future CPP, QPP, and OAS benefits.
Presenter:
You can obtain your CPP/QPP and OAS estimates today to assist you with your retirement planning.
For CPP and OAS, visit the Government of Canada website at Canada.ca, and for those who are eligible for QPP, visit the Government of Quebec website at retraitequebec.gouv.qc.ca
Slide 16: Retiring outside of Canada
Explains that Canada has agreements with other countries to recognize pension contributions. CPP, QPP, and OAS can be paid in local currency abroad.
Presenter:
Canada is diverse - and it is quite possible - that you may have lived and/or worked outside of Canada and eligible for pensions and benefits from either Canada and/or another country because of a social security agreement.
A social security agreement is an international agreement that is held between Canada and another country that coordinates the pension programs between both countries.
A social security agreement can help you qualify for benefits by allowing you to combine your periods of contribution or periods of residency in Canada with your periods of contribution or periods of residency in the other country to meet the minimum eligibility criteria.
It can also reduce or eliminate restrictions based on citizenship or on payment of pensions abroad.
It is recommended for those who this may apply to understand the details relating to you as it varies from agreements established between countries. Obtain advice from an international tax professional who is familiar with the rules in both countries.
Visit canada.ca for full details on the government retirement benefits and seek tax advice to assist you with your particular situation.
CPP
Eligibility - Pensions and Benefits - Canada.ca
QPP
https://www.rrq.gouv.qc.ca/en/programmes/regime_rentes/ententes_internationales/Pages/ententes_internationales.aspx
Slide 17: Registered savings accounts
Introduces registered savings accounts as tools for retirement and other financial goals.
Presenter:
The two other retirement income sources I mentioned were personal savings and employer sponsors plans. Both of those sources can include savings in registered accounts.
Slide 18: Individual and group registered accounts
Explains that registered accounts can be personal or employer-sponsored. Group accounts are only available through employers.
Presenter:
We have reviewed how Government Benefits can assist with some of your income in retirement, now let’s discuss personal savings and employer sponsored registered accounts.
Registered accounts can be part of your personal savings, your employer-sponsored plan, or both.
Personal savings can include individual registered savings accounts. You can open them at a financial institution of your choice.
Employer sponsored plans can include group registered savings accounts. They are only available through your employer.
Plan rules are established by your employer, following the rules set out in applicable laws and legislation.
Slide 19: Registered savings accounts for different financial goals
Lists types of accounts:
RESP for education
FHSA for first home
TFSA for general savings
RRSP, DPSP, RPP for retirement
Presenter:
There are different types of registered savings accounts to help you save for various financial goals. Depending on where you have moved from, you may feel that the taxes we pay in Canada are higher than what you are used to. Registered accounts offered by the Government of Canada gives tax-incentives and sometimes grants.
If you are saving for your first home, you can use the First home savings account to help you save and buy
If your goals are around saving for a child’s education, the Registered Education Savings Plan (RESP) is available
A tax-free savings account is good for any savings goal you may have, both short and long term
And if you are saving for retirement, the registered accounts available are Registered Retirement Savings Plans (RRSPs), Deferred Profit Sharing Plans (DPSPs) and Registered pension plans (RPPs).
All these plans are designed to assist Canadians with achieving various financial goals, however the focus of our session today is around retirement, and we’ll focus on RRSPs. If you are interested in learning more about TFSAs, RESPs and FHSAs you can find information at canadalife.com or through the Government of Canada website.
Slide 20: Registered savings accounts for retirement income
Details:
RRSPs can be individual or group
DPSPs and RPPs are group-only
All offer tax-sheltered growth
Presenter:
There are different types of registered savings accounts for retirement income. RRSPs are the most common as you can open an individual RRSP at your financial institution, or sometimes it’s available as a group plan through your place of employment.
There are other types of registered savings accounts that you may have access to at your place of employment which could include Deferred Profit Sharing Plans and Registered Pension Plans. You may or may not have access to these at work. If you are unsure what types of retirement savings accounts you have access to at your place of employment, you will want to check in with your employer for the details.
There are some differences between RRSPs, DPSPs and RPPs, however the one feature that is the same is tax-deferred deposits and the tax-sheltered investment growth which they can offer. In this next section we are going to spend time discussing RRSPs in more detail.
Slide 21: RRSP overview
Describes RRSPs:
Registered with CRA
Require prior Canadian income and tax filing
Intended for long-term retirement savings
Presenter:
What is an RRSP?
A savings account that’s registered with the Canada Revenue Agency (CRA) and gives you tax benefits for saving for retirement.
To open an RRSP, prior income in Canada is required and you have filed your income taxes for the previous year.
For long-term, retirement savings.
Slide 22: RRSPs have tax advantages
Explains:
Contributions reduce taxable income
Investment growth is tax-sheltered
Taxes are paid upon withdrawal, usually in retirement
Presenter:
There are many tax advantages for saving for your retirement in an RRSP.
The main up-front advantage is that you don’t have to pay tax on the money you contribute to an RRSP in the year you make the contribution. You receive a tax deduction, and your money can grow tax-deferred to retirement.
This leads us to the future advantages this can provide. Growth on your investments is also not taxable as it is earned, which means more money stays invested to benefit from compound growth over the long-term. When you start withdrawing your money from your savings, that is the time that you will start paying tax on the amounts with withdraw in any year. However, in retirement you may be making less money and paying less tax at that time.
Let’s review these tax-advantages in more detail…
Slide 23: RRSP up-front tax advantages example
Shows how a $5,000 RRSP contribution reduces taxable income and saves $1,250 in taxes on a $60,000 salary.
Presenter:
The first example we will review is how the tax savings we can receive helps us keep more money in our pockets today.
For example, let's say you earn $60,000 in taxable income and contribute $5,000 to your RRSP. That $5,000 contribution reduces your taxable income to $55,000. Assuming a 25% tax rate, contributing $5,000 to your RRSP could reduce your annual tax bill by $1,250
Slide 24: RRSP future tax advantages example
Bar graph that illustrates that tax-deferred investments grow more over time. A $5,000 investment grows to $21,459 in a registered account vs. $15,027 in a non-registered one.
Presenter:
Here’s an example of the long-term tax benefits an RRSP can provide. When your investments can grow without paying taxes on your investment growth, you end up saving a lot more over the long-term. It’s because when taxes aren’t deducted from your earnings, there’s more money that can stay invested and benefit from compound growth.
In this example we’re assuming your marginal tax rate is 25% and you earn 6% a year on your investments. As shown, if you invest $5,000 in a non-registered account, you’ll end up with just over $15,000 after 25 years. Now, if instead your investments are held in a registered tax-deferred account, like an RRSP, you’ll end up with almost $21,500 after 25 years. That’s $6,432 more.
Now remember, even though your money was able to grow tax-free, you’ll still need to pay income tax on the amounts you withdraw when you’re ready to start taking it out for retirement.
Slide 25: Investment options
Explains that RRSPs can hold various investments, depending on what’s offered by the financial institution where they’re held.
Presenter:
While an RRSP is a type of registered account, it’s not an investment of itself. RRSPs can potentially hold the same types of investments as other investment accounts you may have. The investments available to you will depend on what the options are at the financial institution your RRSP is held.
Slide 26: Contribution rules
You can contribute to an RRSP until December 31 of the year you turn 71, up to your CRA deduction limit.
Presenter:
As an RRSP is a tax advantaged savings plan, there are limits as to how much we can contribute to RRSPs each year. To receive the tax deduction, you must meet the contribution rules:
Be 71 years of age or younger.
Contribute up to the amount indicated in your deduction limit. Your deduction limit is established by many factors, including income you’ve received in your previous working years in Canada, contributions to other registered plans, and previous contributions you have made to an RRSP.
In Canada, each individual is responsible for contributing within their deduction limit and ensuring they stay within it…
Slide 27: Where can I find my RRSP deduction limit?
Lists sources:
Notice of Assessment
CRA MyAccount
Tax Information Phone Service
Presenter:
To find out what your deduction limit is you will need to have filed at least one tax return in Canada. Once you have submitted your annual tax return, the government will provide you with a Notice of Assessment. Included in your Notice of assessment is your RRSP deduction limit for that year.
You can also log into your MyAccount at canada.ca, access your account through the mobile app, or call CRA’s automated service at 1-800-267-6999.
Slide 28: Registered Retirement Income Fund (RRIF) Annuity
Introduces LIF and RRIFs annuities as ways to convert savings into retirement income.
Explains that different account types (RRSP, DPSP, RPP) convert into income streams. Taxes are paid when funds are withdrawn.
Presenter:
You may be wondering, what happens when you’re done saving and you’re ready to retire and start withdrawing money to live off of.
The first step is to understand what kind of registered account you have, this will provide the rules around how to receive payments in your retirement.
Be aware of what type of account you have
When you are ready to use your savings for retirement income, these registered accounts will need to be converted to another account or product type to allow for regular payments.
No matter what your savings are converted to, when you withdraw the money, you will pay income tax on the payments you receive. If you recall, you received the tax savings during your working years, this will be the first time this money will be taxed.
Depending on what your account has been converted to, there are different withdrawal rules and features that may affect your retirement income.
If you’re interested in learning more about receiving income in your retirement and how these various plans work, you’ll want to check out our other Canada Life webinars.
Slide 29: Using your group savings plan to save for retirement
Slide to introduce next section of the presentation. Includes a photo of a loving, elderly couple drinking coffee together.
Presenter:
Before we wrap up today’s session, I want to review some of the ways that your group savings plan can help you save for retirement.
Slide 30: Using your group savings plan to save for retirement
Highlights group plan features:
Payroll deductions
Low fees
Multilingual support
Employer contributions
Presenter:
Payroll deductions
When you save through payroll deductions, you’re automatically saving each time you’re paid (you’ll notice one of the deductions on your paystub is contribution into your group savings plan).
You can enjoy immediate tax-savings when your payroll deductions are directed to a registered group plan, like a group registered retirement savings plan (group RRSP ) or registered retirement plan (RPP).
Low fees
The fees you pay on investment funds you buy through your group savings plan are typically lower than what you’d pay for with comparable individual investments.
You’re benefiting from group buying power – like how you pay less when you buy in bulk.
Employer contributions
Some plans have employer contributions as one of their features. This is when your employer contributes to your plan up to a certain amount.
Your group savings plan is the only place you can save where you’ll get “free money” for doing so.
When employer matching is available, if you don’t take advantage of this feature, you’re missing out.
We can also provide you with access to general support in over 240 languages
Slide 31: Ask us your questions, in any language you speak
Support is available in 240 languages. Canada Life can connect you with an interpreter when you call.
Presenter:
When you call Canada Life, Monday – Friday between the hours of 8am and 8PM Eastern, we can have an interpreter join the call at no cost. The interpreter will be able to translate the call with one of our representatives to your language of choice so that you can speak comfortably and have your questions answered clearly.
Slide 32: My Canada Life at Work – Your online portal to your savings
Encourages users to register or sign in at mycanadalifeatwork.com. Tech support is available by phone.
Call the Canada Life Tech Line at 1-888-222-0775.
Presenter:
You can also access your plan online 24 hours a day by signing in to My Canada Life at Work.
If you haven’t signed in before, you’ll need to register using your policy and certificate number. You can find these numbers on the second page of your mailed statements under key information. If you’ve previously received an email inviting you to register, it may also have this information.
For help signing in, call our technical support line at 1-888-222-0775, weekdays from 8 a.m. to 8 p.m. ET.
Slide 33: What can I do on My Canada Life at Work?
Lists features:
View balances
Change investments
Update beneficiaries
Access statements and tax receipts
Set and track retirement goals
Presenter:
What can I do on My Canada Life at Work?
Review and manage your savings plans
Find your total balance
Review or change your investment selection (if applicable, not all members can change their investment selection online)
Update your beneficiaries (if applicable)
Retrieve your statements and tax receipts
Set and track a retirement goal
And more!
Slide 34: Retirement goal tool
Describes a tool to estimate how much you need to save for retirement, including government and personal savings.
Presenter:
One of the most useful features of My Canada Life at Work is the Retirement goal tool.
It’s an easy-to-use calculator that you’ll find on the Overview screen when you sign in.
It can help you figure out how much savings you need to retire
You can include income sources that you’ll have outside of Canada Life, like government benefits and other personal savings in your calculations.
Slide 35: Want help?
Provides contact information for help with your plan and the online portal. Disclaimer at bottom of page reads: The information in this publication is general in nature and is intended for educational purposes only. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur. Past performance is not necessarily indicative of future performance.
Presenter:
Thank you for watching. I hope we’ve achieved our goal of providing you with an introduction to the Canadian retirement system.
We hope you’ll watch more webinars to keep learning about retirement and your group savings plan.
Descriptive:
This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Welcome to Canada
The cover slide introduces the presentation, which focuses on the Canadian retirement system.
Presenter:
Hi there, this is the Welcome to Canada - The Canadian retirement system webinar. Have you recently moved to Canada? Or have you lived here for a while and want to learn more about how saving for retirement works in Canada? Either way, welcome - you've come to the right place.
Slide 2: Immigration in Canada
Highlights that 471,771 new permanent immigrants arrived in Canada in 2023. Immigrants with permanent residence make up 20% of the total population.
Presenter:
Canada has one of the highest immigration rates in the world. In fact, almost 20% of our population are immigrants with permanent residence. In 2023 alone, 471, 771 new permanent residents came to Canada from about 212 different countries. Just think of all the differences between these countries when it comes to saving for retirement. That’s what makes this presentation so important.
Slide 3: Agenda
Outlines the topics covered:
Integrity and security of Canada’s financial system
Sources of retirement income
Government benefits
Registered savings accounts
Group savings plan advantages
Presenter:
Our goal for today’s session is to give you a basic understanding of how saving for retirement works in Canada. It may be very similar to your country of origin, or it could be quite different. We’ll cover where your retirement income may come from including what the government provides and what you’ll need to save for yourself. We’ll finish the presentation with a review of how your group savings plan can help you prepare for retirement.
Slide 4: What makes Canada’s financial system “safe”
Explains that Canada’s financial system is highly regulated by:
The Office of the Superintendent of Financial Institutions (OSFI)
The Financial Consumer Agency of Canada (FCAC)
Presenter:
Once we start discussing saving for retirement in Canada, you may notice that Canadians put a lot of trust into both the government and financial institutions, like banks and insurance companies, to manage their savings. It’s because Canada’s financial system is one of the most reputable in the world.
Here’s why:
Highly regulated
The Office of the Superintendant of Financial Institutions (OFSI), is an independent agency of the Government of Canada. Their mandate is to regulate and supervise more than 400 financial institutions and 1200 pension federally regulated plans.
The Financial Consumer Agency of Canada (FCAC) is responsible for protecting the rights and interests of consumers, such as yourselves, of financial products and services.
Slide 5: What makes Canada’s financial system “safe”
Describes the stability of Canadian banks:
Known for strength and prudent practices
Over 99% of working-age Canadians have a bank account
National banking system with widespread access
Presenter:
Canadian banks are ranked among the world’s most stable
Canadian banks are recognized for their strength and resiliency, prudent lending practices, large and diverse deposit bases and diligent government oversight.
Over 99% of working age Canadians have an account at a financial institution. This is much higher than the global average of 76%4.
Canada has a national system of banking where many retail banks have a vast network of branches across the country. This national system means that consumers have access to similar products at the same price regardless of where they live.
Slide 6: What makes Canada’s financial system “safe”
Explains deposit insurance:
CDIC and Assuris protect deposits and insurance policies
CDIC has resolved 43 failures with no loss to depositors
Presenter:
Financial institutions are insured
Canada Deposit Insurance Corporation (CDIC) and Assuris were both established to protect Canadians in the event these financial institutions fail.
Canadian’s deposits and insurance policies held at each institution are covered up to a certain amount.
CDIC has resolved 43 member failures (or financial institution failures) to date affecting 2 million Canadians. No one has ever lost any money from a CDIC-insured financial institution closure.
Slide 7: What makes Canada’s financial system “safe”
Describes professional management of retirement funds:
CPP Investments and CDPQ manage pension funds
Operate independently from government
Presenter:
Government benefits funds are professionally managed
Canada Pension Plan Investment Board (CPP Investments) manages the money Canadians contribute to the Canada Pension Plan (CPP). Their goal is to provide Canadians with financial security and stability in retirement.
Similar to CPP Investments, Caisse de dépôt et placement du Québec (CDPQ) manages the Quebec Pension Plan (QPP) funds.
These organizations are independent of government and operate at arm’s length from federal and provincial governments.
Slide 8: Sources of retirement income
Lists out three potential sources of retirement income
Personal savings
Employer sponsored plans (savings plan)
Government benefits
Presenter:
To retire comfortably in Canada, you’ll need to figure out how to replace your employment income to cover your expenses when you’re no longer working.
There are three potential sources of retirement income that can all work together to provide for you in retirement. They include your personal savings, savings through employer sponsor plans, like the Canada Life group savings plan you’re a part of and government retirement benefits.
Slide 9: Government retirement benefits
Slide to start the next section of the presentation. Has a photo of a retirement couple.
Presenter:
One of the income sources I mentioned was government retirement benefits. It’s money that you may be eligible to receive from the government each month once you retire. The amount you receive will depend on several factors including the number of years you worked in Canada, how much you earned and the number of years you lived in Canada.
Slide 10: Government retirement benefits - Overview
Lists the main government retirement benefits:
Canada Pension Plan (CPP)
Québec Pension Plan (QPP)
Old Age Security (OAS)
Guaranteed Income Supplement (GIS)
Presenter:
There are three types of government benefits that you may receive when you retire.
The Canada Pension Plan (CPP) or if you live in the province of Quebec, the Quebec Pension Plan (QPP)
Old Age Security (OAS)
And the Guaranteed Income Supplement (GIS)
Let’s take a closer look at each of them, starting with CPP and QPP
Slide 11: CPP and QPP
Explains how CPP and QPP provide financial support for retirement, disability, or death. The amount depends on age, contributions, and average earnings. Benefits can start between ages 60 and 70 (up to 72 for QPP).
Presenter:
CPP and QPP will provide you with financial assistance in your retirement. You may also be eligible for benefits in the event of your disability or death, however, for today's presentation we are going to focus on the retirement benefit.
The amount you receive is based on:
the age you decide to start your pension
how much and for how long you contributed to the CPP/QPP
your average earnings throughout your working life
CPP and QPP amounts are reviewed each year and may be adjusted to account for inflation.
Slide 12: You’re contributing to CPP or QPP with each pay
Shows a sample pay stub illustrating deductions for CPP, EI, RRSP, and taxes.
Presenter:
If you’re new to Canada, there is a lot to learn about the financial system and one thing you and your family may be doing is trying to account for the various deductions that you see coming off of your pay stub.
One of those deductions is for CPP, or QPP. In Canada, every working person over the age of 18 who earns more than a minimum amount ($3,500 per year) must contribute to one of these programs.
If you want to know how much you’re contributing, you can review your paystub to find out how much is deducted from your pay.
Slide 13: OAS and GIS
Describes OAS and GIS:
OAS is based on residency in Canada after age 18
GIS is for low-income OAS recipients
Both have income limits
Presenter:
Next, let’s take a look at OAS and GIS.
Unlike CPP/QPP you will not see deductions coming off of your pay for the other Government benefits. Old Age Security is funded out of general tax revenues.
Also unlike the CPP/QPP, this benefit isn’t based on how much you’ve contributed. Instead, it’s based on how long you’ve lived in Canada after the age of 18.
The Guaranteed Income Supplement (GIS) is a secondary benefit available to OAS recipients who have a low income.
While OAS and GIS aren’t based on what you earned during your career in Canada, there are some income limits.
For example, in 2025 you wouldn’t qualify for OAS if you earned more than $148,451 in 2024.
And for GIS your income must be low. For example, in 2024, a single individual would have needed an income under $22,056 to quality.
These amounts are reviewed and may be adjusted 4 times per year, so always check with the Government of Canada to understand your own personal situation.
Slide 14: Snapshot of 2024 government benefits at age 65
Provides benefit monthly amounts:
CPP/QPP max: $1,433; average: $808
OAS max: $728
Total annual max: $2,161; average: $1,536
Amounts vary and are adjusted regularly.
Presenter:
So, how much could you receive from government benefits when you retire? As we have reviewed, the benefits payable will be based on many factors, so here we are showing you both the maximum monthly amounts payable as well as the averages.
For CPP and QPP if you were 65 years old today, the maximum monthly benefit you could receive is $1, 433 per month. Most people don’t receive the maximum benefit, so we have also included the average amount payable. At the end of 2024, the average amount payable was $808 per month.
For OAS, the maximum monthly amount payable is $727 at the start of 2025. We do not have data around the average amount payable.
When we combine the two government benefits, the maximum monthly amount payable is $2,162 per month. When doing your retirement planning, it’s important to obtain your own personal benefit estimates….
Slide 15: CPP and OAS
Encourages visiting government websites to estimate your future CPP, QPP, and OAS benefits.
Presenter:
You can obtain your CPP/QPP and OAS estimates today to assist you with your retirement planning.
For CPP and OAS, visit the Government of Canada website at Canada.ca, and for those who are eligible for QPP, visit the Government of Quebec website at retraitequebec.gouv.qc.ca
Slide 16: Retiring outside of Canada
Explains that Canada has agreements with other countries to recognize pension contributions. CPP, QPP, and OAS can be paid in local currency abroad.
Presenter:
Canada is diverse - and it is quite possible - that you may have lived and/or worked outside of Canada and eligible for pensions and benefits from either Canada and/or another country because of a social security agreement.
A social security agreement is an international agreement that is held between Canada and another country that coordinates the pension programs between both countries.
A social security agreement can help you qualify for benefits by allowing you to combine your periods of contribution or periods of residency in Canada with your periods of contribution or periods of residency in the other country to meet the minimum eligibility criteria.
It can also reduce or eliminate restrictions based on citizenship or on payment of pensions abroad.
It is recommended for those who this may apply to understand the details relating to you as it varies from agreements established between countries. Obtain advice from an international tax professional who is familiar with the rules in both countries.
Visit canada.ca for full details on the government retirement benefits and seek tax advice to assist you with your particular situation.
CPP
Eligibility - Pensions and Benefits - Canada.ca
QPP
https://www.rrq.gouv.qc.ca/en/programmes/regime_rentes/ententes_internationales/Pages/ententes_internationales.aspx
Slide 17: Registered savings accounts
Introduces registered savings accounts as tools for retirement and other financial goals.
Presenter:
The two other retirement income sources I mentioned were personal savings and employer sponsors plans. Both of those sources can include savings in registered accounts.
Slide 18: Individual and group registered accounts
Explains that registered accounts can be personal or employer-sponsored. Group accounts are only available through employers.
Presenter:
We have reviewed how Government Benefits can assist with some of your income in retirement, now let’s discuss personal savings and employer sponsored registered accounts.
Registered accounts can be part of your personal savings, your employer-sponsored plan, or both.
Personal savings can include individual registered savings accounts. You can open them at a financial institution of your choice.
Employer sponsored plans can include group registered savings accounts. They are only available through your employer.
Plan rules are established by your employer, following the rules set out in applicable laws and legislation.
Slide 19: Registered savings accounts for different financial goals
Lists types of accounts:
RESP for education
FHSA for first home
TFSA for general savings
RRSP, DPSP, RPP for retirement
Presenter:
There are different types of registered savings accounts to help you save for various financial goals. Depending on where you have moved from, you may feel that the taxes we pay in Canada are higher than what you are used to. Registered accounts offered by the Government of Canada gives tax-incentives and sometimes grants.
If you are saving for your first home, you can use the First home savings account to help you save and buy
If your goals are around saving for a child’s education, the Registered Education Savings Plan (RESP) is available
A tax-free savings account is good for any savings goal you may have, both short and long term
And if you are saving for retirement, the registered accounts available are Registered Retirement Savings Plans (RRSPs), Deferred Profit Sharing Plans (DPSPs) and Registered pension plans (RPPs).
All these plans are designed to assist Canadians with achieving various financial goals, however the focus of our session today is around retirement, and we’ll focus on RRSPs. If you are interested in learning more about TFSAs, RESPs and FHSAs you can find information at canadalife.com or through the Government of Canada website.
Slide 20: Registered savings accounts for retirement income
Details:
RRSPs can be individual or group
DPSPs and RPPs are group-only
All offer tax-sheltered growth
Presenter:
There are different types of registered savings accounts for retirement income. RRSPs are the most common as you can open an individual RRSP at your financial institution, or sometimes it’s available as a group plan through your place of employment.
There are other types of registered savings accounts that you may have access to at your place of employment which could include Deferred Profit Sharing Plans and Registered Pension Plans. You may or may not have access to these at work. If you are unsure what types of retirement savings accounts you have access to at your place of employment, you will want to check in with your employer for the details.
There are some differences between RRSPs, DPSPs and RPPs, however the one feature that is the same is tax-deferred deposits and the tax-sheltered investment growth which they can offer. In this next section we are going to spend time discussing RRSPs in more detail.
Slide 21: RRSP overview
Describes RRSPs:
Registered with CRA
Require prior Canadian income and tax filing
Intended for long-term retirement savings
Presenter:
What is an RRSP?
A savings account that’s registered with the Canada Revenue Agency (CRA) and gives you tax benefits for saving for retirement.
To open an RRSP, prior income in Canada is required and you have filed your income taxes for the previous year.
For long-term, retirement savings.
Slide 22: RRSPs have tax advantages
Explains:
Contributions reduce taxable income
Investment growth is tax-sheltered
Taxes are paid upon withdrawal, usually in retirement
Presenter:
There are many tax advantages for saving for your retirement in an RRSP.
The main up-front advantage is that you don’t have to pay tax on the money you contribute to an RRSP in the year you make the contribution. You receive a tax deduction, and your money can grow tax-deferred to retirement.
This leads us to the future advantages this can provide. Growth on your investments is also not taxable as it is earned, which means more money stays invested to benefit from compound growth over the long-term. When you start withdrawing your money from your savings, that is the time that you will start paying tax on the amounts with withdraw in any year. However, in retirement you may be making less money and paying less tax at that time.
Let’s review these tax-advantages in more detail…
Slide 23: RRSP up-front tax advantages example
Shows how a $5,000 RRSP contribution reduces taxable income and saves $1,250 in taxes on a $60,000 salary.
Presenter:
The first example we will review is how the tax savings we can receive helps us keep more money in our pockets today.
For example, let's say you earn $60,000 in taxable income and contribute $5,000 to your RRSP. That $5,000 contribution reduces your taxable income to $55,000. Assuming a 25% tax rate, contributing $5,000 to your RRSP could reduce your annual tax bill by $1,250
Slide 24: RRSP future tax advantages example
Bar graph that illustrates that tax-deferred investments grow more over time. A $5,000 investment grows to $21,459 in a registered account vs. $15,027 in a non-registered one.
Presenter:
Here’s an example of the long-term tax benefits an RRSP can provide. When your investments can grow without paying taxes on your investment growth, you end up saving a lot more over the long-term. It’s because when taxes aren’t deducted from your earnings, there’s more money that can stay invested and benefit from compound growth.
In this example we’re assuming your marginal tax rate is 25% and you earn 6% a year on your investments. As shown, if you invest $5,000 in a non-registered account, you’ll end up with just over $15,000 after 25 years. Now, if instead your investments are held in a registered tax-deferred account, like an RRSP, you’ll end up with almost $21,500 after 25 years. That’s $6,432 more.
Now remember, even though your money was able to grow tax-free, you’ll still need to pay income tax on the amounts you withdraw when you’re ready to start taking it out for retirement.
Slide 25: Investment options
Explains that RRSPs can hold various investments, depending on what’s offered by the financial institution where they’re held.
Presenter:
While an RRSP is a type of registered account, it’s not an investment of itself. RRSPs can potentially hold the same types of investments as other investment accounts you may have. The investments available to you will depend on what the options are at the financial institution your RRSP is held.
Slide 26: Contribution rules
You can contribute to an RRSP until December 31 of the year you turn 71, up to your CRA deduction limit.
Presenter:
As an RRSP is a tax advantaged savings plan, there are limits as to how much we can contribute to RRSPs each year. To receive the tax deduction, you must meet the contribution rules:
Be 71 years of age or younger.
Contribute up to the amount indicated in your deduction limit. Your deduction limit is established by many factors, including income you’ve received in your previous working years in Canada, contributions to other registered plans, and previous contributions you have made to an RRSP.
In Canada, each individual is responsible for contributing within their deduction limit and ensuring they stay within it…
Slide 27: Where can I find my RRSP deduction limit?
Lists sources:
Notice of Assessment
CRA MyAccount
Tax Information Phone Service
Presenter:
To find out what your deduction limit is you will need to have filed at least one tax return in Canada. Once you have submitted your annual tax return, the government will provide you with a Notice of Assessment. Included in your Notice of assessment is your RRSP deduction limit for that year.
You can also log into your MyAccount at canada.ca, access your account through the mobile app, or call CRA’s automated service at 1-800-267-6999.
Slide 28: Registered Retirement Income Fund (RRIF) Annuity
Introduces LIF and RRIFs annuities as ways to convert savings into retirement income.
Explains that different account types (RRSP, DPSP, RPP) convert into income streams. Taxes are paid when funds are withdrawn.
Presenter:
You may be wondering, what happens when you’re done saving and you’re ready to retire and start withdrawing money to live off of.
The first step is to understand what kind of registered account you have, this will provide the rules around how to receive payments in your retirement.
Be aware of what type of account you have
When you are ready to use your savings for retirement income, these registered accounts will need to be converted to another account or product type to allow for regular payments.
No matter what your savings are converted to, when you withdraw the money, you will pay income tax on the payments you receive. If you recall, you received the tax savings during your working years, this will be the first time this money will be taxed.
Depending on what your account has been converted to, there are different withdrawal rules and features that may affect your retirement income.
If you’re interested in learning more about receiving income in your retirement and how these various plans work, you’ll want to check out our other Canada Life webinars.
Slide 29: Using your group savings plan to save for retirement
Slide to introduce next section of the presentation. Includes a photo of a loving, elderly couple drinking coffee together.
Presenter:
Before we wrap up today’s session, I want to review some of the ways that your group savings plan can help you save for retirement.
Slide 30: Using your group savings plan to save for retirement
Highlights group plan features:
Payroll deductions
Low fees
Multilingual support
Employer contributions
Presenter:
Payroll deductions
When you save through payroll deductions, you’re automatically saving each time you’re paid (you’ll notice one of the deductions on your paystub is contribution into your group savings plan).
You can enjoy immediate tax-savings when your payroll deductions are directed to a registered group plan, like a group registered retirement savings plan (group RRSP ) or registered retirement plan (RPP).
Low fees
The fees you pay on investment funds you buy through your group savings plan are typically lower than what you’d pay for with comparable individual investments.
You’re benefiting from group buying power – like how you pay less when you buy in bulk.
Employer contributions
Some plans have employer contributions as one of their features. This is when your employer contributes to your plan up to a certain amount.
Your group savings plan is the only place you can save where you’ll get “free money” for doing so.
When employer matching is available, if you don’t take advantage of this feature, you’re missing out.
We can also provide you with access to general support in over 240 languages
Slide 31: Ask us your questions, in any language you speak
Support is available in 240 languages. Canada Life can connect you with an interpreter when you call.
Presenter:
When you call Canada Life, Monday – Friday between the hours of 8am and 8PM Eastern, we can have an interpreter join the call at no cost. The interpreter will be able to translate the call with one of our representatives to your language of choice so that you can speak comfortably and have your questions answered clearly.
Slide 32: My Canada Life at Work – Your online portal to your savings
Encourages users to register or sign in at mycanadalifeatwork.com. Tech support is available by phone.
Call the Canada Life Tech Line at 1-888-222-0775.
Presenter:
You can also access your plan online 24 hours a day by signing in to My Canada Life at Work.
If you haven’t signed in before, you’ll need to register using your policy and certificate number. You can find these numbers on the second page of your mailed statements under key information. If you’ve previously received an email inviting you to register, it may also have this information.
For help signing in, call our technical support line at 1-888-222-0775, weekdays from 8 a.m. to 8 p.m. ET.
Slide 33: What can I do on My Canada Life at Work?
Lists features:
View balances
Change investments
Update beneficiaries
Access statements and tax receipts
Set and track retirement goals
Presenter:
What can I do on My Canada Life at Work?
Review and manage your savings plans
Find your total balance
Review or change your investment selection (if applicable, not all members can change their investment selection online)
Update your beneficiaries (if applicable)
Retrieve your statements and tax receipts
Set and track a retirement goal
And more!
Slide 34: Retirement goal tool
Describes a tool to estimate how much you need to save for retirement, including government and personal savings.
Presenter:
One of the most useful features of My Canada Life at Work is the Retirement goal tool.
It’s an easy-to-use calculator that you’ll find on the Overview screen when you sign in.
It can help you figure out how much savings you need to retire
You can include income sources that you’ll have outside of Canada Life, like government benefits and other personal savings in your calculations.
Slide 35: Want help?
Provides contact information for help with your plan and the online portal. Disclaimer at bottom of page reads: The information in this publication is general in nature and is intended for educational purposes only. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur. Past performance is not necessarily indicative of future performance.
Presenter:
Thank you for watching. I hope we’ve achieved our goal of providing you with an introduction to the Canadian retirement system.
We hope you’ll watch more webinars to keep learning about retirement and your group savings plan.
Whether you’re just starting out with your Canada Life group savings plan, or want a refresher on its features, this webinar will help learn more and unlock its saving potential.
Learn more about:
- How your group savings plan can help you save more, faster
- Other perks included with your plan
- How to monitor and manage your savings on My Canada Life at Work™
Slide 1: Your plan – Welcome to Canada Life
This is the cover slide introducing the presentation. It sets the stage for an overview of the Canada Life group savings plan.
Presenter:
Welcome to the Your Plan – Welcome to Canada Life webinar.
Slide 2: Agenda
Lists the main topics covered:
Features to help you save
Are you enrolled in your plan?
Managing your savings online
Other perks of being a Canada Life plan member
Best practices
Presenter:
We have developed our webinar to provide information that will help members, who have access to a group savings plan, manage their savings with confidence, using the tools and resources that are available with Canada Life.
Features to help you save
Are you enrolled in your plan?
Managing your savings online
Other perks to being a Canada Life plan member
Best practices
Slide 3: But first…
Introduces the concept of a group savings plan. Notes that all plans are different and encourages reviewing your member booklet or asking your employer for a summary.
Presenter:
Before we dive in, we are going to take a few moments to level set, as many of you joining us today have different levels of experiences, knowledge and are in a different stage in their savings journey.
When we are looking at group savings plans, it is helpful to keep in mind they are not a typical savings plan, that you can open at a financial institution of your choice.
A group savings plan is set up by an employer to help their employees secure a financial future and is part of their overall workplace benefits. For employees, it is an easy way to save for retirement or other goals.
The investments available in your group savings plan will either be selected for you or you will be given the option of choosing yourself, from a menu of options that will be specific to your group savings plan.
As some of the features we’re reviewing today may not apply to your group savings plan, an action item for you to take away, could be to review your member booklet.
Your member booklet is a great resource that lists your group savings plan provisions.
Slide 4: Features to help you save
Title slide introducing the section on savings features.
Presenter:
We are now going to move into the features of a group savings plan, that help you save.
Let’s start by discussing the power of payroll deductions and the paying yourself first method…
Slide 5: Payroll deductions – Pay yourself first
Explains that contributions are deducted from your pay before you spend, helping you save automatically. This is referred to as “paying yourself first.”
Presenter:
When it comes to personal finances, one of the most important things you can do is pay yourself first. This means putting aside money for your own savings and investments before paying any other bills or expenses. By doing this, you ensure that you’re always saving and investing for your future, no matter what else is going on in your life.
When you’re enrolled in a group savings plan, like the one you have with Canada Life, you’re automatically saving each time you’re paid through payroll deductions.
You can see these deductions on your paystub, where you’ll notice one of the payroll deductions taken from your cheque are contributions into your group savings plan.
Slide 6: Payroll deductions – Immediate tax savings
Shows a comparison table of take-home pay with and without a 4% RRSP contribution on a $50,000 salary. The table illustrates that contributing reduces taxable income and results in only a small reduction in net pay. Visual description: A table comparing gross pay, payroll contribution, taxable pay, tax, and take-home pay for two scenarios: no contribution and 4% contribution.
Presenter:
Did you know that through payroll deduction, you can enjoy immediate tax-savings when your payroll deductions are directed to a group registered retirement savings plan, a group RRSP, or registered retirement plan, an RPP.
It’s because income tax isn’t deducted from the amount you’re contributing. Instead, it’s only deducted from the amount you take home. This makes saving through payroll deductions more affordable than saving using after-tax dollars.
Let’s review an example.
Let’s say I am earning $50,000 per year and would like to contribute 4% of my pay to my group retirement plan. If I’m paid ever two weeks, that works out to $1,923 each pay. Contributing 4% works out to $77 each pay.
This reduces my taxable pay to $1,846. I pay tax on the lower amount, which means at the end of the day when my pay is deposited to my bank account, it isn’t $77 less but is reduced by only $54. In this example, it cost me $54 to contribute $77 because I don’t pay tax on my contribution.
Remember, this is just an example for illustration purposes, and your plan types and associate plan provisions may vary.
Slide 7: Payroll deductions – Benefit from dollar-cost averaging.
There’s a graphic on this slide to help explain dollar-cost averaging. It shows the fluctuating price per unit of an investment over time. There’s a line though it that indicates the average price of the investment.
Presenter:
Are you one of the many Canadians who are concerned about where stock markets are headed? When it comes to investing your money, your main goal is no doubt to grow and preserve your wealth.
There are some investors that try to take advantage of the markets by trying to anticipate when investment prices will go up or down. This is so they can buy the investments at the lowest price and then sell them at their highest price, to make the most return on their investments. Sounds good right? Well unfortunately, the problem with this strategy is that it is considered a risky strategy, since we can’t predict the future.
Now dollar cost averaging is a different strategy where you invest the same amount of money on a regular basis, regardless of the price of the investment.
With dollar-cost averaging on the other hand, you invest a little money regularly, rather than a larger amount once in a while. By doing this you avoid the risk of only investing your money when the price is high and increase your chance of investing some of it when costs are low. It essentially averages out the cost of your investment.
The graph on our screen is showing an illustration of a unit price for an investment, that fluctuates between $14 and $20 over a period of time By investing $100 each month at differ prices, the investor in this example was able to buy their investment fund units at an average price of $17.25.
Now let’s tie this strategy back to your group savings plan. By making regular, repeated contributions through automatic payroll deductions, you receive the advantages of dollar-cost averaging. You buy the same dollar amount each time so when prices are low, you get more units. When prices are high, you get fewer units. This takes the guesswork out of when to invest and when not to invest.
Slide 8: More benefits of dollar-cost averaging
Lists three more benefits of dollar-cost averaging:
Keeps emotions out of investing decisions
Keeps you in the market
Beneficial for most investors – including ones who are just starting out
Presenter:
Before moving on, we would like to highlight additional benefits of the dollar cost averaging strategy.
It removes emotion from investing – Since you’re investing regularly rather than based on the positive or negative feelings you may experience when the market changes, it’s harder for your emotions to interfere with your decisions.
It keeps you in the market – Instead of trying to buy your investment at its bottom price and sell at its top price (which is called market timing and is extremely challenging to do as we can’t predict the future), dollar-cost averaging keeps your money invested so it’s there when the market rebounds.
Finally, dollar cost average is ideal for new investors – Because it allows you invest small amounts, it’s perfect for investors who are just starting out.
Slide 9: Low fees
Explains that group plans offer lower investment fees due to group buying power. There are no account or transaction fees, and investment management fees are lower than individual plans.
Presenter:
Another features of your group savings plan, that we are highlighting today, are the associated fees you pay on the investment funds you buy through your group savings plan, that will be typically lower than the fees associated when you invest outside of your group saivngs plan individually.
Your group plan provides group buying power. It is comparable to when you pay less when you buy in bulk.
There are no account fees, investment purchase or transfer fees and low investment management fees (known as IMFOEs)*.
Slide 10: Advantages of lower investment management fees
Illustrates how lower fees result in higher returns over time.
Visual description: A bar graph comparing investment growth over 25 years with a 5% return (group plan) vs. 4% return (individual plan). The group plan shows $6,432 more in growth.
Presenter:
Let’s take a closer look at investment management fees and fund operating expenses.
They’re the fees charged by investment managers for their professional services and for the operating expenses of the fund.
Investment management fees and operating expenses are expressed as a percentage that’s deducted from the funds value. That means the smaller the fees, the more of the fund’s returns are left for you.
This graphic illustrates how lower fees can lead to more savings over time.
In this example, my sibling and I have inherited $25,000 each. As not all Canadians have access to group savings plans, my sibling invests their $25,000 at their financial institution down the street from where they live.
My inheritance, was placed in my group savings plan.
For illustration purposes, we are going to assume we have invested the same way and have the same performance. The only difference will be the fees associated with my group savings plan are 1% lower than my sibling fees.
If we take a take a look over 25 years, the money grows in both plans, however in my group savings plan, will have a higher amount.
Another great opportunity for our viewers will be to review the fees associated with your group plan by signing into their profile on the member site, My Canada Life at Work.
Slide 11: Employer contributions
Notes that some plans include employer contributions, often as a matching program. Not contributing means missing out on part of your compensation.
Presenter:
Some group savings plans have employer contributions as one of their features. This is when your employer contributes to your plan up to a certain amount.
When employer matching is available, if you don’t take advantage of this feature, you’re potentially missing out.
As not all plans have this feature, we are not going to spend much more time reviewing this feature except to encourage our viewers to review their member booklets, that we highlighted earlier in our webinar, to review the contribution formula of your group plan, as there may be an opportunity to maximize this benefit.
Slide 12: Give more of your investments the group advantage
Encourages transferring savings from other institutions into your group plan. Instructions are provided for accessing the transfer form and getting help.
Presenter:
Based on the features of the group plan we have reviewed; some our viewers may be wondering if it may be possible to consolidate external savings into a group plan.
It will depend on your group savings plan and once again you can verify by referencing the member booklet.
Slide 13: Are you enrolled in your plan?
Title slide introducing the section on enrollment.
Presenter:
Now that we’ve discussed some of the best features of a group savings plan, let’s cover off how to enroll.
Slide 14: Ways to enrol
Lists three enrollment methods:
Online with guest ID and password
Auto-enrollment by plan administrator
Paper application submitted to administrator
Presenter:
How a member enrolls in their group savings plan, depends on the group savings plan’s design and it’s not the same for everyone.
Enrolment can be done online where your employer will provide you with the details to get started.
Enrolment may be automatic and completed by your employer, or you may be provided an enrolment guide that includes a paper application that will need to be completed.
Slide 15: How to check if you’re enrolled
Suggests checking your paystub, calling Canada Life at 1-800-724-3402, weekdays from 8 a.m. to 8 p.m. ET.
, or asking your plan administrator to confirm enrollment.
Presenter:
If you aren’t sure if you’re enrolled in your plan, there’s a few ways you can check:
Review your paystub to confirm if contributions are being taken off for retirement savings.
Call Canada Life at 1-800-724-3402, weekdays from 8 a.m. to 8 p.m. ET.
Ask your plan administrator.
Slide 16: Managing your plan online
Title slide introducing the section on online account management.
Presenter:
Now that we’ve discussed the features of your plan and how you can get started savings, let’s talk about how you can manage your savings on the member site, My Canada Life at Work, your online portal.
Slide 17: My Canada Life at Work – Your online portal to your savings
Provides the website address: mycanadalifeatwork.com and tech support number: 1-888-222-0775.
Presenter:
Signing in to My Canada Life at Work is the first step to managing your savings throughout your savings journey.
If you haven’t signed in before, today is the day my friends, you’ll need to register using your policy and certificate number. You can find these numbers on the second page of your mailed statements under key information.
If you’ve previously received an email inviting you to register, it may also have this information.
For help signing in, we have technical support line at 1-888-222-0775 that is there to provide support and guidance, weekdays from 8 a.m. to 8 p.m. ET.
Slide 18: What can I do on My Canada Life at Work?
Lists features of the site:
View balances
Change investments
Update beneficiaries
Access statements and tax receipts
Set and track retirement goals
Presenter:
What can I do on My Canada Life at Work? It is more like what can’t you do.
Once you sign in you are able to:
Review and manage your savings plans any day at any time
Find your total balance and personal rate of return
Review or change your investment selection. Let’s pause here for a moment as we would like to talk about how your investment choices can make a big impact on how much you’re ultimately able to save before retirement
A best practice is to go online regularly to review your investment selections to make sure they’re still in line with your goals.
If you aren’t sure how to choose the best investments for you, join us for our upcoming webinars that teach the basics of investing later this year and the tools and support that are available/
Slide 19: Add or change a beneficiary (if applicable)
Step-by-step instructions for updating beneficiaries through the online portal and a screen shot of the website.
Presenter:
When you are signed in, you may want to make sure your beneficiary is up to date, if applicable.
This is an area many members have questions about.
Let’s review how to do it online - it can take less than 5 minutes.
Here’s how to do it online:
Select the person icon at the top right of your screen.
Select Your profile.
Then choose Beneficiaries and dependants and then view.
Select Edit beneficiaries for any group savings plan you would like to make changes to.
Slide 20: Our favourite feature – Retirement goal tool
Describes a tool that helps estimate how much you need to save for retirement, including government and personal savings.
Presenter:
One of the most useful features of My Canada Life at Work is the Retirement goal tool.
It’s an easy-to-use calculator that you’ll find on the Overview screen when you sign in.
It can help you figure out how much savings you need to achieve your desired retirement.
Slide 21: Retirement goal tool - results
Shows the outcome of using the retirement goal tool.
Visual description: Screenshot of summary showing projected savings needs and progress toward retirement goals.
Presenter:
Once completed, you will receive 1 of 2 empowering messages.
‘Congratulations! You are on track to achieving your retirement income goals’.
Or, it may tell you that you are not on track and provide you suggestions to get you on track or back on track.
Slide 22: Update your contribution amount
Gives instructions for increasing contributions based on your retirement goal tool results. You can do this in two ways:
You can do it online by navigating to the contributions part of My Canada Life at Work
Or by contacting your plan administrator directly
Presenter:
Your retirement goal tool results may lead you to wanting to make changes to the amount you’re contributing. This is something that you may be able to do online directly through Canada Life, or you may have to contact your payroll team to make these changes.
Slide 23: Don’t wait to sign-in
States that members who log in to the site have 30% higher average savings balances than those who haven’t. The statistic sourced from Canada Life data as of August 31, 2024.
Presenter:
We encourage members to not delay signing in to My Canada Life at Work.
Digitally engaged employees fare better in their retirement savings.
Members who have logged into My Canada Life at Work have average savings balances that are 30% higher than those who haven’t.
Slide 24: More perks of your plan
Title slide introducing additional benefits of being a plan member.
Presenter:
Now let us focus on the perks of your plan that can help you with your overall wellbeing.
Slide 25: Workplace Strategies for Mental Health
Describes free resources for mental well-being, including topics like conflict management, accommodations, and mental health tips. Includes a screenshot of the landing page and site url: workplacestrategiesformentalhealth.com.
Presenter:
Workplace Strategies for Mental Health is a leading online source of free, practical tools, resources and programs designed to help all Canadian employers and employees improve psychological health and safety in the workplace and beyond.
Here are examples of topics covered:
Managing workplace conflict and bullying
Approaches for workplace accommodations
Tips for improving and managing your mental health
Through workplace strategies for mental health:
You can increase your knowledge and awareness of workplace psychological health and safety
Help respond to mental health issues at work
If you’re a manager, it can be a great resource for strategies and tools to respond to employee issues at work.
Slide 26: Credit Counselling services
Lists two services:
Credit Counselling Society (nomoredebts.org, 1-877-636-8999)
Solve Your Debts (solveyourdebts.com, 1-888-753-2227)
Presenter:
To help improve your financial wellness, we have partnered with the award-wining, not for profit Credit Counselling Society and the Credit Counselling services Atlantic Canada. If you’re not sure how to manage your debt, credit counselling may be able to help.
Your group savings plan gives you access to certified credit counsellors who you can talk with you confidentially. They’ll ask members how they were referred, and members should mention they’re a Canada Life member.
Slide 27: Wills and estate planning
Outlines services available at discounted rates:
Online will creation
Estate planning guidance
Executor support
Presenter:
Estate planning doesn’t have to be costly or time consuming. Your plan includes discounted wills and estate planning services you can access online.
Create a legal will online
Discounted rate of $50+ HST for Canada Life plan members (regular price $249+ HST)
+ $19/year for access to a digital vault and unlimited edits to your will so you can make changes as your personal situation evolves
Includes power of attorney documents
Estate planning
Personalized guidance and support from estate experts
Preferred pricing with a 5% discount for services for Canada Life members
Executor support
Free online executor support for you or your appointed executor ($80 value)
Slide 28: Why does it matter?
States that half of Canadian adults do not have a will.
Explains that dying intestate means your estate is distributed by law, which may not reflect your wishes and could create tax burdens for your loved ones.
Presenter:
Why is estate planning important?
Half of Canadian adults say they don’t have a will and half of seniors aged 65+ have not updated their wills in the last 5 years.
If you die without a will in Canada or a designated beneficiary on your registered accounts (if applicable) , your money, assets and debts are put into an estate. A court-appointed representative closes your financial affairs and distributes your assets according to the rules and regulations of your province. Besides a loss of control over dispersal of assets, there are also potential tax burdens that can be passed on.
Slide 29: Accessing credit counselling and wills and estate planning services online
Instructions for accessing these services through My Canada Life at Work along with a screenshot:
Sign in
Select “Options for you”
Choose “Learn more” for the desired service
Presenter:
To benefit from discounted rates for credit counselling and wills and estate planning services, you’ll need to contact them through the links provided on My Canada Life at Work.
You’ll find the links under the “Options for you” tab when you sign in.
Slide 30: Saving for Life
Describes educational resources:
Monthly webinars. Register at canadalife.com/saving-for-life-webinars.
Biannual newsletters with plan updates
Self-serve tools on My Canada Life at work and canadalife.com/smartpath
Presenter:
Would you like to continue your retirement and savings education journey?
Consider registering for more of our webinars on a variety of different topics that members have been requesting.
Keep an eye on your email inbox for the semi-annual Savings for Live newsletter which will provide you insights about your plan and your savings goals.
If you’re not receiving it, registering on My Canada Life at Work can help ensure we have your email address on file.
Head over to canadalife.com/smartpath to access articles, videos and calculators
Slide 31: Best practices
Includes 5 colourful icons with one tip below each:
Reading your member booklet
Enrolling when eligible
Signing in regularly
Increasing contributions when possible
Using available tools and resources
Presenter:
Let’s finish by reviewing what you can do to make the most of your plan:
Make sure you understand what’s available to you by reading your member booklet.
Enrol in your plan as soon as you’re eligible to join – don’t wait to enjoy its benefits.
Sign into My Canada Life at Work and review your group savings plans regularly.
Increase your contribution amount when you can, if your plan allows you to and
Use the tools and resources available to you to support your overall well-being.
Slide 32: Want Help?
Contact information for Canada Life:
Help with your plan
1-800-724-3402 8 a.m. to 8 p.m. ET Monday-Friday
Help with My Canada Life at Work
Tech Line 1-888-222-0775
Bottom of the slide has the following disclaimer and trademark line: The information in this publication is general in nature and is intended for educational purposes only. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur. Past performance is not necessarily indicative of future performance.
Presenter:
Our goal was to share with you how your group savings plan can play big role in helping you achieve the financial goals you have set for yourself and your desired retirement lifestyle.
Be sure to watch our other webinars to keep learning about money and about your group savings plan.
Slide 1: Your plan – Welcome to Canada Life
This is the cover slide introducing the presentation. It sets the stage for an overview of the Canada Life group savings plan.
Presenter:
Welcome to the Your Plan – Welcome to Canada Life webinar.
Slide 2: Agenda
Lists the main topics covered:
Features to help you save
Are you enrolled in your plan?
Managing your savings online
Other perks of being a Canada Life plan member
Best practices
Presenter:
We have developed our webinar to provide information that will help members, who have access to a group savings plan, manage their savings with confidence, using the tools and resources that are available with Canada Life.
Features to help you save
Are you enrolled in your plan?
Managing your savings online
Other perks to being a Canada Life plan member
Best practices
Slide 3: But first…
Introduces the concept of a group savings plan. Notes that all plans are different and encourages reviewing your member booklet or asking your employer for a summary.
Presenter:
Before we dive in, we are going to take a few moments to level set, as many of you joining us today have different levels of experiences, knowledge and are in a different stage in their savings journey.
When we are looking at group savings plans, it is helpful to keep in mind they are not a typical savings plan, that you can open at a financial institution of your choice.
A group savings plan is set up by an employer to help their employees secure a financial future and is part of their overall workplace benefits. For employees, it is an easy way to save for retirement or other goals.
The investments available in your group savings plan will either be selected for you or you will be given the option of choosing yourself, from a menu of options that will be specific to your group savings plan.
As some of the features we’re reviewing today may not apply to your group savings plan, an action item for you to take away, could be to review your member booklet.
Your member booklet is a great resource that lists your group savings plan provisions.
Slide 4: Features to help you save
Title slide introducing the section on savings features.
Presenter:
We are now going to move into the features of a group savings plan, that help you save.
Let’s start by discussing the power of payroll deductions and the paying yourself first method…
Slide 5: Payroll deductions – Pay yourself first
Explains that contributions are deducted from your pay before you spend, helping you save automatically. This is referred to as “paying yourself first.”
Presenter:
When it comes to personal finances, one of the most important things you can do is pay yourself first. This means putting aside money for your own savings and investments before paying any other bills or expenses. By doing this, you ensure that you’re always saving and investing for your future, no matter what else is going on in your life.
When you’re enrolled in a group savings plan, like the one you have with Canada Life, you’re automatically saving each time you’re paid through payroll deductions.
You can see these deductions on your paystub, where you’ll notice one of the payroll deductions taken from your cheque are contributions into your group savings plan.
Slide 6: Payroll deductions – Immediate tax savings
Shows a comparison table of take-home pay with and without a 4% RRSP contribution on a $50,000 salary. The table illustrates that contributing reduces taxable income and results in only a small reduction in net pay. Visual description: A table comparing gross pay, payroll contribution, taxable pay, tax, and take-home pay for two scenarios: no contribution and 4% contribution.
Presenter:
Did you know that through payroll deduction, you can enjoy immediate tax-savings when your payroll deductions are directed to a group registered retirement savings plan, a group RRSP, or registered retirement plan, an RPP.
It’s because income tax isn’t deducted from the amount you’re contributing. Instead, it’s only deducted from the amount you take home. This makes saving through payroll deductions more affordable than saving using after-tax dollars.
Let’s review an example.
Let’s say I am earning $50,000 per year and would like to contribute 4% of my pay to my group retirement plan. If I’m paid ever two weeks, that works out to $1,923 each pay. Contributing 4% works out to $77 each pay.
This reduces my taxable pay to $1,846. I pay tax on the lower amount, which means at the end of the day when my pay is deposited to my bank account, it isn’t $77 less but is reduced by only $54. In this example, it cost me $54 to contribute $77 because I don’t pay tax on my contribution.
Remember, this is just an example for illustration purposes, and your plan types and associate plan provisions may vary.
Slide 7: Payroll deductions – Benefit from dollar-cost averaging.
There’s a graphic on this slide to help explain dollar-cost averaging. It shows the fluctuating price per unit of an investment over time. There’s a line though it that indicates the average price of the investment.
Presenter:
Are you one of the many Canadians who are concerned about where stock markets are headed? When it comes to investing your money, your main goal is no doubt to grow and preserve your wealth.
There are some investors that try to take advantage of the markets by trying to anticipate when investment prices will go up or down. This is so they can buy the investments at the lowest price and then sell them at their highest price, to make the most return on their investments. Sounds good right? Well unfortunately, the problem with this strategy is that it is considered a risky strategy, since we can’t predict the future.
Now dollar cost averaging is a different strategy where you invest the same amount of money on a regular basis, regardless of the price of the investment.
With dollar-cost averaging on the other hand, you invest a little money regularly, rather than a larger amount once in a while. By doing this you avoid the risk of only investing your money when the price is high and increase your chance of investing some of it when costs are low. It essentially averages out the cost of your investment.
The graph on our screen is showing an illustration of a unit price for an investment, that fluctuates between $14 and $20 over a period of time By investing $100 each month at differ prices, the investor in this example was able to buy their investment fund units at an average price of $17.25.
Now let’s tie this strategy back to your group savings plan. By making regular, repeated contributions through automatic payroll deductions, you receive the advantages of dollar-cost averaging. You buy the same dollar amount each time so when prices are low, you get more units. When prices are high, you get fewer units. This takes the guesswork out of when to invest and when not to invest.
Slide 8: More benefits of dollar-cost averaging
Lists three more benefits of dollar-cost averaging:
Keeps emotions out of investing decisions
Keeps you in the market
Beneficial for most investors – including ones who are just starting out
Presenter:
Before moving on, we would like to highlight additional benefits of the dollar cost averaging strategy.
It removes emotion from investing – Since you’re investing regularly rather than based on the positive or negative feelings you may experience when the market changes, it’s harder for your emotions to interfere with your decisions.
It keeps you in the market – Instead of trying to buy your investment at its bottom price and sell at its top price (which is called market timing and is extremely challenging to do as we can’t predict the future), dollar-cost averaging keeps your money invested so it’s there when the market rebounds.
Finally, dollar cost average is ideal for new investors – Because it allows you invest small amounts, it’s perfect for investors who are just starting out.
Slide 9: Low fees
Explains that group plans offer lower investment fees due to group buying power. There are no account or transaction fees, and investment management fees are lower than individual plans.
Presenter:
Another features of your group savings plan, that we are highlighting today, are the associated fees you pay on the investment funds you buy through your group savings plan, that will be typically lower than the fees associated when you invest outside of your group saivngs plan individually.
Your group plan provides group buying power. It is comparable to when you pay less when you buy in bulk.
There are no account fees, investment purchase or transfer fees and low investment management fees (known as IMFOEs)*.
Slide 10: Advantages of lower investment management fees
Illustrates how lower fees result in higher returns over time.
Visual description: A bar graph comparing investment growth over 25 years with a 5% return (group plan) vs. 4% return (individual plan). The group plan shows $6,432 more in growth.
Presenter:
Let’s take a closer look at investment management fees and fund operating expenses.
They’re the fees charged by investment managers for their professional services and for the operating expenses of the fund.
Investment management fees and operating expenses are expressed as a percentage that’s deducted from the funds value. That means the smaller the fees, the more of the fund’s returns are left for you.
This graphic illustrates how lower fees can lead to more savings over time.
In this example, my sibling and I have inherited $25,000 each. As not all Canadians have access to group savings plans, my sibling invests their $25,000 at their financial institution down the street from where they live.
My inheritance, was placed in my group savings plan.
For illustration purposes, we are going to assume we have invested the same way and have the same performance. The only difference will be the fees associated with my group savings plan are 1% lower than my sibling fees.
If we take a take a look over 25 years, the money grows in both plans, however in my group savings plan, will have a higher amount.
Another great opportunity for our viewers will be to review the fees associated with your group plan by signing into their profile on the member site, My Canada Life at Work.
Slide 11: Employer contributions
Notes that some plans include employer contributions, often as a matching program. Not contributing means missing out on part of your compensation.
Presenter:
Some group savings plans have employer contributions as one of their features. This is when your employer contributes to your plan up to a certain amount.
When employer matching is available, if you don’t take advantage of this feature, you’re potentially missing out.
As not all plans have this feature, we are not going to spend much more time reviewing this feature except to encourage our viewers to review their member booklets, that we highlighted earlier in our webinar, to review the contribution formula of your group plan, as there may be an opportunity to maximize this benefit.
Slide 12: Give more of your investments the group advantage
Encourages transferring savings from other institutions into your group plan. Instructions are provided for accessing the transfer form and getting help.
Presenter:
Based on the features of the group plan we have reviewed; some our viewers may be wondering if it may be possible to consolidate external savings into a group plan.
It will depend on your group savings plan and once again you can verify by referencing the member booklet.
Slide 13: Are you enrolled in your plan?
Title slide introducing the section on enrollment.
Presenter:
Now that we’ve discussed some of the best features of a group savings plan, let’s cover off how to enroll.
Slide 14: Ways to enrol
Lists three enrollment methods:
Online with guest ID and password
Auto-enrollment by plan administrator
Paper application submitted to administrator
Presenter:
How a member enrolls in their group savings plan, depends on the group savings plan’s design and it’s not the same for everyone.
Enrolment can be done online where your employer will provide you with the details to get started.
Enrolment may be automatic and completed by your employer, or you may be provided an enrolment guide that includes a paper application that will need to be completed.
Slide 15: How to check if you’re enrolled
Suggests checking your paystub, calling Canada Life at 1-800-724-3402, weekdays from 8 a.m. to 8 p.m. ET.
, or asking your plan administrator to confirm enrollment.
Presenter:
If you aren’t sure if you’re enrolled in your plan, there’s a few ways you can check:
Review your paystub to confirm if contributions are being taken off for retirement savings.
Call Canada Life at 1-800-724-3402, weekdays from 8 a.m. to 8 p.m. ET.
Ask your plan administrator.
Slide 16: Managing your plan online
Title slide introducing the section on online account management.
Presenter:
Now that we’ve discussed the features of your plan and how you can get started savings, let’s talk about how you can manage your savings on the member site, My Canada Life at Work, your online portal.
Slide 17: My Canada Life at Work – Your online portal to your savings
Provides the website address: mycanadalifeatwork.com and tech support number: 1-888-222-0775.
Presenter:
Signing in to My Canada Life at Work is the first step to managing your savings throughout your savings journey.
If you haven’t signed in before, today is the day my friends, you’ll need to register using your policy and certificate number. You can find these numbers on the second page of your mailed statements under key information.
If you’ve previously received an email inviting you to register, it may also have this information.
For help signing in, we have technical support line at 1-888-222-0775 that is there to provide support and guidance, weekdays from 8 a.m. to 8 p.m. ET.
Slide 18: What can I do on My Canada Life at Work?
Lists features of the site:
View balances
Change investments
Update beneficiaries
Access statements and tax receipts
Set and track retirement goals
Presenter:
What can I do on My Canada Life at Work? It is more like what can’t you do.
Once you sign in you are able to:
Review and manage your savings plans any day at any time
Find your total balance and personal rate of return
Review or change your investment selection. Let’s pause here for a moment as we would like to talk about how your investment choices can make a big impact on how much you’re ultimately able to save before retirement
A best practice is to go online regularly to review your investment selections to make sure they’re still in line with your goals.
If you aren’t sure how to choose the best investments for you, join us for our upcoming webinars that teach the basics of investing later this year and the tools and support that are available/
Slide 19: Add or change a beneficiary (if applicable)
Step-by-step instructions for updating beneficiaries through the online portal and a screen shot of the website.
Presenter:
When you are signed in, you may want to make sure your beneficiary is up to date, if applicable.
This is an area many members have questions about.
Let’s review how to do it online - it can take less than 5 minutes.
Here’s how to do it online:
Select the person icon at the top right of your screen.
Select Your profile.
Then choose Beneficiaries and dependants and then view.
Select Edit beneficiaries for any group savings plan you would like to make changes to.
Slide 20: Our favourite feature – Retirement goal tool
Describes a tool that helps estimate how much you need to save for retirement, including government and personal savings.
Presenter:
One of the most useful features of My Canada Life at Work is the Retirement goal tool.
It’s an easy-to-use calculator that you’ll find on the Overview screen when you sign in.
It can help you figure out how much savings you need to achieve your desired retirement.
Slide 21: Retirement goal tool - results
Shows the outcome of using the retirement goal tool.
Visual description: Screenshot of summary showing projected savings needs and progress toward retirement goals.
Presenter:
Once completed, you will receive 1 of 2 empowering messages.
‘Congratulations! You are on track to achieving your retirement income goals’.
Or, it may tell you that you are not on track and provide you suggestions to get you on track or back on track.
Slide 22: Update your contribution amount
Gives instructions for increasing contributions based on your retirement goal tool results. You can do this in two ways:
You can do it online by navigating to the contributions part of My Canada Life at Work
Or by contacting your plan administrator directly
Presenter:
Your retirement goal tool results may lead you to wanting to make changes to the amount you’re contributing. This is something that you may be able to do online directly through Canada Life, or you may have to contact your payroll team to make these changes.
Slide 23: Don’t wait to sign-in
States that members who log in to the site have 30% higher average savings balances than those who haven’t. The statistic sourced from Canada Life data as of August 31, 2024.
Presenter:
We encourage members to not delay signing in to My Canada Life at Work.
Digitally engaged employees fare better in their retirement savings.
Members who have logged into My Canada Life at Work have average savings balances that are 30% higher than those who haven’t.
Slide 24: More perks of your plan
Title slide introducing additional benefits of being a plan member.
Presenter:
Now let us focus on the perks of your plan that can help you with your overall wellbeing.
Slide 25: Workplace Strategies for Mental Health
Describes free resources for mental well-being, including topics like conflict management, accommodations, and mental health tips. Includes a screenshot of the landing page and site url: workplacestrategiesformentalhealth.com.
Presenter:
Workplace Strategies for Mental Health is a leading online source of free, practical tools, resources and programs designed to help all Canadian employers and employees improve psychological health and safety in the workplace and beyond.
Here are examples of topics covered:
Managing workplace conflict and bullying
Approaches for workplace accommodations
Tips for improving and managing your mental health
Through workplace strategies for mental health:
You can increase your knowledge and awareness of workplace psychological health and safety
Help respond to mental health issues at work
If you’re a manager, it can be a great resource for strategies and tools to respond to employee issues at work.
Slide 26: Credit Counselling services
Lists two services:
Credit Counselling Society (nomoredebts.org, 1-877-636-8999)
Solve Your Debts (solveyourdebts.com, 1-888-753-2227)
Presenter:
To help improve your financial wellness, we have partnered with the award-wining, not for profit Credit Counselling Society and the Credit Counselling services Atlantic Canada. If you’re not sure how to manage your debt, credit counselling may be able to help.
Your group savings plan gives you access to certified credit counsellors who you can talk with you confidentially. They’ll ask members how they were referred, and members should mention they’re a Canada Life member.
Slide 27: Wills and estate planning
Outlines services available at discounted rates:
Online will creation
Estate planning guidance
Executor support
Presenter:
Estate planning doesn’t have to be costly or time consuming. Your plan includes discounted wills and estate planning services you can access online.
Create a legal will online
Discounted rate of $50+ HST for Canada Life plan members (regular price $249+ HST)
+ $19/year for access to a digital vault and unlimited edits to your will so you can make changes as your personal situation evolves
Includes power of attorney documents
Estate planning
Personalized guidance and support from estate experts
Preferred pricing with a 5% discount for services for Canada Life members
Executor support
Free online executor support for you or your appointed executor ($80 value)
Slide 28: Why does it matter?
States that half of Canadian adults do not have a will.
Explains that dying intestate means your estate is distributed by law, which may not reflect your wishes and could create tax burdens for your loved ones.
Presenter:
Why is estate planning important?
Half of Canadian adults say they don’t have a will and half of seniors aged 65+ have not updated their wills in the last 5 years.
If you die without a will in Canada or a designated beneficiary on your registered accounts (if applicable) , your money, assets and debts are put into an estate. A court-appointed representative closes your financial affairs and distributes your assets according to the rules and regulations of your province. Besides a loss of control over dispersal of assets, there are also potential tax burdens that can be passed on.
Slide 29: Accessing credit counselling and wills and estate planning services online
Instructions for accessing these services through My Canada Life at Work along with a screenshot:
Sign in
Select “Options for you”
Choose “Learn more” for the desired service
Presenter:
To benefit from discounted rates for credit counselling and wills and estate planning services, you’ll need to contact them through the links provided on My Canada Life at Work.
You’ll find the links under the “Options for you” tab when you sign in.
Slide 30: Saving for Life
Describes educational resources:
Monthly webinars. Register at canadalife.com/saving-for-life-webinars.
Biannual newsletters with plan updates
Self-serve tools on My Canada Life at work and canadalife.com/smartpath
Presenter:
Would you like to continue your retirement and savings education journey?
Consider registering for more of our webinars on a variety of different topics that members have been requesting.
Keep an eye on your email inbox for the semi-annual Savings for Live newsletter which will provide you insights about your plan and your savings goals.
If you’re not receiving it, registering on My Canada Life at Work can help ensure we have your email address on file.
Head over to canadalife.com/smartpath to access articles, videos and calculators
Slide 31: Best practices
Includes 5 colourful icons with one tip below each:
Reading your member booklet
Enrolling when eligible
Signing in regularly
Increasing contributions when possible
Using available tools and resources
Presenter:
Let’s finish by reviewing what you can do to make the most of your plan:
Make sure you understand what’s available to you by reading your member booklet.
Enrol in your plan as soon as you’re eligible to join – don’t wait to enjoy its benefits.
Sign into My Canada Life at Work and review your group savings plans regularly.
Increase your contribution amount when you can, if your plan allows you to and
Use the tools and resources available to you to support your overall well-being.
Slide 32: Want Help?
Contact information for Canada Life:
Help with your plan
1-800-724-3402 8 a.m. to 8 p.m. ET Monday-Friday
Help with My Canada Life at Work
Tech Line 1-888-222-0775
Bottom of the slide has the following disclaimer and trademark line: The information in this publication is general in nature and is intended for educational purposes only. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur. Past performance is not necessarily indicative of future performance.
Presenter:
Our goal was to share with you how your group savings plan can play big role in helping you achieve the financial goals you have set for yourself and your desired retirement lifestyle.
Be sure to watch our other webinars to keep learning about money and about your group savings plan.
Investing can be a complicated topic – but it doesn’t have to be. That’s why this webinar starts at the beginning and helps you build your knowledge from there.
Learn more about:
- Investments and investment accounts
- Asset classes and their differences
- Choosing investments that are right for you
- How your group savings plan can help you meet your financial goals
Introduction: This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Title Slide - Introduces the webinar titled "Investing – Basics for Beginners" and welcomes attendees. The slide has a background image of two individuals smiling.
Presenter: Hello and welcome everyone to today’s presentation on Investing basics. Everyone viewing this presentation has the
responsibility of choosing the investments within their group retirement savings plan. This presentation is designed to help you
with these decisions and improve your understanding to make you feel more confident about your choices.
Slide 2: Investment Knowledge and Confidence
Highlights that 2 out of 3 Canadians lack confidence in their investing knowledge. Notes that 47% of Canadians haven’t invested their savings. Emphasizes that feeling unsure about investing is common.
Presenter: First, by attending this webinar you are taking an important first step by empowering yourself with knowledge so congratulate yourself!
If you feel overwhelmed and not confident, you are not alone. 2 out of 3 Canadians feel the same way when it comes to investing.
This uncertainty results in a lot of Canadians not taking action on their savings. Ask yourself, is your money working for you by being invested and compounding OR is on the sidelines and potentially losing its future purchasing power?
Slide 3: Webinar Agenda
Outlines the topics to be covered:
Why invest
Key investing terms
Choosing investments in your group plan
Navigating market volatility
Avoiding common mistakes
Managing your portfolio online
The slide also has an image of a couple looking at some information on their laptop.
Presenter: Our agenda will cover basic fundamentals like why invest at all.
We’ll define some key investing vocabulary.
Then we’ll show you how to choose investments that are right for you and talk about common investing mistakes both new and seasoned investors make.
Finally, we’ll wrap things up reviewing how to manage your portfolio online.
Now if you find this information too basic or you are looking for more details on how to build and manage a investment portfolio in more depth, we encourage you to join the ‘Beyond the basics’ webinar, which is also available through our Saving for Life program.
Visit Canada Life’s Saving for Life webinar registration page to view and/or register for a webinar that interest you. register. We will provide you further details at the end of this presentation.
Slide 4: Why Invest?
Explains the benefits of investing:
Grow your savings
Protect against inflation
Benefit from compounding
Reach goals faster
The slide also has an image of a father teaching his son how to play football.
Presenter: Now, you might be wondering, what’s the problem with having my all money in cash in my retirement savings plan or safely under my mattress?
Investing your money is different than saving. Saving is simply setting money aside for the short or long term. Investing is taking those savings and using it to buy an investment with the intention of ending up with more money than you started with. And that’s the first reason to invest - for the opportunity to increase the value of your savings over time.
The next reason for investing your savings is to protect your buying power. If you’ve been to the grocery store lately, you’ll notice how much prices are going up. This general increase in prices is known as inflation. Now, think about how much prices could go up by the time you retire (and they’ll keep going up even after you retire). It's likely your money won’t buy you nearly as much then as it will today. Investing your money gives it the chance to grow as prices increase and help offset the impact of inflation on your ability to buy the things you need.
Finally, since investing your money gives you the opportunity to earn a return on your savings, it can make saving for goals easier.
You’ll have your investments doing part of the work for you, rather than you having to put all the money aside yourself.
Slide 5: Investing Terms Introduction
Introduces the next section, which defines key investing terms.
Presenter: Let’s take a look at some common investing words. No fancy talk—just the basics to help you feel more confident with your money.
Slide 6: Return and Risk
Defines:
· Return: The gain or loss on an investment.
· Risk: The chance that the return won’t meet expectations.
· Uses a savings account vs. lottery ticket example to illustrate risk-return tradeoff.
Presenter: We’ll start with return and risk.
Return is the money you make, or lose, on an investment. It’s the difference between what you initially invest and how much money you end up with. Risk is the chance you take that the return on an investment isn’t what you expect it to be. It includes the possibility of losing some or all your original investment. It’s important to understand the relationship between return and risk. Often, investments that have the highest potential for return are also the ones that have the biggest risk of you losing some or all your investment.
A big part of investing is balancing the risk of losing your investment with the desire to earn high returns on your money.
Here’s an example:
Let’s say you had $5 to invest. If you put that $5 in a savings account at your bank your risk of losing money would be very low, if not zero. However, your potential for earning a return is also low, you’d likely earn less than a penny over the course of a year.
Now, if you took that same $5 and bought a lottery ticket, you’d have the possibility
of earning a massive return, in the tens of millions of dollars. But your
risk of losing the entire $5 is even higher. It’s likely that you’ll end up
losing the $5 and not earn anything.
The bank
account has very low risk with very low return potential and the lottery
ticket is ridiculously high risk with the potential (while very remote) for
very high returns.
Slide 7: Asset Class
Defines asset
classes as categories of investments.
Lists the
three main types: Cash, Fixed Income, Equities.
Presenter:
What
is an asset class?
It’s
just a group of things you can invest your money in. Think of it like
different baskets for your money. Each backets holds different type of
Invesment, like cash, fixed income, and equities.
Let’s compare these three main asset classes.
Slide 8: Asset Class – Cash
Describes cash
investments as low-risk, low-return.
Examples:
savings accounts, money market funds.
Presenter:
First
there’s cash. This is a very low risk investment type. You usually invest
your money and earn a specific interest rate. Examples of cash investments
are savings accounts and money market investment funds.
Cash is
a good asset class to invest in when you might need your money soon and can’t
risk losing any of it. An example of this would be a savings account you use
for emergency savings.
Slide 9: Asset Class – Fixed Income
Explains fixed
income investments like bonds and mortgages.
Offers moderate
returns with low to medium risk.
Presenter:
Fixed
income investments are riskier than cash investment but are generally less
risky than equities. These investments include investing in bonds and
mortgages which provide regular income payments and set interest rates.
Fixed
income investments are often good for investors who don’t need their money
right away, want to earn a little more return but don’t want to risk losing
any of their money in the short term, even if it means missing out on returns
in the longer term.
Slide 10: Asset Class – Equities
Defines
equities (stocks) as ownership in companies.
Higher risk
and higher potential return.
Presenter:
Equities,
also known as stocks, are ownership shares of a publicly owned company.
Equities are generally higher-risk investments than other asset classes
because their value can change quickly due to market ups and downs or because
of the performance of the company you’ve invested in.
Of the
three asset classes we’re reviewing, equities have the most potential for
growth.
How
risky an equity depends on a lot of factors; some related to the overall
economy and other risks that are specific to the company or industry you’ve
invested in.
Slide 11: Diversification and Asset Mix
Diversification: Spreading investments across asset classes to reduce risk.
Asset mix: The proportion of each asset class in your portfolio.
Presenter:
The
good news is that you don’t need to choose between the different asset
classes. Diversification allows you to have it all.
Diversification
is a risk management strategy. Having a mix of asset classes in your
portfolio is one way you can diversify your investments. This helps to limit
your exposure to any one type of asset class or risk while still giving you
the opportunity for return.
Simply
put, diversification is intentionally having a variety of investments so if
one or more of them don’t perform as you hope it will, you’ll still have
other investments to rely on.
Your
asset mix is the mix of different asset classes in your investment portfolio.
The asset mix that’s right for you will depend on how much return you need to
make to reach your goals and the amount of risk you’re willing to take on to
achieve your desired return.
Slide 12: Investment Accounts
Clarifies that
investment accounts (e.g., RRSP, TFSA) are containers for investments,
not investments themselves.
Different
accounts have different tax rules and purposes.
Presenter:
The
last investing term we want to define for you is ‘investment account’. An
investment account is NOT an investment. It’s important not to get them
confused.
Similar to how a bank account holds money, an investment account or plan
holds your investments.
Different
investment accounts and plan types have different features and taxation
rules. Another way to think about them is by comparing it to buying
groceries. The investments are the groceries you buy, and the investment
account is the grocery bag you put them into.
The
investment account type you choose to hold your investments will depend on
your savings goals.
For
example, if you’re saving for your retirement, you’d may choose to put your
money into a registered retirement savings plan (RRSP). If you’re saving for
your child’s education, you may want to save in a registered education
savings plan (RESP). And if you’re saving for the shorter-term, then a
tax-free savings account (TFSA) could be right plan type for your savings.
Slide 13: Investment Funds
Explains how
investment funds pool money from many investors.
Managed by
professionals and can include various asset classes.
The slide also has an image of two women looking for information on a
tablet.
Presenter:
Investment
funds are an easy way for you to diversify your investments and buy
investments that have your desired asset mix. Your plan will have several
pre-selected funds for you to choose from.
Now
let’s pause and define what an investment fund is. It’s very important for
you to understand since it’s the main investment type available to you in
your group savings plan with Canada Life.
An investment fund is an investment that pools your money with the money of
other investors. The investment manager then invests this large amount of
money based on the fund’s objectives. They do this by buying securities.
Securities is a word for individual stocks or bonds that you can buy on the
stock market.
Investment
funds are sold in units. Because this is a pooled investment type, each unit
is made up of a whole bunch of securities. This means when you buy a single
investment fund unit, you’re actually investing in many underlying securities
at once. The units of an investment fund are usually valued daily when stock
markets close.
Every
investment fund has an investment objective. This tells the investment
manager what to buy with the fund’s money. Objectives can include things like
growth targets, asset classes, geographic regions even environmental
considerations.
Slide 14: IMFs and FOEs
Defines:
IMFs: Investment management fees.
FOEs: Fund operating expenses.
Notes that
fees reduce your investment returns.
Presenter:
Investment
managers charge a fee to manage an investment fund. They’re called IMFs which
stand for investment management fees. These fees are paid to investment
managers for their professional services. Fees also include services related
to customer service, website access, statements and call centre support. IMFs
are based on the asset value of each fund and are unique to your group plan.
IMFs don’t include applicable taxes (GST/HST) or fund operating expenses,
known as FOEs.
FOEs are
fees charged directly to the fund to cover costs including audit and
custodial fees, fund transaction costs, taxes paid by the fund, bank fees,
fund valuation and reporting. The total amount of FOE is calculated at the
end of each year. The amount reported to you will usually be the previous
year end charges calculated as a percentage of the fund.
Now
combine two terms and you have IMFOEs.
How do
IMFOEs impact you?
IMFOEs
are expressed as a percentage that’s deducted from the fund’s earnings and
ultimately lowers it returns.
That
means the smaller the fees, the less impact they have on your returns. The
higher the fees, the more your return is reduced by them.
Slide 15: Fee Comparison Example
Shows how
lower fees in group plans can lead to more savings over time compared to
individual plans.
Presenter:
Often,
the fees for the investments in your group plan are competitive when compared
to similar individual products. It’s because you’re benefiting from group
buying power – it’s the same principle as when you get discounts for buying
grocery items in bulk.
This
graphic shows how lower fees can lead to more savings over time.
In this
example, assume you have $25,000 in your group plan *Click*) and $25,000 into your
individual plan *CLICK*. If your group plan offered a 1% lower annualized
IMFOE when compared to your individual plan, it can have a big impact on your
retirement savings.
If we
take a take a look over 25 years, your money grows in both plans, *CLICK*
*CLICK* however in your group plan, less of your money has gone out to pay
fees and therefore stays in your plan to keep growing.
If you
have questions about IMFOEs on your plan, please log in to your member
account at mycanadalifeatwork.com or give our call center a call.
Slide 16: Investment Selection for Beginners
Introduces the
next section: how to choose investments in your group plan.
Presenter:
Earlier
we had mentioned that investment funds are he main investment type available
to you through your group plan. But how do you choose the one that’s right
for you? The next part of this webinar focuses on just that.
Slide 17: Portfolio Strategy Approaches
Describes
three approaches:
No touch: Target date funds
Low touch: Target risk funds
High touch: Build your own portfolio
Presenter:
When
you’re ready to start choosing investments, there are three possible
investment approaches you can take. You’ll of course need to confirm what’s
available in your specific group plan.
The
first approach is a no touch approach. This is called “no touch” because you
choose your investment fund once and don’t revisit your investment selection
often. If you have target date funds available to you in your plan, they’re a
good option for this approach since they require very little effort from
you.
A low
touch approach means you don’t mind updating your investment choices as time
goes on or your goals or personal circumstances change. You can invest in
target risk funds using this approach.
A high
touch approach is for people who have a good understanding of investments and
want to create their own portfolio. It requires regularly reviewing the
performance of your investments and rebalancing them when your goals
change.
Both no
touch and low touch approaches are great for beginners, so let’s review them
more closely.
Slide 18: Target Date Funds
Explains
target date funds are based on your retirement year.
Designed for a
“set it and forget it” approach.
The slide also has an image of an old couple.
Presenter:
If
you’re interested in using a no touch approach to investing, then consider
putting your savings into a target date fund. With these funds, the
investment manager chooses securities and changes the asset mix based on your
planned retirement year.
Slide 19: The Average Investor
Discusses how
risk tolerance changes with age.
Younger
investors can take more risk; older investors need more stability.
Presenter:
Target
date funds are based on one key assumption; the closer we get to retirement,
the less risk we’re willing to take on.
There’s
reasons behind this. A younger person has lots of time before they retire.
This means they can wait out market fluctuations before they need their
money. If the value of their savings temporarily goes down, a younger person
can wait for it to go back up before making withdrawals.
In
contrast, someone who is really close to retirement will need to start
withdrawing their money much sooner. They don’t have the same amount of time
to wait out market ups and downs. This makes them less willing to take on
investment risk.
Slide 20: How a Target Date Fund Works
Describes how
the fund’s asset mix shifts from equities to fixed income as retirement
approaches.
Presenter:
Based
on this assumption, target date funds start with a high percentage of
equities in their asset mix and as time goes on, shift to an asset mix that
has more fixed income securities. This gradual change from an equity-focused
asset mix to fixed income-focused asset mix lowers the overall risk of the
fund over time.
This
means you when you’re younger you’ll benefit from the possibility of higher
returns and when you’re older and closer to retirement, your money will have
better protection from changes in value.
Slide 21: Choosing a Target Date Fund
Provides a
table to help choose a fund based on your expected retirement year.
Presenter:
One
of the best things about target date funds is how easy it is to choose the
one that’s right for you. You simply pick the fund that’s closest to the year
you want to retire. For example, if you plan to retire in 2048, you should
choose the 2050 Fund.
Your
target date fund is made up of different types of investments, so you only
need to choose one.
Slide 22: Target Risk Funds
Tailored to
your risk tolerance rather than retirement date.
Suitable for a
low-touch approach.
The slide also has an image of an old couple fishing.
Presenter:
Target
risk funds can be another great option for beginner investors or investors
who want to follow a low touch approach. The way target date funds are
tailored to a specific date, target risk funds are tailored to a specific
risk profile.
These
funds have a low-touch approach because you’ll want to update your investment
selection when your goals or risk tolerance changes.
Slide 23: Five Levels of Risk
Lists five
types of target risk funds: Conservative to Aggressive.
Each has a
different mix of equities and fixed income.
Presenter:
There
are five levels of target risk funds: conservative, moderate, balanced,
advanced and aggressive.
Each
fund contains a diversified mix of fixed income investments and equities,
including specialty funds like real estate, to help achieve the optimal
return for each level of risk and then regularly adjusts to stay that way.
If you
look at the small investment mix pie charts on the graph, you can see how the
investment mix for each fund is different.
The
conservative portfolio has the least amount of risk but also has the least
potential for returns. At the other end of the range, we have the aggressive
portfolio, which has the most equity holdings and potential for returns but
also is the riskiest in the short-term.
Slide 24: Your Investment Personality
Encourages
completing a questionnaire to determine your risk profile and choose the
right fund.
Presenter:
To
find out which target risk fund is right for you, complete Canada Life’s
Investment Personality Questionnaire. The questionnaire asks you 14 questions
to assess your risk tolerance, time horizon and goals. Once you finish it,
you’ll know your score and you can use this result to choose the
corresponding investment fund.
You can
visit canadalife.com/ipq to try it for yourself.
Slide 25: Investing Through Volatility
Introduces the
next section: how to avoid common investing mistakes, especially during
market ups and downs.
Presenter:
Whether
you’re an experienced investor or just starting out, there are some investing
mistakes that we’re all susceptible to. Fortunately, as easy as they are to
make, they’re also just as easy to avoid.
Slide 26: Emotional Investing
Warns against making decisions based on emotions. Investors often buy high and sell low due to fear or excitement.
Presenter: While history tells us market declines are temporary, it can still be difficult not to panic.
The wise investment advice is to buy low and sell high. Yet, studies show the average investor gets excited, jumps on the bandwagon and buys a stock when it’s performing well (in other words, they buy high). Then, when the price drops, that same investor often panics and
unloads the stock (they sell low).
Slide 27: Lessons from History
Shows examples of past market crashes and recoveries. Emphasizes that markets tend to bounce back over time.
Presenter: There have been many times in our history when markets experienced big declines. Although the causes of the declines were different – from political events to a pandemic – markets have always recovered.
Here are just a few examples you may recognize…
Slide 28: Don’t miss the best days
Demonstrates how pulling out of the market can cause you to miss the best-performing days, reducing returns.
Presenter: The next investing mistake we want to talk to you about is trying to time the market. It’s when investors try to anticipate when prices will go up or down so they can buy or sell at the most advantageous time. The problem with this strategy is that investors often get it wrong (predicting the future is difficult, if not impossible).
Using data from the S&P/TSX Composite Total Return index from 2005 to 2024, this graph shows how those who stayed invested came out further ahead of those who missed key weeks when there were market upswings.
Slide 29: Dollar-Cost Averaging
Recommends investing small amounts regularly to reduce timing risk and emotional decisions.
Presenter: Dollar cost averaging is an easy way to avoid both timing the market and making emotional investing decisions.
Dollar-cost averaging is when you invest a little money regularly, rather than a larger amount once in a while. With dollar cost averaging you invest a set amount at regular intervals, regardless of what’s going on in the economy.
By doing this you avoid the risk of only investing your money when the price is high and increase your chance of investing some of it when costs are low. It essentially averages out the cost of your investment. The graph shows an example of a unit price that fluctuates between $14 and $20. By investing $100 each month, the investor was able to buy their investment fund units at an average price of
$17.25.
The easiest way to begin investing with a dollar-cost averaging strategy is to have contribution amounts taken directly from your pay cheque.
There are two potential ways members can set this up:
Online: Visit the Contributions section on My Canada Life at Work, once you have signed in using your personal credentials.
Through your plan administrator: Speak with them to learn about the available options in your group plan.
Slide 30: Diversification
Shows how no single asset class consistently outperforms. Emphasizes the importance of a diversified portfolio.
Presenter: The final investing mistake we’re going to cover is trying to pick a “winner” rather than focusing on having a well-diversified
portfolio.
This chart shows the performance of various asset categories between 2005 and 2024. Take a look at the best and worst performers for each year. Notice anything? Probably that there isn’t one investment category on here that is consistently the best or worst.
For example, the bright red rectangles represent Canadian Equities. This asset class was the best performer in 4 of the years represented in this graphic, but was the worst performer in three of the years.
Or take a look at the dark taupe rectangles which is U.S. Equities. It was the worst performer in 3 of the years and also the best performer for 7 other years.
The teal rectangles represent the performance of a balanced asset class. Balanced funds invest multiple asset classes.
It’s never the best or worst performer but instead provides more consistent returns.
Keep in mind our target date and target risk investment funds that we reviewed today are designed to provide you with diversification, making a lack of diversification an easy risk for you to avoid.
Slide 31: Managing Investments Online
Introduces tools available through My Canada Life at Work™ to manage your investments.
Presenter: Canada Life offers tools, resources and services to help you better manage your group plan and make informed decisions about your financial well-being.
Slide 32: My Canada Life at Work
Provides login instructions and support contact info for the online portal.
Presenter: Our plan member website, My Canada Life at Work, is your “go to” resource for information about your group plan.
Use your personal credentials and click on “Sign in” to log on. If you need help signing into your online account, please contact Technical Support at 1 888 222-0775.
Slide 33: What You Can Do on My Canada Life at Work
Lists features of the portal: view balance, change investments, update beneficiaries, set goals, etc.
Presenter: What can I do on My Canada Life at Work?
• Review and manage your savings plans
• Find your total balance
• Review or change your investment selection – not all plans can be updated online
• Your investment choices can make a big impact on how much you’re ultimately able to save before retirement
• Go online regularly to review your investment selections to make sure they’re still in line with your goals.
• If you aren’t sure how to choose the best investments for you, join us for our upcoming webinars that teach the basics of investing later this year.
• It’s also important to get professional advice, give our contact centre a call to find out advice is included with your plan.
• Update your beneficiaries (if applicable)
• Retrieve your statements, forms and tax receipts
• Set and track a retirement goal
And more!
Slide 34: Additional Resources
Promotes webinars, self-serve tools, and newsletters to continue learning about investing.
The slide also has an image of a woman smiling and looking at her laptop.
Presenter: Would you like to continue your retirement and savings education journey? Register for more webinars on a variety of
different topics.
Keep an eye on your email inbox for the semi-annual Savings for Live newsletter which will provide you insights about your plan and your savings goals.
If you’re not receiving it, registering on My Canada Life at Work can help ensure we have your email address on file.
Head over to canadalife.com/smartpath to access articles, videos and calculators created for you the member.
Slide 35: Want Help?
Provides contact information for help with your plan or technical support.
Presenter: Your group plan plays a big role in helping you achieve the financial goals you have set for yourself and your retirement
lifestyle. If you need further assistance, please reach out to us at Canada Life for help with your plan.
Thank you very much for joining session and best wishes with your wealth building journey!
Introduction: This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Title Slide - Introduces the webinar titled "Investing – Basics for Beginners" and welcomes attendees. The slide has a background image of two individuals smiling.
Presenter: Hello and welcome everyone to today’s presentation on Investing basics. Everyone viewing this presentation has the
responsibility of choosing the investments within their group retirement savings plan. This presentation is designed to help you
with these decisions and improve your understanding to make you feel more confident about your choices.
Slide 2: Investment Knowledge and Confidence
Highlights that 2 out of 3 Canadians lack confidence in their investing knowledge. Notes that 47% of Canadians haven’t invested their savings. Emphasizes that feeling unsure about investing is common.
Presenter: First, by attending this webinar you are taking an important first step by empowering yourself with knowledge so congratulate yourself!
If you feel overwhelmed and not confident, you are not alone. 2 out of 3 Canadians feel the same way when it comes to investing.
This uncertainty results in a lot of Canadians not taking action on their savings. Ask yourself, is your money working for you by being invested and compounding OR is on the sidelines and potentially losing its future purchasing power?
Slide 3: Webinar Agenda
Outlines the topics to be covered:
Why invest
Key investing terms
Choosing investments in your group plan
Navigating market volatility
Avoiding common mistakes
Managing your portfolio online
The slide also has an image of a couple looking at some information on their laptop.
Presenter: Our agenda will cover basic fundamentals like why invest at all.
We’ll define some key investing vocabulary.
Then we’ll show you how to choose investments that are right for you and talk about common investing mistakes both new and seasoned investors make.
Finally, we’ll wrap things up reviewing how to manage your portfolio online.
Now if you find this information too basic or you are looking for more details on how to build and manage a investment portfolio in more depth, we encourage you to join the ‘Beyond the basics’ webinar, which is also available through our Saving for Life program.
Visit Canada Life’s Saving for Life webinar registration page to view and/or register for a webinar that interest you. register. We will provide you further details at the end of this presentation.
Slide 4: Why Invest?
Explains the benefits of investing:
Grow your savings
Protect against inflation
Benefit from compounding
Reach goals faster
The slide also has an image of a father teaching his son how to play football.
Presenter: Now, you might be wondering, what’s the problem with having my all money in cash in my retirement savings plan or safely under my mattress?
Investing your money is different than saving. Saving is simply setting money aside for the short or long term. Investing is taking those savings and using it to buy an investment with the intention of ending up with more money than you started with. And that’s the first reason to invest - for the opportunity to increase the value of your savings over time.
The next reason for investing your savings is to protect your buying power. If you’ve been to the grocery store lately, you’ll notice how much prices are going up. This general increase in prices is known as inflation. Now, think about how much prices could go up by the time you retire (and they’ll keep going up even after you retire). It's likely your money won’t buy you nearly as much then as it will today. Investing your money gives it the chance to grow as prices increase and help offset the impact of inflation on your ability to buy the things you need.
Finally, since investing your money gives you the opportunity to earn a return on your savings, it can make saving for goals easier.
You’ll have your investments doing part of the work for you, rather than you having to put all the money aside yourself.
Slide 5: Investing Terms Introduction
Introduces the next section, which defines key investing terms.
Presenter: Let’s take a look at some common investing words. No fancy talk—just the basics to help you feel more confident with your money.
Slide 6: Return and Risk
Defines:
· Return: The gain or loss on an investment.
· Risk: The chance that the return won’t meet expectations.
· Uses a savings account vs. lottery ticket example to illustrate risk-return tradeoff.
Presenter: We’ll start with return and risk.
Return is the money you make, or lose, on an investment. It’s the difference between what you initially invest and how much money you end up with. Risk is the chance you take that the return on an investment isn’t what you expect it to be. It includes the possibility of losing some or all your original investment. It’s important to understand the relationship between return and risk. Often, investments that have the highest potential for return are also the ones that have the biggest risk of you losing some or all your investment.
A big part of investing is balancing the risk of losing your investment with the desire to earn high returns on your money.
Here’s an example:
Let’s say you had $5 to invest. If you put that $5 in a savings account at your bank your risk of losing money would be very low, if not zero. However, your potential for earning a return is also low, you’d likely earn less than a penny over the course of a year.
Now, if you took that same $5 and bought a lottery ticket, you’d have the possibility
of earning a massive return, in the tens of millions of dollars. But your
risk of losing the entire $5 is even higher. It’s likely that you’ll end up
losing the $5 and not earn anything.
The bank
account has very low risk with very low return potential and the lottery
ticket is ridiculously high risk with the potential (while very remote) for
very high returns.
Slide 7: Asset Class
Defines asset
classes as categories of investments.
Lists the
three main types: Cash, Fixed Income, Equities.
Presenter:
What
is an asset class?
It’s
just a group of things you can invest your money in. Think of it like
different baskets for your money. Each backets holds different type of
Invesment, like cash, fixed income, and equities.
Let’s compare these three main asset classes.
Slide 8: Asset Class – Cash
Describes cash
investments as low-risk, low-return.
Examples:
savings accounts, money market funds.
Presenter:
First
there’s cash. This is a very low risk investment type. You usually invest
your money and earn a specific interest rate. Examples of cash investments
are savings accounts and money market investment funds.
Cash is
a good asset class to invest in when you might need your money soon and can’t
risk losing any of it. An example of this would be a savings account you use
for emergency savings.
Slide 9: Asset Class – Fixed Income
Explains fixed
income investments like bonds and mortgages.
Offers moderate
returns with low to medium risk.
Presenter:
Fixed
income investments are riskier than cash investment but are generally less
risky than equities. These investments include investing in bonds and
mortgages which provide regular income payments and set interest rates.
Fixed
income investments are often good for investors who don’t need their money
right away, want to earn a little more return but don’t want to risk losing
any of their money in the short term, even if it means missing out on returns
in the longer term.
Slide 10: Asset Class – Equities
Defines
equities (stocks) as ownership in companies.
Higher risk
and higher potential return.
Presenter:
Equities,
also known as stocks, are ownership shares of a publicly owned company.
Equities are generally higher-risk investments than other asset classes
because their value can change quickly due to market ups and downs or because
of the performance of the company you’ve invested in.
Of the
three asset classes we’re reviewing, equities have the most potential for
growth.
How
risky an equity depends on a lot of factors; some related to the overall
economy and other risks that are specific to the company or industry you’ve
invested in.
Slide 11: Diversification and Asset Mix
Diversification: Spreading investments across asset classes to reduce risk.
Asset mix: The proportion of each asset class in your portfolio.
Presenter:
The
good news is that you don’t need to choose between the different asset
classes. Diversification allows you to have it all.
Diversification
is a risk management strategy. Having a mix of asset classes in your
portfolio is one way you can diversify your investments. This helps to limit
your exposure to any one type of asset class or risk while still giving you
the opportunity for return.
Simply
put, diversification is intentionally having a variety of investments so if
one or more of them don’t perform as you hope it will, you’ll still have
other investments to rely on.
Your
asset mix is the mix of different asset classes in your investment portfolio.
The asset mix that’s right for you will depend on how much return you need to
make to reach your goals and the amount of risk you’re willing to take on to
achieve your desired return.
Slide 12: Investment Accounts
Clarifies that
investment accounts (e.g., RRSP, TFSA) are containers for investments,
not investments themselves.
Different
accounts have different tax rules and purposes.
Presenter:
The
last investing term we want to define for you is ‘investment account’. An
investment account is NOT an investment. It’s important not to get them
confused.
Similar to how a bank account holds money, an investment account or plan
holds your investments.
Different
investment accounts and plan types have different features and taxation
rules. Another way to think about them is by comparing it to buying
groceries. The investments are the groceries you buy, and the investment
account is the grocery bag you put them into.
The
investment account type you choose to hold your investments will depend on
your savings goals.
For
example, if you’re saving for your retirement, you’d may choose to put your
money into a registered retirement savings plan (RRSP). If you’re saving for
your child’s education, you may want to save in a registered education
savings plan (RESP). And if you’re saving for the shorter-term, then a
tax-free savings account (TFSA) could be right plan type for your savings.
Slide 13: Investment Funds
Explains how
investment funds pool money from many investors.
Managed by
professionals and can include various asset classes.
The slide also has an image of two women looking for information on a
tablet.
Presenter:
Investment
funds are an easy way for you to diversify your investments and buy
investments that have your desired asset mix. Your plan will have several
pre-selected funds for you to choose from.
Now
let’s pause and define what an investment fund is. It’s very important for
you to understand since it’s the main investment type available to you in
your group savings plan with Canada Life.
An investment fund is an investment that pools your money with the money of
other investors. The investment manager then invests this large amount of
money based on the fund’s objectives. They do this by buying securities.
Securities is a word for individual stocks or bonds that you can buy on the
stock market.
Investment
funds are sold in units. Because this is a pooled investment type, each unit
is made up of a whole bunch of securities. This means when you buy a single
investment fund unit, you’re actually investing in many underlying securities
at once. The units of an investment fund are usually valued daily when stock
markets close.
Every
investment fund has an investment objective. This tells the investment
manager what to buy with the fund’s money. Objectives can include things like
growth targets, asset classes, geographic regions even environmental
considerations.
Slide 14: IMFs and FOEs
Defines:
IMFs: Investment management fees.
FOEs: Fund operating expenses.
Notes that
fees reduce your investment returns.
Presenter:
Investment
managers charge a fee to manage an investment fund. They’re called IMFs which
stand for investment management fees. These fees are paid to investment
managers for their professional services. Fees also include services related
to customer service, website access, statements and call centre support. IMFs
are based on the asset value of each fund and are unique to your group plan.
IMFs don’t include applicable taxes (GST/HST) or fund operating expenses,
known as FOEs.
FOEs are
fees charged directly to the fund to cover costs including audit and
custodial fees, fund transaction costs, taxes paid by the fund, bank fees,
fund valuation and reporting. The total amount of FOE is calculated at the
end of each year. The amount reported to you will usually be the previous
year end charges calculated as a percentage of the fund.
Now
combine two terms and you have IMFOEs.
How do
IMFOEs impact you?
IMFOEs
are expressed as a percentage that’s deducted from the fund’s earnings and
ultimately lowers it returns.
That
means the smaller the fees, the less impact they have on your returns. The
higher the fees, the more your return is reduced by them.
Slide 15: Fee Comparison Example
Shows how
lower fees in group plans can lead to more savings over time compared to
individual plans.
Presenter:
Often,
the fees for the investments in your group plan are competitive when compared
to similar individual products. It’s because you’re benefiting from group
buying power – it’s the same principle as when you get discounts for buying
grocery items in bulk.
This
graphic shows how lower fees can lead to more savings over time.
In this
example, assume you have $25,000 in your group plan *Click*) and $25,000 into your
individual plan *CLICK*. If your group plan offered a 1% lower annualized
IMFOE when compared to your individual plan, it can have a big impact on your
retirement savings.
If we
take a take a look over 25 years, your money grows in both plans, *CLICK*
*CLICK* however in your group plan, less of your money has gone out to pay
fees and therefore stays in your plan to keep growing.
If you
have questions about IMFOEs on your plan, please log in to your member
account at mycanadalifeatwork.com or give our call center a call.
Slide 16: Investment Selection for Beginners
Introduces the
next section: how to choose investments in your group plan.
Presenter:
Earlier
we had mentioned that investment funds are he main investment type available
to you through your group plan. But how do you choose the one that’s right
for you? The next part of this webinar focuses on just that.
Slide 17: Portfolio Strategy Approaches
Describes
three approaches:
No touch: Target date funds
Low touch: Target risk funds
High touch: Build your own portfolio
Presenter:
When
you’re ready to start choosing investments, there are three possible
investment approaches you can take. You’ll of course need to confirm what’s
available in your specific group plan.
The
first approach is a no touch approach. This is called “no touch” because you
choose your investment fund once and don’t revisit your investment selection
often. If you have target date funds available to you in your plan, they’re a
good option for this approach since they require very little effort from
you.
A low
touch approach means you don’t mind updating your investment choices as time
goes on or your goals or personal circumstances change. You can invest in
target risk funds using this approach.
A high
touch approach is for people who have a good understanding of investments and
want to create their own portfolio. It requires regularly reviewing the
performance of your investments and rebalancing them when your goals
change.
Both no
touch and low touch approaches are great for beginners, so let’s review them
more closely.
Slide 18: Target Date Funds
Explains
target date funds are based on your retirement year.
Designed for a
“set it and forget it” approach.
The slide also has an image of an old couple.
Presenter:
If
you’re interested in using a no touch approach to investing, then consider
putting your savings into a target date fund. With these funds, the
investment manager chooses securities and changes the asset mix based on your
planned retirement year.
Slide 19: The Average Investor
Discusses how
risk tolerance changes with age.
Younger
investors can take more risk; older investors need more stability.
Presenter:
Target
date funds are based on one key assumption; the closer we get to retirement,
the less risk we’re willing to take on.
There’s
reasons behind this. A younger person has lots of time before they retire.
This means they can wait out market fluctuations before they need their
money. If the value of their savings temporarily goes down, a younger person
can wait for it to go back up before making withdrawals.
In
contrast, someone who is really close to retirement will need to start
withdrawing their money much sooner. They don’t have the same amount of time
to wait out market ups and downs. This makes them less willing to take on
investment risk.
Slide 20: How a Target Date Fund Works
Describes how
the fund’s asset mix shifts from equities to fixed income as retirement
approaches.
Presenter:
Based
on this assumption, target date funds start with a high percentage of
equities in their asset mix and as time goes on, shift to an asset mix that
has more fixed income securities. This gradual change from an equity-focused
asset mix to fixed income-focused asset mix lowers the overall risk of the
fund over time.
This
means you when you’re younger you’ll benefit from the possibility of higher
returns and when you’re older and closer to retirement, your money will have
better protection from changes in value.
Slide 21: Choosing a Target Date Fund
Provides a
table to help choose a fund based on your expected retirement year.
Presenter:
One
of the best things about target date funds is how easy it is to choose the
one that’s right for you. You simply pick the fund that’s closest to the year
you want to retire. For example, if you plan to retire in 2048, you should
choose the 2050 Fund.
Your
target date fund is made up of different types of investments, so you only
need to choose one.
Slide 22: Target Risk Funds
Tailored to
your risk tolerance rather than retirement date.
Suitable for a
low-touch approach.
The slide also has an image of an old couple fishing.
Presenter:
Target
risk funds can be another great option for beginner investors or investors
who want to follow a low touch approach. The way target date funds are
tailored to a specific date, target risk funds are tailored to a specific
risk profile.
These
funds have a low-touch approach because you’ll want to update your investment
selection when your goals or risk tolerance changes.
Slide 23: Five Levels of Risk
Lists five
types of target risk funds: Conservative to Aggressive.
Each has a
different mix of equities and fixed income.
Presenter:
There
are five levels of target risk funds: conservative, moderate, balanced,
advanced and aggressive.
Each
fund contains a diversified mix of fixed income investments and equities,
including specialty funds like real estate, to help achieve the optimal
return for each level of risk and then regularly adjusts to stay that way.
If you
look at the small investment mix pie charts on the graph, you can see how the
investment mix for each fund is different.
The
conservative portfolio has the least amount of risk but also has the least
potential for returns. At the other end of the range, we have the aggressive
portfolio, which has the most equity holdings and potential for returns but
also is the riskiest in the short-term.
Slide 24: Your Investment Personality
Encourages
completing a questionnaire to determine your risk profile and choose the
right fund.
Presenter:
To
find out which target risk fund is right for you, complete Canada Life’s
Investment Personality Questionnaire. The questionnaire asks you 14 questions
to assess your risk tolerance, time horizon and goals. Once you finish it,
you’ll know your score and you can use this result to choose the
corresponding investment fund.
You can
visit canadalife.com/ipq to try it for yourself.
Slide 25: Investing Through Volatility
Introduces the
next section: how to avoid common investing mistakes, especially during
market ups and downs.
Presenter:
Whether
you’re an experienced investor or just starting out, there are some investing
mistakes that we’re all susceptible to. Fortunately, as easy as they are to
make, they’re also just as easy to avoid.
Slide 26: Emotional Investing
Warns against making decisions based on emotions. Investors often buy high and sell low due to fear or excitement.
Presenter: While history tells us market declines are temporary, it can still be difficult not to panic.
The wise investment advice is to buy low and sell high. Yet, studies show the average investor gets excited, jumps on the bandwagon and buys a stock when it’s performing well (in other words, they buy high). Then, when the price drops, that same investor often panics and
unloads the stock (they sell low).
Slide 27: Lessons from History
Shows examples of past market crashes and recoveries. Emphasizes that markets tend to bounce back over time.
Presenter: There have been many times in our history when markets experienced big declines. Although the causes of the declines were different – from political events to a pandemic – markets have always recovered.
Here are just a few examples you may recognize…
Slide 28: Don’t miss the best days
Demonstrates how pulling out of the market can cause you to miss the best-performing days, reducing returns.
Presenter: The next investing mistake we want to talk to you about is trying to time the market. It’s when investors try to anticipate when prices will go up or down so they can buy or sell at the most advantageous time. The problem with this strategy is that investors often get it wrong (predicting the future is difficult, if not impossible).
Using data from the S&P/TSX Composite Total Return index from 2005 to 2024, this graph shows how those who stayed invested came out further ahead of those who missed key weeks when there were market upswings.
Slide 29: Dollar-Cost Averaging
Recommends investing small amounts regularly to reduce timing risk and emotional decisions.
Presenter: Dollar cost averaging is an easy way to avoid both timing the market and making emotional investing decisions.
Dollar-cost averaging is when you invest a little money regularly, rather than a larger amount once in a while. With dollar cost averaging you invest a set amount at regular intervals, regardless of what’s going on in the economy.
By doing this you avoid the risk of only investing your money when the price is high and increase your chance of investing some of it when costs are low. It essentially averages out the cost of your investment. The graph shows an example of a unit price that fluctuates between $14 and $20. By investing $100 each month, the investor was able to buy their investment fund units at an average price of
$17.25.
The easiest way to begin investing with a dollar-cost averaging strategy is to have contribution amounts taken directly from your pay cheque.
There are two potential ways members can set this up:
Online: Visit the Contributions section on My Canada Life at Work, once you have signed in using your personal credentials.
Through your plan administrator: Speak with them to learn about the available options in your group plan.
Slide 30: Diversification
Shows how no single asset class consistently outperforms. Emphasizes the importance of a diversified portfolio.
Presenter: The final investing mistake we’re going to cover is trying to pick a “winner” rather than focusing on having a well-diversified
portfolio.
This chart shows the performance of various asset categories between 2005 and 2024. Take a look at the best and worst performers for each year. Notice anything? Probably that there isn’t one investment category on here that is consistently the best or worst.
For example, the bright red rectangles represent Canadian Equities. This asset class was the best performer in 4 of the years represented in this graphic, but was the worst performer in three of the years.
Or take a look at the dark taupe rectangles which is U.S. Equities. It was the worst performer in 3 of the years and also the best performer for 7 other years.
The teal rectangles represent the performance of a balanced asset class. Balanced funds invest multiple asset classes.
It’s never the best or worst performer but instead provides more consistent returns.
Keep in mind our target date and target risk investment funds that we reviewed today are designed to provide you with diversification, making a lack of diversification an easy risk for you to avoid.
Slide 31: Managing Investments Online
Introduces tools available through My Canada Life at Work™ to manage your investments.
Presenter: Canada Life offers tools, resources and services to help you better manage your group plan and make informed decisions about your financial well-being.
Slide 32: My Canada Life at Work
Provides login instructions and support contact info for the online portal.
Presenter: Our plan member website, My Canada Life at Work, is your “go to” resource for information about your group plan.
Use your personal credentials and click on “Sign in” to log on. If you need help signing into your online account, please contact Technical Support at 1 888 222-0775.
Slide 33: What You Can Do on My Canada Life at Work
Lists features of the portal: view balance, change investments, update beneficiaries, set goals, etc.
Presenter: What can I do on My Canada Life at Work?
• Review and manage your savings plans
• Find your total balance
• Review or change your investment selection – not all plans can be updated online
• Your investment choices can make a big impact on how much you’re ultimately able to save before retirement
• Go online regularly to review your investment selections to make sure they’re still in line with your goals.
• If you aren’t sure how to choose the best investments for you, join us for our upcoming webinars that teach the basics of investing later this year.
• It’s also important to get professional advice, give our contact centre a call to find out advice is included with your plan.
• Update your beneficiaries (if applicable)
• Retrieve your statements, forms and tax receipts
• Set and track a retirement goal
And more!
Slide 34: Additional Resources
Promotes webinars, self-serve tools, and newsletters to continue learning about investing.
The slide also has an image of a woman smiling and looking at her laptop.
Presenter: Would you like to continue your retirement and savings education journey? Register for more webinars on a variety of
different topics.
Keep an eye on your email inbox for the semi-annual Savings for Live newsletter which will provide you insights about your plan and your savings goals.
If you’re not receiving it, registering on My Canada Life at Work can help ensure we have your email address on file.
Head over to canadalife.com/smartpath to access articles, videos and calculators created for you the member.
Slide 35: Want Help?
Provides contact information for help with your plan or technical support.
Presenter: Your group plan plays a big role in helping you achieve the financial goals you have set for yourself and your retirement
lifestyle. If you need further assistance, please reach out to us at Canada Life for help with your plan.
Thank you very much for joining session and best wishes with your wealth building journey!
This webinar builds on investing basics and will help you explore more of the investment options available to you in your group retirement and savings plan.
Learn more about:
- Investing risks
- Specialty funds
- Building your own portfolio in your group plan
Introduction: This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Investing – Beyond the Basics Title slide introducing the presentation topic. The slide also has an image on a man walking his pet dog. Presenter: Hi Everyone and welcome to the webinar!
Slide 2: Benjamin Graham Quote A quote from Benjamin Graham emphasizing that investment management is about managing risks, not returns. Presenter: Slide 3: Webinar Agenda Lists the topics covered in the webinar: high-touch investing, investment personality, managing risk, fund objectives, and accessing fund reports. The slide also has an image of a disabled woman speaking on the phone. Presenter: Today’s session is called beyond the basics, but we’re still going to focus only on investments that are available to you through your group plan. That means we won’t talk about things like cryptocurrencies and stock options. Here’s what we will cover… - Define what a high touch investing approach is - Review how to use the investment personality questionnaire to guide your investment decisions. - Discuss things to consider when building an investment portfolio including: - Investment risks - Fund objectives and - Fund management styles -We’ll finish with where you can find detailed investment fund reports and what information you can find on them. Slide 4: Want to Build Your Own Portfolio? Introduces the concept of building a personalized investment portfolio. Presenter: In our last investing webinar, Basics for beginners, we focused on ready-made investment solutions. These solutions use no touch and low touch approaches which require the least amount of effort from the investor. That’s because to use these approaches all you need to do is choose one fund that matches either your retirement date, your risk tolerance, or both. If you want to build your own investment portfolio by selecting a few investments to meet your goals, then that means you want to use a high touch approach. It’s called high touch, because it’s more hands on than the other two approaches. With this strategy you’ll need to regularly review your investments and make changes when your goals change. You'll also need to rebalance your investments as their values grow and consider reducing your portfolio's risk as you approach retirement. Discuss that most group plans have the options to build an investment portfolio using individual segregated funds that invest in a specific asset class or industry This approach of building your own portfolio takes knowledge, effort and an understanding of how to assess different investments and how they differentiate from other funds. Slide 5: Your Investment Personality Encourages users to take the investment personality questionnaire at canadalife.com/ipq.
Presenter: A good place to start for any investment approach is by completing the Investment Personality Questionnaire. The questionnaire asks you 14 questions to assess your risk tolerance, time horizon and goals. Once you finish it, you’ll know your score and the asset mix that’s right for you. Slide 6: Choose Investments Based on Personality Advises aligning investment choices with personal investment personality. Presenter: With the high touch approach, use your questionnaire results as a guide to inform your investment selection. Ideally, the combined percentages of your investment holdings will match your investment personality results. Your suggested asset mix will be a combination of percentages of different asset classes. You may select one or more investment funds for each asset class according to the suggested percentage. Most people think this is the final step. As a matter of fact, this is simply the beginning. Your investment objectives, risk tolerance and time horizon will change over time. You’ll want to review, monitor and adjust your investment portfolio from time to time to match the changes in your life. Slide 7: Managing Investment Risk Lists types of investment risks: market, inflation, interest rate, liquidity, ESG, geographic, and political. The slide also has an image of a mother with her child looking at her phone. Presenter: We hear a lot about the important of diversifying your portfolio, but do you know why investors are given this advice? While diversification can help take advantage of the different investment opportunities available to you, its main purpose is to minimize risk. This part of the webinar focuses on seven different investment risks and how various asset classes and investment funds react when exposed to them. Slide 8: Market Risk and Volatility Explains market risk and volatility, noting that volatile investments fluctuate more in value. The slide also has an image of a woman taking care of her plants.
Presenter: Let’s start with market risk and volatility. If you watch the news, you likely know that the market has normal—but not usually predictable—ups and downs. These short-term changes in the market are known as market risk. How much the price of an investment moves in either direction from its average price, is known as volatility. Investments that increase or decrease a lot when markets change are volatile. Investments that don’t change very much over time are not considered to be volatile. For example, the value of an investment fund that invests in equities is more likely to go up when markets go up and go down when markets go down. Now consider a money market fund. A money market fund doesn’t change much at all when markets go up or down. This means that equity funds are more susceptible to market risks than money market funds and are also more volatile.
Slide 9: Market Ups vs. Downs Shows that historically, bull markets (ups) have outperformed bear markets (downs) since 1960. This data is showcased in a bar graph format.
Presenter: Some investors try to time their investments with these market ups and downs. It makes sense, right? You want to buy when prices are low and sell your investments when they’re at their highest. The only problem with this strategy is most of us can’t predict the future. Studies show that when investors leave their money alone throughout the ups and downs, they generally end up doing better than if they tried to time the market. So what do you do? Often, doing nothing is the right answer. If you look at the table above you can see the years the market has gone up, shown in blue, by far outweighs the years it went down, as shown in orange. As long as your investments are right for you based on your time horizon, savings goals and risk tolerance, you don’t need to adjust them based on short-term market performance.
Slide 10: Strategies for Managing Market Risk Recommends staying informed, focusing on long-term goals, diversifying, and including less correlated funds. The slide also has an image of two women looking at information on their tablet.
Presenter: Here are some strategies you can use to manage market risk: First, being aware of what’s going on with the economy can help you feel more comfortable with changes to the value of your investments. For example, if you notice the value of your portfolio is going down, but already know that the economy is in a recession, you’d realize that market performance is likely impacting your investment’s performance. If you notice your investments are decreasing in value, but the markets are booming, then it could be time to reevaluate how your money is invested. As I mentioned in my previous slide, another option for managing market risk is by focusing on your long-term plans rather than short-term investment performance. This is because we know it’s cyclical and based on historical data, your investments are likely to recover. If you don’t have time to wait out market ups and downs, then this also could be a time to review what you’re invested in and make sure it truly aligns with your goals. Investing in foreign markets is also another way to offset market risk. This is because international markets and industries may react differently to those in Canada, even during similar economic conditions. Finally, if you’re uncomfortable with any changes in value, regardless of whether or not they’re temporary, then consider investing in funds that are less correlated to market changes. Investment funds with a high proportion of fixed income holdings are an example of this type of investment. Slide 11: Interest Rate Risk Describes how rising interest rates can reduce the value of fixed income securities and suggests diversification. The slide also has an image of a man using his phone. Presenter: Interest rate risk is the risk of the value of your portfolio changing because of changing interest rates. While fixed income investments can provide a safe haven from market risk, they are more susceptible to interest rate risk. That’s because the value of fixed income securities, like bonds, go down when interest rates go up. In our last slide we spoke about how fixed income investments help protect your portfolio from market risk, but now I’m telling you fixed income investments are more susceptible to interest rate risk. So what’s the answer? The answer is to diversify and have a mixture of asset classes in your portfolio. Slide 12: Inflation Risk Explains how inflation can erode investment returns, especially in retirement, and may contribute to interest rate risk. The slide also has an image of a man gardening. Presenter: Before we talk about inflation risk, let’s define inflation. Inflation is the steady rise in the price of goods and services in an economy over time. If you’ve been to the grocery store in the past few years you’ve probably noticed how much higher food prices are. This is inflation. The problem with inflation is that it lowers the buying power of your money over time. $100 buys you far less groceries today than it did five years ago. If inflation is rising prices, then what is inflation risk and how does it relate to investing? Inflation risk is the possibility that rising prices could outpace the returns delivered by your investments and your buying power will go down. For example, if your investment earns you a 3% return but the inflation rate is 3.9% like it was in 2023, then although the value of your investment went up by 3%, because of inflation your overall buying power went down by 0.9%. When it comes to investing for your retirement, inflation risk should be a big consideration for you when you’re choosing your investments. Even if your investments are performing well, if they're not keeping up with inflation, then those returns may not go as far as you need them to in retirement. Overall, inflation is a long-term risk that can erode your financial security over time. Inflation can also contribute to interest rate risk. As inflation goes up, the government may raise the prime rates to counteract it, the value of fixed income investments that are already on the market could decrease. Slide 13: Equities and Inflation Shows that equities historically outperform inflation, citing a 6.1% return vs. 2.6% inflation over 10 years. Presenter: Having equities in your investment portfolio can help to hedge against inflation risk. This is because compared to other asset classes, like fixed income and cash, they’ve historically had higher rates of return. Using the average rate of return of the S&P/TSX Composite Index over the past ten years as an example, the annual rate of return was 6.1%. This exceeded the inflation rate which averaged 2.6% in the same period. Slide 14: Liquidity Risk Defines liquidity and liquidity risk, and notes that most group plan funds are highly liquid. Presenter: Liquidity is how easily an investment can be bought or sold. Similarly, liquidity risk is the risk of not being able to sell your investment in the time frame you want to. Some investments are more impacted by liquidity risk than others. For example, real estate isn’t very liquid because you need to list it for sale, find a buyer and complete the transaction, which usually takes at least a couple of months. CIAs are another example. They’re locked in until a certain date and you can’t get your money ahead of time. Fortunately, investment funds offered to you in your group savings plan (with the exception of real estate funds) are highly liquid. You can easily change the fund you’re invested in and choose another without fees or penalties (unless you’re trading excessively). This flexibility can be a good complement to other less liquid assets you’ve invested in, like your home. Slide 15: ESG Risks and Responsible Investing Discusses how environmental, social, and governance issues can affect company performance and investment decisions. The slide also has an image of a man and a woman looking at their laptop. Presenter: The next risk we’re going to talk about today are the risks related to a company’s environmental impact, social responsibility practices and corporate governance policies. Investing in companies with good practices in these areas is known as ESG investing or responsible investing. Past events like BP’s Deepwater Horizon disaster, Volkswagen ‘Emissions-gate’ and various other corporate scandals have shown what lack of ESG integration can have on a company’s performance and reputation. Also, they’ve demonstrated how good ESG practices could’ve not only prevented tragedy but helped protect shareholder profits. When integrating ESG, fund managers and investors dig deeper than a company’s financial reports. They look for things like board structure or environmental footprint to create a more complete view of a company’s long-term outlook for success, as well as identifying any inherent or future risks. Let’s take Deepwater Horizon as an example; in the three years leading up to the explosion, regulators had cited BP for 760 “egregious and willful” safety violations, indicating that a disaster was not only preventable, but likely.
To an asset manager or investor who’d only been looking at the financials, these violations could have been easy to miss. Those who’d been looking at things like BP’s health and safety track record - or in other words, had been applying ESG - could have seen that these warning signs signaled a high-risk investment. As an investor, including funds with a responsible investing mandate can help protect your portfolio against these risks. Slide 16: Geographic and Country Risk Explains risks of concentrating investments in one region and benefits of global diversification. Presenter: Speaker’s notes, use this commentary (provided by Mike) as a guide: How much of your investment portfolio is made up of Canadian-based investments? Or North American? While you may have a diversity of asset classes in your portfolio, if they’re mainly in one region, you’ve opened yourself up to geographic risk. Geographic diversification is based on the idea that financial markets in different parts of the world may not be highly correlated with one another. For example, the economy in Canada could be in a recession while the economy in Germany could be booming. Investing in more than one region can potentially reduce your portfolio’s volatility, because international markets and industries may react differently to those in Canada, even under similar economic conditions. And, Canada represents only a small fraction of global gross domestic product (GDP) and just over 3%1 of the world’s capital markets. The GDP is the total of all value added created in an economy. When you only invest in Canada, you’re missing out on some of the world’s leading brands and industries. Some examples are healthcare companies, auto manufacturers and pharmaceutical companies. Each country has its own risks to consider when investing in it. Things like political instability and strict rules for foreign investors can impact how your investments perform. To help investors uncover how much risk is involved in a particular country, they’re credit-rated by various large agencies. Those with a higher rating are generally considered to be safer to invest in than those with a lower credit rating. Slide 17: Geopolitical Risks Lists geopolitical risks like wars and cyberattacks that can impact global markets. The slide also has an image of a woman looking at a scenery. Presenter: Speaker’s notes, use this commentary (provided by Mike) as a guide: 2025 has started with significant headlines and political actions that have greatly impacted financial markets. This environment has raised the geopolitical risk for investors and assessing the potential long-term impacts on their portfolios. Geopolitical risk is the threat of adverse human and government actions that disrupt international relations some examples include wars, terrorism, government tensions and technology disruptions. More specifically, some of the top threats that are prevalent today include: Tariffs imposed by the United States, potential impacts of deglobalization trends and the increase of protectionist economic policies. The continued wars between Russia/ Ukraine and Israeli-Palestinian conflicts which affect energy markets and government spending policies. As well as the continued increase in cyber warfare and cyber terrorism which is a threat to governments and private companies. These risk affect how investors perceive long term growth projections and may negatively impact and heighten the other risks we have just discussed, like inflation and interest rates indirectly. So as an investor there is a lot to think about when considering an investment portfolio. We will discuss some of the lasting principles that remain when selecting an investment portfolio that should be considered in spite of the risks that are present today. Slide 18: Don’t Play the Guessing Game Encourages diversification to avoid trying to time the market. Presenter: Constant market fluctuations reinforce the need to periodically review the asset diversification of your investment portfolio to ensure it continues to meet your goals. Diversification means combining investments that don’t react the same way to market changes. That way the strength of some investments can work to balance any weakness in the others and help reduce your overall risk to your investment portfolio. Slide 19: Fund Management Overview Introduces fund objectives and management styles, including active management. The slide also has an image of an older couple holding hands. Presenter: That wraps up the risk management portion of today’s webinar. Now we’re going to take a deeper dive into understanding how funds are managed, including fund objectives and passive and active fund management styles. Slide 20: Fund Objectives Provides examples of fund objectives for different types of funds (growth, bond, balanced). Presenter: When you want to learn more about an investment fund, its objective is one of the first things to look at. It tells you what underlying securities the fund invests in. Here are some examples of objectives: The American Growth fund is long-term growth through investing in in American companies. The Core Bond fund investment’s objective is moderate capital growth and invests in high-quality bonds. The Balanced profile fund invests in other Canada Life funds to achieve a specific equity to fixed income asset mix. Slide 21: Fund Manager Styles Introduces different styles fund managers may use. Presenter: Another consideration when you’re choosing investment funds for your portfolio are whether the funds you’re considering are actively or passively managed. As we discussed in our previous investing webinar, every fund is managed by an investment manager. It’s an investment manager’s job to choose which investments to invest the fund’s money into. They’ll do this based on the fund's objectives. There are two fund manager styles; funds are either actively or passively managed. An active fund manager seeks to outperform an index or benchmark by actively buying and selling underlying investments based on objectives and parameters they have established for the fund. They can be further distinguished as growth, value, growth at a reasonable price or core managers. Passively managed funds are those that track an index or benchmark. These usually include the word “index” in the fund name and typically offer lower investment management fees. Slide 22: Actively Managed Fund Styles Describes characteristics of actively managed funds. Presenter: There are four different styles of actively managed funds. A growth manager focuses on companies that have a history of strong earnings and revenue growth with continued potential for future growth. They may purchase stocks at a higher price provided the potential growth is strong. A value manager focuses on fundamentally strong companies that may be undervalued or out-of-favour. A manager that uses a GARP style, or growth at a reasonable price, combines both a growth and value approach. They look for stocks at reasonable prices that offer potential for future growth. A core manager has no particular intentional style bias and tends to combine growth and value representative of the overall market. Slide 23: Managing Investments Online Encourages users to log into My Canada Life at Work to view balances, contributions, and fund reports. The slide also has an image of a man using his phone. Presenter: The best way to learn more about the funds available to you through your group plan is by signing into mycanadalifeatwork.com. You can find important investment information including: Current balance of your investments; Your contribution options and; Fund reports. Slide 24: Where to Find Fund Reports Directs users to the location of fund reports on the online portal. The slide also explains this using a screenshot of the page. Presenter: Fund reports are one of the best ways to get information about your investment options. Here’s where you can find them: Sign into My Canada Life at Work Select Info centre from the menu on the left In the info centre for savings section select “Fund reviews and fees” From here you’ll find all the investment funds available to you. To make things easier for you, they’re organized by asset class. Select the fund you want to learn more about for the fund report. Slide 25: Reading a Fund Report Introduces how to interpret fund reports. The slide also has an image of a sample fund report. Presenter: Fund reports are an important tool in making investment decisions. Using the Balanced Continuum fund as an example, lets review together what information they include. Slide 26: Fund Facts and Manager Info Explains how to read fund facts, volatility, objectives, and manager details. The slide also has an image of a sample fund report. Presenter: Right at the top you’ll find Fund facts. This tells you which asset class your investment belongs to, how long the fund has been around and the size of the fund. It also shows you what the operating expenses are. As you can see in our example, this is a Balanced fund, with $2.11 billion in assets and operating expenses are 0.046%, which have remained fairly stable over the last three years. The next thing you’ll see is the fund objective. This again will help you determine if it’s something that make sense for your portfolio. Now under the fund facts is the volatility meter. This will help you to decide if the fund’s volatility is what you’re comfortable with. Finally, under the Volatility meter you can find the investment manager. With this example it’s Canada Life. Different managers take different approaches to investing. Choosing funds managed by a variety of investment managers and styles means your investments won’t be affected the same way by market ups and downs. It’s another way of diversifying your investments. Slide 27: Performance and Composition Describes how to review historical performance and fund composition. The slide also has an image of a sample fund report. Presenter: Historical performance for each fund is also provided. This gives you an opportunity to review how it has performed in the long-term. Performance is compared to a benchmark. The benchmark is a guideline – It’s optimal to choose a fund that outperforms the benchmark. As you can see with this fund, over the past ten years the fund’s performance has been fairly in line with the benchmark. Under the historical performance, you’ll find the fund’s composition. The circle chart shows how the fund’s investments are divided up between different asset classes, while the Top funds section tells you the biggest investments the fund makes. We can see the 38.9% of the balanced fund is invested in fixed income assets, 38.5% is invested in foreign equity, 16.8% is invested in Canadian equity and finally 5.8% of the assets are invested in real estate. The top funds are in alignment with this split with the biggest investment being in the Core Plus Bond fund which makes up 12.6% of the fund’s assets. The composition portion of this report is what will help you to ensure it matches up with your desired asset mix based on your investment personality questionnaire results. Slide 28: Saving for Life Resources Lists webinars, self-serve tools, and newsletters to support financial education. The slide also has an image of a woman using her laptop. Presenter: Want to continue your retirement and savings education journey? Register for more webinars on a variety of different topics Keep an eye on your email inbox for the semi-annual Savings for Live newsletter which will provide you insights about your plan and your savings goals. If you’re not receiving it, registering on My Canada Life at Work can help ensure we have your email address on file. Head over to canadalife.com/smartpath to access articles, videos and calculators Slide 29: Questions and Contact Info Provides contact information for Canada Life and a disclaimer about the educational nature of the content. Presenter: Thank you for joining us today.
Introduction: This webinar is presented in ASL by a middle-aged man. He is standing in front of a grey screen with slides to his left. This webinar is provided by Canada Life and many of the slides have the Canada Life logo on them.
Slide 1: Investing – Beyond the Basics Title slide introducing the presentation topic. The slide also has an image on a man walking his pet dog. Presenter: Hi Everyone and welcome to the webinar!
Slide 2: Benjamin Graham Quote A quote from Benjamin Graham emphasizing that investment management is about managing risks, not returns. Presenter: Slide 3: Webinar Agenda Lists the topics covered in the webinar: high-touch investing, investment personality, managing risk, fund objectives, and accessing fund reports. The slide also has an image of a disabled woman speaking on the phone. Presenter: Today’s session is called beyond the basics, but we’re still going to focus only on investments that are available to you through your group plan. That means we won’t talk about things like cryptocurrencies and stock options. Here’s what we will cover… - Define what a high touch investing approach is - Review how to use the investment personality questionnaire to guide your investment decisions. - Discuss things to consider when building an investment portfolio including: - Investment risks - Fund objectives and - Fund management styles -We’ll finish with where you can find detailed investment fund reports and what information you can find on them. Slide 4: Want to Build Your Own Portfolio? Introduces the concept of building a personalized investment portfolio. Presenter: In our last investing webinar, Basics for beginners, we focused on ready-made investment solutions. These solutions use no touch and low touch approaches which require the least amount of effort from the investor. That’s because to use these approaches all you need to do is choose one fund that matches either your retirement date, your risk tolerance, or both. If you want to build your own investment portfolio by selecting a few investments to meet your goals, then that means you want to use a high touch approach. It’s called high touch, because it’s more hands on than the other two approaches. With this strategy you’ll need to regularly review your investments and make changes when your goals change. You'll also need to rebalance your investments as their values grow and consider reducing your portfolio's risk as you approach retirement. Discuss that most group plans have the options to build an investment portfolio using individual segregated funds that invest in a specific asset class or industry This approach of building your own portfolio takes knowledge, effort and an understanding of how to assess different investments and how they differentiate from other funds. Slide 5: Your Investment Personality Encourages users to take the investment personality questionnaire at canadalife.com/ipq.
Presenter: A good place to start for any investment approach is by completing the Investment Personality Questionnaire. The questionnaire asks you 14 questions to assess your risk tolerance, time horizon and goals. Once you finish it, you’ll know your score and the asset mix that’s right for you. Slide 6: Choose Investments Based on Personality Advises aligning investment choices with personal investment personality. Presenter: With the high touch approach, use your questionnaire results as a guide to inform your investment selection. Ideally, the combined percentages of your investment holdings will match your investment personality results. Your suggested asset mix will be a combination of percentages of different asset classes. You may select one or more investment funds for each asset class according to the suggested percentage. Most people think this is the final step. As a matter of fact, this is simply the beginning. Your investment objectives, risk tolerance and time horizon will change over time. You’ll want to review, monitor and adjust your investment portfolio from time to time to match the changes in your life. Slide 7: Managing Investment Risk Lists types of investment risks: market, inflation, interest rate, liquidity, ESG, geographic, and political. The slide also has an image of a mother with her child looking at her phone. Presenter: We hear a lot about the important of diversifying your portfolio, but do you know why investors are given this advice? While diversification can help take advantage of the different investment opportunities available to you, its main purpose is to minimize risk. This part of the webinar focuses on seven different investment risks and how various asset classes and investment funds react when exposed to them. Slide 8: Market Risk and Volatility Explains market risk and volatility, noting that volatile investments fluctuate more in value. The slide also has an image of a woman taking care of her plants.
Presenter: Let’s start with market risk and volatility. If you watch the news, you likely know that the market has normal—but not usually predictable—ups and downs. These short-term changes in the market are known as market risk. How much the price of an investment moves in either direction from its average price, is known as volatility. Investments that increase or decrease a lot when markets change are volatile. Investments that don’t change very much over time are not considered to be volatile. For example, the value of an investment fund that invests in equities is more likely to go up when markets go up and go down when markets go down. Now consider a money market fund. A money market fund doesn’t change much at all when markets go up or down. This means that equity funds are more susceptible to market risks than money market funds and are also more volatile.
Slide 9: Market Ups vs. Downs Shows that historically, bull markets (ups) have outperformed bear markets (downs) since 1960. This data is showcased in a bar graph format.
Presenter: Some investors try to time their investments with these market ups and downs. It makes sense, right? You want to buy when prices are low and sell your investments when they’re at their highest. The only problem with this strategy is most of us can’t predict the future. Studies show that when investors leave their money alone throughout the ups and downs, they generally end up doing better than if they tried to time the market. So what do you do? Often, doing nothing is the right answer. If you look at the table above you can see the years the market has gone up, shown in blue, by far outweighs the years it went down, as shown in orange. As long as your investments are right for you based on your time horizon, savings goals and risk tolerance, you don’t need to adjust them based on short-term market performance.
Slide 10: Strategies for Managing Market Risk Recommends staying informed, focusing on long-term goals, diversifying, and including less correlated funds. The slide also has an image of two women looking at information on their tablet.
Presenter: Here are some strategies you can use to manage market risk: First, being aware of what’s going on with the economy can help you feel more comfortable with changes to the value of your investments. For example, if you notice the value of your portfolio is going down, but already know that the economy is in a recession, you’d realize that market performance is likely impacting your investment’s performance. If you notice your investments are decreasing in value, but the markets are booming, then it could be time to reevaluate how your money is invested. As I mentioned in my previous slide, another option for managing market risk is by focusing on your long-term plans rather than short-term investment performance. This is because we know it’s cyclical and based on historical data, your investments are likely to recover. If you don’t have time to wait out market ups and downs, then this also could be a time to review what you’re invested in and make sure it truly aligns with your goals. Investing in foreign markets is also another way to offset market risk. This is because international markets and industries may react differently to those in Canada, even during similar economic conditions. Finally, if you’re uncomfortable with any changes in value, regardless of whether or not they’re temporary, then consider investing in funds that are less correlated to market changes. Investment funds with a high proportion of fixed income holdings are an example of this type of investment. Slide 11: Interest Rate Risk Describes how rising interest rates can reduce the value of fixed income securities and suggests diversification. The slide also has an image of a man using his phone. Presenter: Interest rate risk is the risk of the value of your portfolio changing because of changing interest rates. While fixed income investments can provide a safe haven from market risk, they are more susceptible to interest rate risk. That’s because the value of fixed income securities, like bonds, go down when interest rates go up. In our last slide we spoke about how fixed income investments help protect your portfolio from market risk, but now I’m telling you fixed income investments are more susceptible to interest rate risk. So what’s the answer? The answer is to diversify and have a mixture of asset classes in your portfolio. Slide 12: Inflation Risk Explains how inflation can erode investment returns, especially in retirement, and may contribute to interest rate risk. The slide also has an image of a man gardening. Presenter: Before we talk about inflation risk, let’s define inflation. Inflation is the steady rise in the price of goods and services in an economy over time. If you’ve been to the grocery store in the past few years you’ve probably noticed how much higher food prices are. This is inflation. The problem with inflation is that it lowers the buying power of your money over time. $100 buys you far less groceries today than it did five years ago. If inflation is rising prices, then what is inflation risk and how does it relate to investing? Inflation risk is the possibility that rising prices could outpace the returns delivered by your investments and your buying power will go down. For example, if your investment earns you a 3% return but the inflation rate is 3.9% like it was in 2023, then although the value of your investment went up by 3%, because of inflation your overall buying power went down by 0.9%. When it comes to investing for your retirement, inflation risk should be a big consideration for you when you’re choosing your investments. Even if your investments are performing well, if they're not keeping up with inflation, then those returns may not go as far as you need them to in retirement. Overall, inflation is a long-term risk that can erode your financial security over time. Inflation can also contribute to interest rate risk. As inflation goes up, the government may raise the prime rates to counteract it, the value of fixed income investments that are already on the market could decrease. Slide 13: Equities and Inflation Shows that equities historically outperform inflation, citing a 6.1% return vs. 2.6% inflation over 10 years. Presenter: Having equities in your investment portfolio can help to hedge against inflation risk. This is because compared to other asset classes, like fixed income and cash, they’ve historically had higher rates of return. Using the average rate of return of the S&P/TSX Composite Index over the past ten years as an example, the annual rate of return was 6.1%. This exceeded the inflation rate which averaged 2.6% in the same period. Slide 14: Liquidity Risk Defines liquidity and liquidity risk, and notes that most group plan funds are highly liquid. Presenter: Liquidity is how easily an investment can be bought or sold. Similarly, liquidity risk is the risk of not being able to sell your investment in the time frame you want to. Some investments are more impacted by liquidity risk than others. For example, real estate isn’t very liquid because you need to list it for sale, find a buyer and complete the transaction, which usually takes at least a couple of months. CIAs are another example. They’re locked in until a certain date and you can’t get your money ahead of time. Fortunately, investment funds offered to you in your group savings plan (with the exception of real estate funds) are highly liquid. You can easily change the fund you’re invested in and choose another without fees or penalties (unless you’re trading excessively). This flexibility can be a good complement to other less liquid assets you’ve invested in, like your home. Slide 15: ESG Risks and Responsible Investing Discusses how environmental, social, and governance issues can affect company performance and investment decisions. The slide also has an image of a man and a woman looking at their laptop. Presenter: The next risk we’re going to talk about today are the risks related to a company’s environmental impact, social responsibility practices and corporate governance policies. Investing in companies with good practices in these areas is known as ESG investing or responsible investing. Past events like BP’s Deepwater Horizon disaster, Volkswagen ‘Emissions-gate’ and various other corporate scandals have shown what lack of ESG integration can have on a company’s performance and reputation. Also, they’ve demonstrated how good ESG practices could’ve not only prevented tragedy but helped protect shareholder profits. When integrating ESG, fund managers and investors dig deeper than a company’s financial reports. They look for things like board structure or environmental footprint to create a more complete view of a company’s long-term outlook for success, as well as identifying any inherent or future risks. Let’s take Deepwater Horizon as an example; in the three years leading up to the explosion, regulators had cited BP for 760 “egregious and willful” safety violations, indicating that a disaster was not only preventable, but likely.
To an asset manager or investor who’d only been looking at the financials, these violations could have been easy to miss. Those who’d been looking at things like BP’s health and safety track record - or in other words, had been applying ESG - could have seen that these warning signs signaled a high-risk investment. As an investor, including funds with a responsible investing mandate can help protect your portfolio against these risks. Slide 16: Geographic and Country Risk Explains risks of concentrating investments in one region and benefits of global diversification. Presenter: Speaker’s notes, use this commentary (provided by Mike) as a guide: How much of your investment portfolio is made up of Canadian-based investments? Or North American? While you may have a diversity of asset classes in your portfolio, if they’re mainly in one region, you’ve opened yourself up to geographic risk. Geographic diversification is based on the idea that financial markets in different parts of the world may not be highly correlated with one another. For example, the economy in Canada could be in a recession while the economy in Germany could be booming. Investing in more than one region can potentially reduce your portfolio’s volatility, because international markets and industries may react differently to those in Canada, even under similar economic conditions. And, Canada represents only a small fraction of global gross domestic product (GDP) and just over 3%1 of the world’s capital markets. The GDP is the total of all value added created in an economy. When you only invest in Canada, you’re missing out on some of the world’s leading brands and industries. Some examples are healthcare companies, auto manufacturers and pharmaceutical companies. Each country has its own risks to consider when investing in it. Things like political instability and strict rules for foreign investors can impact how your investments perform. To help investors uncover how much risk is involved in a particular country, they’re credit-rated by various large agencies. Those with a higher rating are generally considered to be safer to invest in than those with a lower credit rating. Slide 17: Geopolitical Risks Lists geopolitical risks like wars and cyberattacks that can impact global markets. The slide also has an image of a woman looking at a scenery. Presenter: Speaker’s notes, use this commentary (provided by Mike) as a guide: 2025 has started with significant headlines and political actions that have greatly impacted financial markets. This environment has raised the geopolitical risk for investors and assessing the potential long-term impacts on their portfolios. Geopolitical risk is the threat of adverse human and government actions that disrupt international relations some examples include wars, terrorism, government tensions and technology disruptions. More specifically, some of the top threats that are prevalent today include: Tariffs imposed by the United States, potential impacts of deglobalization trends and the increase of protectionist economic policies. The continued wars between Russia/ Ukraine and Israeli-Palestinian conflicts which affect energy markets and government spending policies. As well as the continued increase in cyber warfare and cyber terrorism which is a threat to governments and private companies. These risk affect how investors perceive long term growth projections and may negatively impact and heighten the other risks we have just discussed, like inflation and interest rates indirectly. So as an investor there is a lot to think about when considering an investment portfolio. We will discuss some of the lasting principles that remain when selecting an investment portfolio that should be considered in spite of the risks that are present today. Slide 18: Don’t Play the Guessing Game Encourages diversification to avoid trying to time the market. Presenter: Constant market fluctuations reinforce the need to periodically review the asset diversification of your investment portfolio to ensure it continues to meet your goals. Diversification means combining investments that don’t react the same way to market changes. That way the strength of some investments can work to balance any weakness in the others and help reduce your overall risk to your investment portfolio. Slide 19: Fund Management Overview Introduces fund objectives and management styles, including active management. The slide also has an image of an older couple holding hands. Presenter: That wraps up the risk management portion of today’s webinar. Now we’re going to take a deeper dive into understanding how funds are managed, including fund objectives and passive and active fund management styles. Slide 20: Fund Objectives Provides examples of fund objectives for different types of funds (growth, bond, balanced). Presenter: When you want to learn more about an investment fund, its objective is one of the first things to look at. It tells you what underlying securities the fund invests in. Here are some examples of objectives: The American Growth fund is long-term growth through investing in in American companies. The Core Bond fund investment’s objective is moderate capital growth and invests in high-quality bonds. The Balanced profile fund invests in other Canada Life funds to achieve a specific equity to fixed income asset mix. Slide 21: Fund Manager Styles Introduces different styles fund managers may use. Presenter: Another consideration when you’re choosing investment funds for your portfolio are whether the funds you’re considering are actively or passively managed. As we discussed in our previous investing webinar, every fund is managed by an investment manager. It’s an investment manager’s job to choose which investments to invest the fund’s money into. They’ll do this based on the fund's objectives. There are two fund manager styles; funds are either actively or passively managed. An active fund manager seeks to outperform an index or benchmark by actively buying and selling underlying investments based on objectives and parameters they have established for the fund. They can be further distinguished as growth, value, growth at a reasonable price or core managers. Passively managed funds are those that track an index or benchmark. These usually include the word “index” in the fund name and typically offer lower investment management fees. Slide 22: Actively Managed Fund Styles Describes characteristics of actively managed funds. Presenter: There are four different styles of actively managed funds. A growth manager focuses on companies that have a history of strong earnings and revenue growth with continued potential for future growth. They may purchase stocks at a higher price provided the potential growth is strong. A value manager focuses on fundamentally strong companies that may be undervalued or out-of-favour. A manager that uses a GARP style, or growth at a reasonable price, combines both a growth and value approach. They look for stocks at reasonable prices that offer potential for future growth. A core manager has no particular intentional style bias and tends to combine growth and value representative of the overall market. Slide 23: Managing Investments Online Encourages users to log into My Canada Life at Work to view balances, contributions, and fund reports. The slide also has an image of a man using his phone. Presenter: The best way to learn more about the funds available to you through your group plan is by signing into mycanadalifeatwork.com. You can find important investment information including: Current balance of your investments; Your contribution options and; Fund reports. Slide 24: Where to Find Fund Reports Directs users to the location of fund reports on the online portal. The slide also explains this using a screenshot of the page. Presenter: Fund reports are one of the best ways to get information about your investment options. Here’s where you can find them: Sign into My Canada Life at Work Select Info centre from the menu on the left In the info centre for savings section select “Fund reviews and fees” From here you’ll find all the investment funds available to you. To make things easier for you, they’re organized by asset class. Select the fund you want to learn more about for the fund report. Slide 25: Reading a Fund Report Introduces how to interpret fund reports. The slide also has an image of a sample fund report. Presenter: Fund reports are an important tool in making investment decisions. Using the Balanced Continuum fund as an example, lets review together what information they include. Slide 26: Fund Facts and Manager Info Explains how to read fund facts, volatility, objectives, and manager details. The slide also has an image of a sample fund report. Presenter: Right at the top you’ll find Fund facts. This tells you which asset class your investment belongs to, how long the fund has been around and the size of the fund. It also shows you what the operating expenses are. As you can see in our example, this is a Balanced fund, with $2.11 billion in assets and operating expenses are 0.046%, which have remained fairly stable over the last three years. The next thing you’ll see is the fund objective. This again will help you determine if it’s something that make sense for your portfolio. Now under the fund facts is the volatility meter. This will help you to decide if the fund’s volatility is what you’re comfortable with. Finally, under the Volatility meter you can find the investment manager. With this example it’s Canada Life. Different managers take different approaches to investing. Choosing funds managed by a variety of investment managers and styles means your investments won’t be affected the same way by market ups and downs. It’s another way of diversifying your investments. Slide 27: Performance and Composition Describes how to review historical performance and fund composition. The slide also has an image of a sample fund report. Presenter: Historical performance for each fund is also provided. This gives you an opportunity to review how it has performed in the long-term. Performance is compared to a benchmark. The benchmark is a guideline – It’s optimal to choose a fund that outperforms the benchmark. As you can see with this fund, over the past ten years the fund’s performance has been fairly in line with the benchmark. Under the historical performance, you’ll find the fund’s composition. The circle chart shows how the fund’s investments are divided up between different asset classes, while the Top funds section tells you the biggest investments the fund makes. We can see the 38.9% of the balanced fund is invested in fixed income assets, 38.5% is invested in foreign equity, 16.8% is invested in Canadian equity and finally 5.8% of the assets are invested in real estate. The top funds are in alignment with this split with the biggest investment being in the Core Plus Bond fund which makes up 12.6% of the fund’s assets. The composition portion of this report is what will help you to ensure it matches up with your desired asset mix based on your investment personality questionnaire results. Slide 28: Saving for Life Resources Lists webinars, self-serve tools, and newsletters to support financial education. The slide also has an image of a woman using her laptop. Presenter: Want to continue your retirement and savings education journey? Register for more webinars on a variety of different topics Keep an eye on your email inbox for the semi-annual Savings for Live newsletter which will provide you insights about your plan and your savings goals. If you’re not receiving it, registering on My Canada Life at Work can help ensure we have your email address on file. Head over to canadalife.com/smartpath to access articles, videos and calculators Slide 29: Questions and Contact Info Provides contact information for Canada Life and a disclaimer about the educational nature of the content. Presenter: Thank you for joining us today.
This webinar is all about the three pillars of retirement income. It will help you better understand how government benefits, employer-sponsored retirement saving plans and your personal savings can work together to provide for you.
Learn more about:
- CPP (Canada Pension Plan) or QPP (Quebec Pension Plan) and OAS (Old Age Security) including how they work and how to estimate how much you’ll receive.
- Tax benefits and implications of different registered savings plans.
- Where to get more information and advice.
Slide 1 Retirement – Where will my money come from?
Welcome slide introducing the webinar. The background includes a photo of an older woman looking outside her window.
Presenter: Hello and welcome to this information session for you members of Group Plans here at Canada Life. Our session today is all about the three pillars of retirement income for Canadians. Our goal, is to provide you information that will help you better understand how government benefits, employer sponsored retirement savings plans ,and your personal savings can work together to provide you support during your retirement years.
Slide 2 [No Title]
Instructions for participants: Canada Life consultants
are available to answer questions via the chat function during the webinar.
Presenter:
Slide 3 Where do unretired Canadians think
their retirement income will come from?
Bar chart showing survey results from
unretired Canadians. Top sources include CPP/QPP, OAS, RRSPs, TFSAs, and
continuing to work. Lesser sources include home sales, rental income, and
crypto.
Presenter:
When you think ahead to your retirement, where do you
you think your income will come from? A recent survey commissioned by the
Healthcare of Ontario Pension plan asked unretired Canadians that question
and here are the results. Respondents were asked to select all the income
sources that applied to them.
Slide 4 Income sources – Working years vs. in
retirement
Diagram comparing income sources during
working years (employment income) versus retirement (government benefits,
group savings, personal savings). Visual shows income sources shifting over
time.
Presenter:
The survey results demonstrate that there are many
potential income sources in retirement. All these different sources can be
put into three main categories – Government retirement benefits,
employer-sponsored plans, also known as group
plans, and personal savings.
If you plan to keep working part-time in retirement,
like many Canadians do, earned income could also be included in your
retirement income sources, but to a lesser degree.
Slide 5 Agenda
Outlines the session’s focus: government
retirement benefits, turning registered savings into income, and available
resources. Background image shows an old couple smiling.
Presenter:
Today you are going to learn more about government
retirement benefits, how you can convert your collective employer sponsor
plan, your personal savings that you've accumulated over the years and turn
it into retirement income.
We're going to end our time focusing on the tools and
the resources available at Canolife to help you determine the income you
could receive in retirement.
Slide 6 Government retirement benefits
Title slide introducing the section on
government retirement benefits.
Presenter: Since each of you joining us today are at different stages
in your life and perhaps in your savings journey, let's just take a moment to
level set.
We're going to start with a review all of the
government benefits in more detail.
Slide 7 Types of government retirement
benefits
Lists three types: Guaranteed Income
Supplement (GIS), Old Age Security (OAS), and Canada/Quebec Pension Plans
(CPP/QPP). Notes that enhanced CPP/QPP aims to replace one-third of average
work earnings.
Presenter:
The three sources of government benefits you may be
eligible to receive are the Canada Pension Plan, known as CPP and the Quebec
Pension Plan – the QPP, for those joining us who reside in Quebec.
We then have Old Age Security, more commonly known as
OAS, as well as the potential to receive GIS, which is the guaranteed income
supplement.
Slide 8 Canada Pension Plan (CPP) and Quebec
Pension Plan (QPP)
Table explaining when benefits start (age
60–70 for CPP, up to 72 for QPP), taxation (yes), and how benefit amounts are
calculated. Maximum monthly payment at age 65 is $1,433 as of January 2025.
Presenter:
The Canada Pension Plan – CPP – is a contributory
public pension plan that provides a basic level of income in retirement for
workers throughout Canada – except for Quebec. Workers in Quebec are
covered by the Quebec Pension Plan – QPP – which provides similar
benefits. These both are taxable benefits and are reviewed annually.
The amount you will receive from these benefits
depends on a few things:
- your average earnings throughout your working life,
- how much and for how long you’ve contributed to
CPP/QPP while working,
- and the age you decide to start receiving
your benefit.
Understanding what you’ll receive and when it makes
sense - for you - to start receiving these benefits can make a big difference
as you plan for your retirement and your anticipated retirement
income.
We encourage you to
confirm your individual estimates of your monthly CPP/QPP
retirement amount by logging into your My Service Canada Account. If you are
going to be receiving QPP you can request a statement through My Account with
Retraite Quebec.
Slide 9 When will I start receiving CPP or
QPP?
Explains how starting earlier or later than
age 65 affects benefit amounts. Includes a chart showing reductions for early
start and increases for delayed start. The slide also shows an image of an
old couple dancing together.
Presenter:
The standard age to recieve these benefits is 65.You
can choose to start receiving it sooner or later but if you do, it will
change the amount you receive.
The soonest you can start receiving CPP or QPP is at
age 60. Your benefit amount is reduced by 0.6% for each month you take
it before age 65.
The latest you can start receiving CPP is at age 70
and for QPP age 72. Your benefit amount is increased by 0.7% for each
month you delay taking it after you’ve turned 65.
Slide 10 Deciding when to take CPP – Example:
Jean
Example of Jean deciding when to take CPP. At
60, she gets $480/month; at 65, $750; at 70, $1,065. Includes a photo of a
smiling woman doing pottery.
Presenter:
We talked a lot about percentages, but let's add a
dollar value to show you the difference of those percentages. In this
example, for illustration purposes, let’s intoduce you to Jean, who is a group plan member, currently
deciding when to start taking the CPP benefit as they are getting closer to
retirement.
If Jean decides to retire at age 65, she will likely
receive about $750 per month.If Jean retires five years earlier and decides
to start receiving the CPP, it will decrease to about $480 per month. That's
that 0.6% reduction that we were talking about.
Now if Jean pushes out receiving this benefit five
years until age 70, the benefit amount now increases to $1,065 per month.
When to start CPP or QPP requires careful
consideration. It’s important to consider your other sources of retirement
income, your health, expected longevity, your investment approach, and if you
have a spouse or common law partner, you will want to take into consideration
what they are doing.
Everyone’s situation is different, so when you decide
to take your CPP or QPP, is a personal
choice.
Slide 11 Old Age Security (OAS)
Table showing OAS details: starts at 65,
taxable, based on residency and income. Maximum monthly payment is $727.67 as
of January 2025.
Presenter:
We talked a lot about percentages, but let's add a
dollar value to show you the difference of those percentages. In this
example, for illustration purposes, let’s intoduce you to Jean, who is a group plan member, currently
deciding when to start taking the CPP benefit as they are getting closer to
retirement.
If Jean decides to retire at age 65, she will likely
receive about $750 per month.If Jean retires five years earlier and decides
to start receiving the CPP, it will decrease to about $480 per month. That's
that 0.6% reduction that we were talking about.
Now if Jean pushes out receiving this benefit five
years until age 70, the benefit amount now increases to $1,065 per month.
When to start CPP or QPP requires careful
consideration. It’s important to consider your other sources of retirement
income, your health, expected longevity, your investment approach, and if you
have a spouse or common law partner, you will want to take into consideration
what they are doing.
Everyone’s situation is different, so when you decide
to take your CPP or QPP, is a personal
choice.
Slide 12 When will I start receiving OAS?
Explains that OAS cannot start before 65.
Delaying to age 70 increases the benefit by 36%. Includes a visual timeline.
The slide also has an image of an old man fishing with his grandson.
Presenter:
You are not able to start receiving OAS before you’re
65. The latest you can start receiving OAS is at age 70.
Your benefit amount is increased by 0.6% for
each month you delay taking it after you’ve turned 65. If you take it
at 70, your benefit amount will be increased 36%.
Slide 13 OAS pension recovery tax (clawback)
Explains how high income can reduce OAS
benefits. Example shows a $93,000 income leading to a $300.45 annual
clawback. Includes a table with calculations.
Presenter:
Be aware that your total personal income can impact
your old age security benefit amount.
One difference between the CPP/QPP and OAS is that
the OAS benefit is subject to a recovery tax – often referred to as OAS
clawback.
The OAS clawback is taken when your net world income
(which is your net income from all sources both inside and outside of Canada)
is above a certain amount.
This tax amounts to 15% of the difference between the
OAS clawback threshold amount and your actual income.
Let'swork through this example where the annual
income from all sources was $93,000.
As we can see, that $93,000 is an amount that is above the minimum threshold
that is noted.
The amount of the recovery tax is applied only to the
amount that's above the minimum threshold. This calculates to $2,003.
Using the 15% recovery tax and the amount of $2,003,
we know that the old age security benefit in this example is going to
decrease by $345 in the next annual cycle.
Slide 14 Deciding when to take OAS – Example:
Sal
Example of Sal deciding when to take OAS. At
65, he gets $700/month; at 70, $952/month. Includes a photo of a man smiling
outdoors. The slide also has an image of an old man using a tablet.
Presenter:
Introducing Sal who needs to decide
when to start taking OAS.
At 65 he’s eligible for $700/month.
If Sal waits until 70, he’ll get
$952/month.
Unlike CPP/QPP, OAS can’t be taken before age 65.
Slide 15 [No Title]
Provides links to government websites where
users can estimate their CPP, QPP, and OAS benefits.
Presenter:
A good call to action for each of you joining us
today is is to see what you are on
track to receive.
What is the amount you are potentially going to
receive from the government benefits? For CPP and OAS, visit canada.ca and sign into your My Service Canada Account to
find an estimate of your monthly benefits.
For QPP, visit www.retraitequebec.gouv.qc.ca and sign into My Account to find an estimate
of your monthly benefit.
Slide 16 Guaranteed Income Supplement (GIS)
Table showing GIS amounts based on marital
status and income. Maximum benefit for a single person is $1,086.88/month.
GIS is non-taxable.
Presenter:
The third source of government retirement income is
called the Guaranteed Income Supplement – known as the GIS. It is an
additional OAS benefit and is not taxable.
You may qualify for this monthly payment if you are
65 or older, you live in Canada, you are receiving the OAS benefit and your
income is below the maximum annual income threshold based on your marital
status. The benefit amount is reviewed
quarterly and will reflect increases in the cost of living as measured by the
Consumer Price index. Your monthly payment amount will not decrease if the
cost of living goes down.
In many cases, The Canada Revenue Agency will let you
know by letter when you could start receiving the first payment and will be
sent out the month after you turn 64.
Your benefit amount is reviewed each year using your
income information from your federal income tax return which determines
whether you will continue to receive this supplement for the next year. Every
July, you will receive a letter providing you with information about your
payments.
For general questions about the GIS benefit or
specific questions about your application, call Service Canada at
1-800-277-9914.
Slide 17 How to start receiving benefits
Instructions for applying for CPP, QPP, OAS,
and GIS. Includes timelines and application methods (online or by mail).
Presenter: If you are approaching
retirement, it will helpful for you to know how to start
receiving these benefits. Starting at
the top with the Canada Pension Plan. To apply online, you will go to Canada
ca
You'll log
into your access account which is called My Service Canada Account. If you
have not signed in or registered for this service with canada.ca, it should
take you about 15 minutes. If you do
not currently have a personal identification number with the Canada Revenue
Agency, you will need your last tax return as the information within your tax
return will be used to verify your identity.
Moving on,
we have the QPP where you can aslo apply online. You're going to go to the
site that we're noting here and you're going to log in using your
credentials.
For the old
age Security and the guaranteed income supplement, in most cases, Service
Canada is automatically going to enroll you for the old age security and the
guaranteed income supplement benefit, based on your elegibility.
Slide 18 Turning registered savings into
income
Title slide introducing the section on
converting savings into retirement income.
Presenter: You’'' spend years building
your nest egg—contributing to RRSPs, TFSAs, maybe even a LIRA or pension
plan. But now comes the big question: how do you turn those savings into
steady, reliable income for retirement?
Slide 19 Registered retirement savings –
Overview
Explains different types of registered
savings: RRSP, DPSP, RPP. Notes that accounts must be converted by age 71.
Includes a diagram of income sources.
Presenter:
Saving in registered accounts is one of the best ways
you can save for retirement. It’s because they have special tax treatment –
like tax-sheltered investment growth and deferred income taxes – that can
make saving easier.
Registered retirement savings plans, RRSPs, are the only regstered account type
designed specifically for retirement that can be part of both your group
savings or personal savings.
Registered pension plans and deferred profit sharing
plans are only available through group plans, and only if they’re a part of
your plan design.
No matter which retirement account you have, there’s
a key rule:
By the end of the year you turn 71, you must convert your RRSP, RPP, or DPSP into an
income plan—like a RRIF or annuity—so you can start drawing income from it.
There’s no
minimum age to start using RRSPs or DPSPs.
For RPPs, you
usually can’t start withdrawing until you’re at least 55. In some
juridications you may be able to start as early as 50.
Tax Free Savings Account can be used for retirement too, but they’re
more flexible. You can open one on your own or through a group plan (if
available), and there’s no age limit or requirement to turn it into
income later. That’s why we’re not focusing on them here—they’re for all
kinds of savings, not just retirement.
Slide 20 Registered retirement savings − Your
conversion options
Outlines options for converting savings:
RRIF, LIF, or annuity. Categorizes them as flexible or guaranteed income.
Presenter: By the time you’re 71, you’ll
need to decide what type of product you want to convert your registered
retirement savings accounts into.
Regaredless of
the type of plan you may have , your options fall into two categories – registered accounts that provide you with
income withdrawal options that are more flexible, or annuities, which provide
you with less flexibility but the amount you receive will be guaranteed.
Next, we’ll take a closer look at each of these
options.
Slide 21 Flexible income options
Details RRIF and LIF features: investment
control, withdrawal rules, and lump sum options. RRIFs allow full withdrawal;
LIFs have limits.
Presenter:
A RRIF, which stands for a Registered Retirement
Income Fund
•
Holds money from an RRSP or
DPSP
•
You choose the investments
•
They are subject to minimum
withdrawals, set by the government
•
You can withdraw all the
funds at anytime
A LIF is a Life Income Fund and
•
Holds money from an RPP
•
You choose the investments
•
LIFs are subject to minimum
and maximum withdrawal rules, set by the government
•
You may have the option to
unlock a lump sum at the time of conversion
Slide 22 How your RRIF or LIF income is
determined
Explains that income is based on age, plan
value, and government-set payment factors. Includes a visual of a calculator
and documents. The slide also has an image of an old man hugging his
granddaughter.
Presenter: According to government
legislation, you must receive a minimum payment from your RRIF or LIF after
the first year the plan is purchased.
The payment amount you receive is based on:
•
Your age, or in some cases
your spouse's age
•
The plan value at the
beginning of each year
•
The applicable payment factor
Slide 23 Get your retirement income payment
factors on My Canada Life at Work
Instructions for accessing payment factor
information on the Canada Life website. Includes a screenshot of the site.
Presenter:
You are encouraged to log in to your account at mycanadalifeatwork.com, Canada Life’s membersite, where you can select Info centre to access our
Learning centre to view the current minimum and maximum payment factors.
Slide 24 RRIF and LIF income example
Example of Mary with $550,000 in savings.
Shows minimum and maximum withdrawals from RRIF and LIF. Includes a table and
photo of Mary. The slide also has an image of a woman smiling.
Presenter: Meet Mary who is turning her
retirment saivngs into income.
Mary lives in
Ontario and has done a great job saving for retirement. She’s built up $550,000
in registered retirement accounts:
·
$50,000 in an RRSP
·
$500,000 in an RPP
Now that she’s retiring,
it’s time to turn those savings into income she can use.
Mary converted
her $50,000 RRSP into a Registered Retirement Income Fund (RRIF).
·
Minimum withdrawal: $2,000 per
year
·
Maximum withdrawal: There’s no
cap—she could withdraw the full $50,000 if she wanted (though that could
trigger a big tax bill!)
Her $500,000
RPP is now providing retirement income.
·
Minimum withdrawal: $20,000 per
year
·
Maximum withdrawal: $36,899 per
year
While Mary has
options, how much she withdraws—and when—can have a big impact on her
taxes and how long her savings last.
That’s why it’s
so important to work with a financial advisor or tax professional.
They can help:
·
Create a withdrawal plan that minimizes taxes
·
Make sure her money lasts through retirement
Adjust her plan as her needs or the market change.
Slide 25 New rules for Quebec LIFs
Explains that as of January 2025, Quebec LIFs
have no maximum withdrawal limit starting at age 55. Includes a visual of Quebec
city.
Presenter:
Staring January 1, 2025 new rules were announced for
LIF account in Quebec.
If you’re 55
or older, here’s the big change:
You can now withdraw
as much as you want from your LIF.There’s still a minimum amount
you must take out each year, but the maximum limit is gone. That means
more flexibility to use your money when and how you need it.
But remember—just
because you can take it all out doesn’t mean you should. Large
withdrawals could lead to higher taxes or even reduce how long your savings
last.
If you’re under
55, the rules are also more flexible. You can still take out money, and
the formulas for how much you can withdraw have been simplified.
These changes provideu more control over your
retirement income—but they also mean you need to plan carefully.
Slide 26 Guaranteed income option
Describes annuities: insurance products that
provide guaranteed income. Lists types: single life, joint life, and term.
Presenter:
An annuity is a guaranteed income option.
It’s not an investment account; it’s an insurance
product you buy from an insurance company.
You can buy an annuity using any savings you have,
including money in an RRSP, DPSP or RPP.
In exchange for your payment, an annuity will give
you a guaranteed income for the rest of your life or until the end of its
term.
Annuities can be purchased in different formats that
includes:
•
Single life
•
Joint life
•
Term
Slide 27 Annuity example
Shows how annuity income varies by type.
Example uses $100,000 purchase amount. Includes a table comparing monthly
payments.
Presenter:
The income you receive is based on:
•
The type of annuity purchased
•
The amount of your lump-sum
payment
•
Your age and in some cases your
spouse’s age
•
Interest rates at the time of
your payment
•
Your Sex at birth
Since this is only an example, the exact numbers
shown won’t apply to you. This example demonstrates how different annuity
options impact the amount you receive.
For the same purchase amount of $100,000 – a single
life annuity will pay a significantly higher amount than a joint-life
annuity.
You’ll notice as well that a joint-life annuity that
reduces upon the annuitant’s death will pay a higher monthly amount than an
annuity where the monthly amount remains constant.
Finally, the longer the guarantee period, the lower
the monthly payment
Slide 28 Let’s review and compare
Comparison table of RRIFs/LIFs vs. annuities.
Covers income flexibility, taxation, and estate planning.
Presenter:
Now that we’ve
covered the different ways to turn your savings into income, let’s take a
moment to review and compare your options.
If you're
looking for flexibility, your main tools are the RRIF (Registered Retirement
Income Fund) and the LIF (Life Income Fund). These accounts let
you control how much income you take out each year—within certain limits.
If you prefer guaranteed
income, an annuity might be a better fit. It provides a steady,
predictable income for life or a set period. And remember—you don’t have
to choose just one. Many people use a mix of both flexible and guaranteed
income sources to meet their needs.
What about
taxes?
When you withdraw money from a RRIF
or LIF, that income is taxable.
Now, one common question we hear
is:
“If I move money from my RRSP to
a RRIF, do I pay tax right away?”
The answer is no. That
transfer is tax-sheltered, meaning you don’t pay tax when you move the
money.
You only pay tax on the amount
you withdraw from the RRIF or LIF.
With annuities, the income
you receive is also taxable, depending on how the annuity is
structured.
We won’t go into too much detail on Estate planning, but it’s worth noting:
If you don’t use all the money in your RRIF or LIF, the remaining
balance can go to your beneficiary or your estate, depending on
your plan setup.
Slide 29 Let’s review and compare (continued)
Continues comparison: how each option
performs in strong and weak markets. RRIFs/LIFs are market-sensitive;
annuities are not.
Presenter: Let’s talk about what happens
when the markets are doing well—and when they’re not—especially in
retirement.
We all enjoy strong markets. If you have a RRIF
or LIF, the value of your investments can grow—depending on what you’ve
invested in. That growth means you’ll likely have more savings to
draw from, giving you flexibility and the chance to adjust your
investments to take advantage of new opportunities.
Managing your investments during retirement is
important, and staying engaged with your strategy can help your savings go
further.
Now, what about annuities?
With an annuity, your payments are fixed.
They don’t change based on market performance or interest rates. So even if
markets go up, your income stays the same. You might miss out on some growth
opportunities, but you also avoid the risk.
Unfortunately, markets don’t stay strong forever—they
move in cycles.
With RRIFs and LIFs, your savings are exposed
to market ups and downs. If the market drops, the value of your investments
may fall, which could mean less income in retirement.
But again, you have control over your investments,
which many people see as a benefit.
With an annuity, your income is not
affected by market declines. Once you’ve purchased it, your payments
are locked in. That stability can be reassuring during market downturns.
Slide 30 Steps to start receiving income from
your group savings plan
Outlines four steps: review options, make
selections, confirm decisions, and start receiving income. Includes a
checklist graphic.
Presenter: When you retire, your
employer will let Canada Life know. From there, things are
simple and smooth:
Watch for Your Welcome Package
Canada Life will send
you a personalized package with all your retirement income options.
Review Your Statement of Options
Take a look at what’s
available to you—this is your chance to shape your retirement income.
Make Your Selections
Choose the options that
best fit your lifestyle, goals, and future plans.
Confirm Your Decisions
Once you’re ready, lock
in your choices and send them back.
Start Receiving Your Retirement Income
Sit back and enjoy the
rewards of your hard work—your income will start flowing in!
Slide 31 Do you have savings in a TFSA?
Explains that TFSAs are flexible, tax-free,
and don’t require conversion. Can be used for retirement or other savings.
Presenter: TFSAs: A Flexible Tool for
Retirement—and Beyond
Think of a TFSA as your all-purpose savings sidekick.
It’s not just for retirement—it can help you save for
anything, from a dream vacation to a rainy-day fund. But it also plays a
valuable role in your retirement income strategy.
Unlike RRSPs, you don’t have to convert your TFSA
when you retire. You can keep it going for as long as you like. Your money can remain invested and growing, even during
retirement.
Since you’ve already paid tax on the money you
contribute, you can withdraw it tax-free—and even put it back in
the following year.
This makes TFSAs a great option for unexpected
expenses or topping up your retirement income.
You can open a TFSA on your own, or through your
group plan, if it’s offered
Slide 32 Resources
Title slide introducing the resources
section.
Presenter:
To help you get a clear picture of your future
income, there are some excellent tools and resources available. These can
show you what to expect, how to plan, and how to make the most of every
dollar in retirement.
Let’s take a look at some of the most helpful
resources available
Slide 33 Canadian Retirement Income
Calculator
Describes a free government tool for
estimating retirement income. Allows customization for income sources, life
expectancy, and part-time work. The slide also has a screenshot of the tool
on the government of Canada website.
Presenter:
The Canadian Retirement Income Calculator is
•
A free tool on the government
of Canada website that provides retirement income information and estimates.
•
You can include income from
all three income sources in your calculations.
•
You can also adjust your life
expectancy, rate of return and add in extra part-time income.
Slide 34 Not sure how much to save?
Promotes the Retirement Goal tool on My
Canada Life at Work. Helps users calculate monthly savings needed to meet
retirement goals. The slide also has a screenshot of My Canada Life at Work
page.
Presenter:
If you’re not sure how much to save, sign into My
Canada Life at Work and use the Retirement goal tool. It’s a
simpler version of the last calculator we reviewed.
It can help you figure out how much you need to save
each month to reach your retirement income goals.
Be sure to update it as things change – like your
income, the amount you’re saving or the future income you’d like to receive.
Slide 35 Questions?
Closing slide with contact information for Canada Life. Encourages
attendees to use available resources and tools to plan for retirement.
Presenter: Your group plan plays a big role in helping you achieve the financial goals you have set for yourself and your retirement lifestyle. If you need further assistance, please reach out to us at Canada Life for help with your plan. Thank you very much for joining session and best wishes with your wealth building journey!
Slide 1 Retirement – Where will my money come from?
Welcome slide introducing the webinar. The background includes a photo of an older woman looking outside her window.
Presenter: Hello and welcome to this information session for you members of Group Plans here at Canada Life. Our session today is all about the three pillars of retirement income for Canadians. Our goal, is to provide you information that will help you better understand how government benefits, employer sponsored retirement savings plans ,and your personal savings can work together to provide you support during your retirement years.
Slide 2 [No Title]
Instructions for participants: Canada Life consultants
are available to answer questions via the chat function during the webinar.
Presenter:
Slide 3 Where do unretired Canadians think
their retirement income will come from?
Bar chart showing survey results from
unretired Canadians. Top sources include CPP/QPP, OAS, RRSPs, TFSAs, and
continuing to work. Lesser sources include home sales, rental income, and
crypto.
Presenter:
When you think ahead to your retirement, where do you
you think your income will come from? A recent survey commissioned by the
Healthcare of Ontario Pension plan asked unretired Canadians that question
and here are the results. Respondents were asked to select all the income
sources that applied to them.
Slide 4 Income sources – Working years vs. in
retirement
Diagram comparing income sources during
working years (employment income) versus retirement (government benefits,
group savings, personal savings). Visual shows income sources shifting over
time.
Presenter:
The survey results demonstrate that there are many
potential income sources in retirement. All these different sources can be
put into three main categories – Government retirement benefits,
employer-sponsored plans, also known as group
plans, and personal savings.
If you plan to keep working part-time in retirement,
like many Canadians do, earned income could also be included in your
retirement income sources, but to a lesser degree.
Slide 5 Agenda
Outlines the session’s focus: government
retirement benefits, turning registered savings into income, and available
resources. Background image shows an old couple smiling.
Presenter:
Today you are going to learn more about government
retirement benefits, how you can convert your collective employer sponsor
plan, your personal savings that you've accumulated over the years and turn
it into retirement income.
We're going to end our time focusing on the tools and
the resources available at Canolife to help you determine the income you
could receive in retirement.
Slide 6 Government retirement benefits
Title slide introducing the section on
government retirement benefits.
Presenter: Since each of you joining us today are at different stages
in your life and perhaps in your savings journey, let's just take a moment to
level set.
We're going to start with a review all of the
government benefits in more detail.
Slide 7 Types of government retirement
benefits
Lists three types: Guaranteed Income
Supplement (GIS), Old Age Security (OAS), and Canada/Quebec Pension Plans
(CPP/QPP). Notes that enhanced CPP/QPP aims to replace one-third of average
work earnings.
Presenter:
The three sources of government benefits you may be
eligible to receive are the Canada Pension Plan, known as CPP and the Quebec
Pension Plan – the QPP, for those joining us who reside in Quebec.
We then have Old Age Security, more commonly known as
OAS, as well as the potential to receive GIS, which is the guaranteed income
supplement.
Slide 8 Canada Pension Plan (CPP) and Quebec
Pension Plan (QPP)
Table explaining when benefits start (age
60–70 for CPP, up to 72 for QPP), taxation (yes), and how benefit amounts are
calculated. Maximum monthly payment at age 65 is $1,433 as of January 2025.
Presenter:
The Canada Pension Plan – CPP – is a contributory
public pension plan that provides a basic level of income in retirement for
workers throughout Canada – except for Quebec. Workers in Quebec are
covered by the Quebec Pension Plan – QPP – which provides similar
benefits. These both are taxable benefits and are reviewed annually.
The amount you will receive from these benefits
depends on a few things:
- your average earnings throughout your working life,
- how much and for how long you’ve contributed to
CPP/QPP while working,
- and the age you decide to start receiving
your benefit.
Understanding what you’ll receive and when it makes
sense - for you - to start receiving these benefits can make a big difference
as you plan for your retirement and your anticipated retirement
income.
We encourage you to
confirm your individual estimates of your monthly CPP/QPP
retirement amount by logging into your My Service Canada Account. If you are
going to be receiving QPP you can request a statement through My Account with
Retraite Quebec.
Slide 9 When will I start receiving CPP or
QPP?
Explains how starting earlier or later than
age 65 affects benefit amounts. Includes a chart showing reductions for early
start and increases for delayed start. The slide also shows an image of an
old couple dancing together.
Presenter:
The standard age to recieve these benefits is 65.You
can choose to start receiving it sooner or later but if you do, it will
change the amount you receive.
The soonest you can start receiving CPP or QPP is at
age 60. Your benefit amount is reduced by 0.6% for each month you take
it before age 65.
The latest you can start receiving CPP is at age 70
and for QPP age 72. Your benefit amount is increased by 0.7% for each
month you delay taking it after you’ve turned 65.
Slide 10 Deciding when to take CPP – Example:
Jean
Example of Jean deciding when to take CPP. At
60, she gets $480/month; at 65, $750; at 70, $1,065. Includes a photo of a
smiling woman doing pottery.
Presenter:
We talked a lot about percentages, but let's add a
dollar value to show you the difference of those percentages. In this
example, for illustration purposes, let’s intoduce you to Jean, who is a group plan member, currently
deciding when to start taking the CPP benefit as they are getting closer to
retirement.
If Jean decides to retire at age 65, she will likely
receive about $750 per month.If Jean retires five years earlier and decides
to start receiving the CPP, it will decrease to about $480 per month. That's
that 0.6% reduction that we were talking about.
Now if Jean pushes out receiving this benefit five
years until age 70, the benefit amount now increases to $1,065 per month.
When to start CPP or QPP requires careful
consideration. It’s important to consider your other sources of retirement
income, your health, expected longevity, your investment approach, and if you
have a spouse or common law partner, you will want to take into consideration
what they are doing.
Everyone’s situation is different, so when you decide
to take your CPP or QPP, is a personal
choice.
Slide 11 Old Age Security (OAS)
Table showing OAS details: starts at 65,
taxable, based on residency and income. Maximum monthly payment is $727.67 as
of January 2025.
Presenter:
We talked a lot about percentages, but let's add a
dollar value to show you the difference of those percentages. In this
example, for illustration purposes, let’s intoduce you to Jean, who is a group plan member, currently
deciding when to start taking the CPP benefit as they are getting closer to
retirement.
If Jean decides to retire at age 65, she will likely
receive about $750 per month.If Jean retires five years earlier and decides
to start receiving the CPP, it will decrease to about $480 per month. That's
that 0.6% reduction that we were talking about.
Now if Jean pushes out receiving this benefit five
years until age 70, the benefit amount now increases to $1,065 per month.
When to start CPP or QPP requires careful
consideration. It’s important to consider your other sources of retirement
income, your health, expected longevity, your investment approach, and if you
have a spouse or common law partner, you will want to take into consideration
what they are doing.
Everyone’s situation is different, so when you decide
to take your CPP or QPP, is a personal
choice.
Slide 12 When will I start receiving OAS?
Explains that OAS cannot start before 65.
Delaying to age 70 increases the benefit by 36%. Includes a visual timeline.
The slide also has an image of an old man fishing with his grandson.
Presenter:
You are not able to start receiving OAS before you’re
65. The latest you can start receiving OAS is at age 70.
Your benefit amount is increased by 0.6% for
each month you delay taking it after you’ve turned 65. If you take it
at 70, your benefit amount will be increased 36%.
Slide 13 OAS pension recovery tax (clawback)
Explains how high income can reduce OAS
benefits. Example shows a $93,000 income leading to a $300.45 annual
clawback. Includes a table with calculations.
Presenter:
Be aware that your total personal income can impact
your old age security benefit amount.
One difference between the CPP/QPP and OAS is that
the OAS benefit is subject to a recovery tax – often referred to as OAS
clawback.
The OAS clawback is taken when your net world income
(which is your net income from all sources both inside and outside of Canada)
is above a certain amount.
This tax amounts to 15% of the difference between the
OAS clawback threshold amount and your actual income.
Let'swork through this example where the annual
income from all sources was $93,000.
As we can see, that $93,000 is an amount that is above the minimum threshold
that is noted.
The amount of the recovery tax is applied only to the
amount that's above the minimum threshold. This calculates to $2,003.
Using the 15% recovery tax and the amount of $2,003,
we know that the old age security benefit in this example is going to
decrease by $345 in the next annual cycle.
Slide 14 Deciding when to take OAS – Example:
Sal
Example of Sal deciding when to take OAS. At
65, he gets $700/month; at 70, $952/month. Includes a photo of a man smiling
outdoors. The slide also has an image of an old man using a tablet.
Presenter:
Introducing Sal who needs to decide
when to start taking OAS.
At 65 he’s eligible for $700/month.
If Sal waits until 70, he’ll get
$952/month.
Unlike CPP/QPP, OAS can’t be taken before age 65.
Slide 15 [No Title]
Provides links to government websites where
users can estimate their CPP, QPP, and OAS benefits.
Presenter:
A good call to action for each of you joining us
today is is to see what you are on
track to receive.
What is the amount you are potentially going to
receive from the government benefits? For CPP and OAS, visit canada.ca and sign into your My Service Canada Account to
find an estimate of your monthly benefits.
For QPP, visit www.retraitequebec.gouv.qc.ca and sign into My Account to find an estimate
of your monthly benefit.
Slide 16 Guaranteed Income Supplement (GIS)
Table showing GIS amounts based on marital
status and income. Maximum benefit for a single person is $1,086.88/month.
GIS is non-taxable.
Presenter:
The third source of government retirement income is
called the Guaranteed Income Supplement – known as the GIS. It is an
additional OAS benefit and is not taxable.
You may qualify for this monthly payment if you are
65 or older, you live in Canada, you are receiving the OAS benefit and your
income is below the maximum annual income threshold based on your marital
status. The benefit amount is reviewed
quarterly and will reflect increases in the cost of living as measured by the
Consumer Price index. Your monthly payment amount will not decrease if the
cost of living goes down.
In many cases, The Canada Revenue Agency will let you
know by letter when you could start receiving the first payment and will be
sent out the month after you turn 64.
Your benefit amount is reviewed each year using your
income information from your federal income tax return which determines
whether you will continue to receive this supplement for the next year. Every
July, you will receive a letter providing you with information about your
payments.
For general questions about the GIS benefit or
specific questions about your application, call Service Canada at
1-800-277-9914.
Slide 17 How to start receiving benefits
Instructions for applying for CPP, QPP, OAS,
and GIS. Includes timelines and application methods (online or by mail).
Presenter: If you are approaching
retirement, it will helpful for you to know how to start
receiving these benefits. Starting at
the top with the Canada Pension Plan. To apply online, you will go to Canada
ca
You'll log
into your access account which is called My Service Canada Account. If you
have not signed in or registered for this service with canada.ca, it should
take you about 15 minutes. If you do
not currently have a personal identification number with the Canada Revenue
Agency, you will need your last tax return as the information within your tax
return will be used to verify your identity.
Moving on,
we have the QPP where you can aslo apply online. You're going to go to the
site that we're noting here and you're going to log in using your
credentials.
For the old
age Security and the guaranteed income supplement, in most cases, Service
Canada is automatically going to enroll you for the old age security and the
guaranteed income supplement benefit, based on your elegibility.
Slide 18 Turning registered savings into
income
Title slide introducing the section on
converting savings into retirement income.
Presenter: You’'' spend years building
your nest egg—contributing to RRSPs, TFSAs, maybe even a LIRA or pension
plan. But now comes the big question: how do you turn those savings into
steady, reliable income for retirement?
Slide 19 Registered retirement savings –
Overview
Explains different types of registered
savings: RRSP, DPSP, RPP. Notes that accounts must be converted by age 71.
Includes a diagram of income sources.
Presenter:
Saving in registered accounts is one of the best ways
you can save for retirement. It’s because they have special tax treatment –
like tax-sheltered investment growth and deferred income taxes – that can
make saving easier.
Registered retirement savings plans, RRSPs, are the only regstered account type
designed specifically for retirement that can be part of both your group
savings or personal savings.
Registered pension plans and deferred profit sharing
plans are only available through group plans, and only if they’re a part of
your plan design.
No matter which retirement account you have, there’s
a key rule:
By the end of the year you turn 71, you must convert your RRSP, RPP, or DPSP into an
income plan—like a RRIF or annuity—so you can start drawing income from it.
There’s no
minimum age to start using RRSPs or DPSPs.
For RPPs, you
usually can’t start withdrawing until you’re at least 55. In some
juridications you may be able to start as early as 50.
Tax Free Savings Account can be used for retirement too, but they’re
more flexible. You can open one on your own or through a group plan (if
available), and there’s no age limit or requirement to turn it into
income later. That’s why we’re not focusing on them here—they’re for all
kinds of savings, not just retirement.
Slide 20 Registered retirement savings − Your
conversion options
Outlines options for converting savings:
RRIF, LIF, or annuity. Categorizes them as flexible or guaranteed income.
Presenter: By the time you’re 71, you’ll
need to decide what type of product you want to convert your registered
retirement savings accounts into.
Regaredless of
the type of plan you may have , your options fall into two categories – registered accounts that provide you with
income withdrawal options that are more flexible, or annuities, which provide
you with less flexibility but the amount you receive will be guaranteed.
Next, we’ll take a closer look at each of these
options.
Slide 21 Flexible income options
Details RRIF and LIF features: investment
control, withdrawal rules, and lump sum options. RRIFs allow full withdrawal;
LIFs have limits.
Presenter:
A RRIF, which stands for a Registered Retirement
Income Fund
•
Holds money from an RRSP or
DPSP
•
You choose the investments
•
They are subject to minimum
withdrawals, set by the government
•
You can withdraw all the
funds at anytime
A LIF is a Life Income Fund and
•
Holds money from an RPP
•
You choose the investments
•
LIFs are subject to minimum
and maximum withdrawal rules, set by the government
•
You may have the option to
unlock a lump sum at the time of conversion
Slide 22 How your RRIF or LIF income is
determined
Explains that income is based on age, plan
value, and government-set payment factors. Includes a visual of a calculator
and documents. The slide also has an image of an old man hugging his
granddaughter.
Presenter: According to government
legislation, you must receive a minimum payment from your RRIF or LIF after
the first year the plan is purchased.
The payment amount you receive is based on:
•
Your age, or in some cases
your spouse's age
•
The plan value at the
beginning of each year
•
The applicable payment factor
Slide 23 Get your retirement income payment
factors on My Canada Life at Work
Instructions for accessing payment factor
information on the Canada Life website. Includes a screenshot of the site.
Presenter:
You are encouraged to log in to your account at mycanadalifeatwork.com, Canada Life’s membersite, where you can select Info centre to access our
Learning centre to view the current minimum and maximum payment factors.
Slide 24 RRIF and LIF income example
Example of Mary with $550,000 in savings.
Shows minimum and maximum withdrawals from RRIF and LIF. Includes a table and
photo of Mary. The slide also has an image of a woman smiling.
Presenter: Meet Mary who is turning her
retirment saivngs into income.
Mary lives in
Ontario and has done a great job saving for retirement. She’s built up $550,000
in registered retirement accounts:
·
$50,000 in an RRSP
·
$500,000 in an RPP
Now that she’s retiring,
it’s time to turn those savings into income she can use.
Mary converted
her $50,000 RRSP into a Registered Retirement Income Fund (RRIF).
·
Minimum withdrawal: $2,000 per
year
·
Maximum withdrawal: There’s no
cap—she could withdraw the full $50,000 if she wanted (though that could
trigger a big tax bill!)
Her $500,000
RPP is now providing retirement income.
·
Minimum withdrawal: $20,000 per
year
·
Maximum withdrawal: $36,899 per
year
While Mary has
options, how much she withdraws—and when—can have a big impact on her
taxes and how long her savings last.
That’s why it’s
so important to work with a financial advisor or tax professional.
They can help:
·
Create a withdrawal plan that minimizes taxes
·
Make sure her money lasts through retirement
Adjust her plan as her needs or the market change.
Slide 25 New rules for Quebec LIFs
Explains that as of January 2025, Quebec LIFs
have no maximum withdrawal limit starting at age 55. Includes a visual of Quebec
city.
Presenter:
Staring January 1, 2025 new rules were announced for
LIF account in Quebec.
If you’re 55
or older, here’s the big change:
You can now withdraw
as much as you want from your LIF.There’s still a minimum amount
you must take out each year, but the maximum limit is gone. That means
more flexibility to use your money when and how you need it.
But remember—just
because you can take it all out doesn’t mean you should. Large
withdrawals could lead to higher taxes or even reduce how long your savings
last.
If you’re under
55, the rules are also more flexible. You can still take out money, and
the formulas for how much you can withdraw have been simplified.
These changes provideu more control over your
retirement income—but they also mean you need to plan carefully.
Slide 26 Guaranteed income option
Describes annuities: insurance products that
provide guaranteed income. Lists types: single life, joint life, and term.
Presenter:
An annuity is a guaranteed income option.
It’s not an investment account; it’s an insurance
product you buy from an insurance company.
You can buy an annuity using any savings you have,
including money in an RRSP, DPSP or RPP.
In exchange for your payment, an annuity will give
you a guaranteed income for the rest of your life or until the end of its
term.
Annuities can be purchased in different formats that
includes:
•
Single life
•
Joint life
•
Term
Slide 27 Annuity example
Shows how annuity income varies by type.
Example uses $100,000 purchase amount. Includes a table comparing monthly
payments.
Presenter:
The income you receive is based on:
•
The type of annuity purchased
•
The amount of your lump-sum
payment
•
Your age and in some cases your
spouse’s age
•
Interest rates at the time of
your payment
•
Your Sex at birth
Since this is only an example, the exact numbers
shown won’t apply to you. This example demonstrates how different annuity
options impact the amount you receive.
For the same purchase amount of $100,000 – a single
life annuity will pay a significantly higher amount than a joint-life
annuity.
You’ll notice as well that a joint-life annuity that
reduces upon the annuitant’s death will pay a higher monthly amount than an
annuity where the monthly amount remains constant.
Finally, the longer the guarantee period, the lower
the monthly payment
Slide 28 Let’s review and compare
Comparison table of RRIFs/LIFs vs. annuities.
Covers income flexibility, taxation, and estate planning.
Presenter:
Now that we’ve
covered the different ways to turn your savings into income, let’s take a
moment to review and compare your options.
If you're
looking for flexibility, your main tools are the RRIF (Registered Retirement
Income Fund) and the LIF (Life Income Fund). These accounts let
you control how much income you take out each year—within certain limits.
If you prefer guaranteed
income, an annuity might be a better fit. It provides a steady,
predictable income for life or a set period. And remember—you don’t have
to choose just one. Many people use a mix of both flexible and guaranteed
income sources to meet their needs.
What about
taxes?
When you withdraw money from a RRIF
or LIF, that income is taxable.
Now, one common question we hear
is:
“If I move money from my RRSP to
a RRIF, do I pay tax right away?”
The answer is no. That
transfer is tax-sheltered, meaning you don’t pay tax when you move the
money.
You only pay tax on the amount
you withdraw from the RRIF or LIF.
With annuities, the income
you receive is also taxable, depending on how the annuity is
structured.
We won’t go into too much detail on Estate planning, but it’s worth noting:
If you don’t use all the money in your RRIF or LIF, the remaining
balance can go to your beneficiary or your estate, depending on
your plan setup.
Slide 29 Let’s review and compare (continued)
Continues comparison: how each option
performs in strong and weak markets. RRIFs/LIFs are market-sensitive;
annuities are not.
Presenter: Let’s talk about what happens
when the markets are doing well—and when they’re not—especially in
retirement.
We all enjoy strong markets. If you have a RRIF
or LIF, the value of your investments can grow—depending on what you’ve
invested in. That growth means you’ll likely have more savings to
draw from, giving you flexibility and the chance to adjust your
investments to take advantage of new opportunities.
Managing your investments during retirement is
important, and staying engaged with your strategy can help your savings go
further.
Now, what about annuities?
With an annuity, your payments are fixed.
They don’t change based on market performance or interest rates. So even if
markets go up, your income stays the same. You might miss out on some growth
opportunities, but you also avoid the risk.
Unfortunately, markets don’t stay strong forever—they
move in cycles.
With RRIFs and LIFs, your savings are exposed
to market ups and downs. If the market drops, the value of your investments
may fall, which could mean less income in retirement.
But again, you have control over your investments,
which many people see as a benefit.
With an annuity, your income is not
affected by market declines. Once you’ve purchased it, your payments
are locked in. That stability can be reassuring during market downturns.
Slide 30 Steps to start receiving income from
your group savings plan
Outlines four steps: review options, make
selections, confirm decisions, and start receiving income. Includes a
checklist graphic.
Presenter: When you retire, your
employer will let Canada Life know. From there, things are
simple and smooth:
Watch for Your Welcome Package
Canada Life will send
you a personalized package with all your retirement income options.
Review Your Statement of Options
Take a look at what’s
available to you—this is your chance to shape your retirement income.
Make Your Selections
Choose the options that
best fit your lifestyle, goals, and future plans.
Confirm Your Decisions
Once you’re ready, lock
in your choices and send them back.
Start Receiving Your Retirement Income
Sit back and enjoy the
rewards of your hard work—your income will start flowing in!
Slide 31 Do you have savings in a TFSA?
Explains that TFSAs are flexible, tax-free,
and don’t require conversion. Can be used for retirement or other savings.
Presenter: TFSAs: A Flexible Tool for
Retirement—and Beyond
Think of a TFSA as your all-purpose savings sidekick.
It’s not just for retirement—it can help you save for
anything, from a dream vacation to a rainy-day fund. But it also plays a
valuable role in your retirement income strategy.
Unlike RRSPs, you don’t have to convert your TFSA
when you retire. You can keep it going for as long as you like. Your money can remain invested and growing, even during
retirement.
Since you’ve already paid tax on the money you
contribute, you can withdraw it tax-free—and even put it back in
the following year.
This makes TFSAs a great option for unexpected
expenses or topping up your retirement income.
You can open a TFSA on your own, or through your
group plan, if it’s offered
Slide 32 Resources
Title slide introducing the resources
section.
Presenter:
To help you get a clear picture of your future
income, there are some excellent tools and resources available. These can
show you what to expect, how to plan, and how to make the most of every
dollar in retirement.
Let’s take a look at some of the most helpful
resources available
Slide 33 Canadian Retirement Income
Calculator
Describes a free government tool for
estimating retirement income. Allows customization for income sources, life
expectancy, and part-time work. The slide also has a screenshot of the tool
on the government of Canada website.
Presenter:
The Canadian Retirement Income Calculator is
•
A free tool on the government
of Canada website that provides retirement income information and estimates.
•
You can include income from
all three income sources in your calculations.
•
You can also adjust your life
expectancy, rate of return and add in extra part-time income.
Slide 34 Not sure how much to save?
Promotes the Retirement Goal tool on My
Canada Life at Work. Helps users calculate monthly savings needed to meet
retirement goals. The slide also has a screenshot of My Canada Life at Work
page.
Presenter:
If you’re not sure how much to save, sign into My
Canada Life at Work and use the Retirement goal tool. It’s a
simpler version of the last calculator we reviewed.
It can help you figure out how much you need to save
each month to reach your retirement income goals.
Be sure to update it as things change – like your
income, the amount you’re saving or the future income you’d like to receive.
Slide 35 Questions?
Closing slide with contact information for Canada Life. Encourages
attendees to use available resources and tools to plan for retirement.
Presenter: Your group plan plays a big role in helping you achieve the financial goals you have set for yourself and your retirement lifestyle. If you need further assistance, please reach out to us at Canada Life for help with your plan. Thank you very much for joining session and best wishes with your wealth building journey!