Monthly retirement income estimates on mysunlife.ca

March 31, 2014

Last fall, we updated the Retirement Planner tool to include a Retirement income tab - a first step in changing the retirement conversation from "How much do I need to save?" to "How much income will I have in retirement?"

In the coming months, we will be bringing this information to the surface on mysunlife.ca so members can get a clearer picture of what they will have to live on in retirement without having to access the Retirement Planner. We are also introducing an industry first in Canada - an income replacement rate to provide an even easier measure of their progress towards their retirement goals.

For plan sponsors - we will be unveiling a new "Upload a salary file" function on the Plan Sponsor website to enable plan sponsors to provide a more enriched experience for their plan members.

What's changing:

In May/June, we are making the following changes.
  What's changing Who it impacts
my financial centre

A new "Will I have enough to retire?" income view that provides:

  • Estimated monthly retirement income
  • Income replacement rate
  • Bar graph to show their progress towards their retirement goal.

This will replace the current "My retirement plan" savings view.

This information will be updated in real-time based on what the member inputs into the Retirement Planner.

All plan members who currently have access to the Retirement Planner.

All plan members will see this new information, even if they haven't completed the Retirement Planner.


  What's changing Who it impacts

my money tools -> my retirement plan

You can also access it by clicking on the "my retirement plan" link from my financial centre

New page that provides:

  • A more detailed breakdown of the estimated monthly retirement income and income replacement rate
  • Calls to action with links to the Retirement Planner and the "Make a change" page.

This information will be updated in real-time based on what the member inputs into the Retirement Planner.

All plan members who currently have access to the Retirement Planner.

All plan members will see this new page, even if they haven't completed the Retirement Planner.

 


 

Why are we making these changes?
One of the biggest challenges Canadians face when it comes to retirement planning is that many do not know how much they need to save for retirement. We need to help change the conversation about retirement so people have a better understanding of what they will have to live on in retirement. Research has shown that talking about retirement income (as opposed to retirement savings) benefits plan members and sponsors:

  • Plan members - Monthly income estimates and an income replacement rate provide a clearer picture of what members will have to live on in retirement and can motivate them to contribute more to their retirement savings.
  • Plan sponsors - As members gain better knowledge about what their retirement income could look like and then take action to meet their goals, sponsors can help reduce the retirement insecurity that contributes to members staying in the workplace longer than they want to and help members to retire on time.

What's changing for plan sponsors:
It's important that we have the plan members' salaries in order to provide members with a more integrated and enriched experience on mysunlife.ca.

  • If we have the member's salary - we will be able to show their income replacement rate and their progress toward a retirement goal (if they haven't provided an income goal through the Retirement Planner, it will be assumed to be 60% of their salary).
  • If we don't have the salary - we will still show an estimated monthly retirement income, but we won't be able to show their income replacement rate or their progress toward a retirement goal.

Coming soon - currently, the only way we can get salary information is if the plan member completes the Retirement Planner. At the end of April, we will have an option for plan sponsors to upload their plan members' salaries on the Plan Sponsor website.

  • This information will feed immediately into the Retirement Planner, and be used to calculate their income replacement rate in real-time.
  • It will be visible to the plan member the next time they access the new income view on my financial centre.
  • If the plan member has completed the Retirement Planner in the past 12 months, that information will override any information provided by the plan sponsor.

Because there are benefits to providing a more comprehensive view of the members' retirement income, we will be rolling this feature out to all sponsors who have the Retirement Planner tool turned on. We will communicate more details later in April so stay tuned.

What you need to do:
There is no action you need to take at this time; there will be updates with more details in the coming weeks and months.

Questions?
Contact your Sun Life Financial Group Retirement Services representative.