Calculating your retirement income needs
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If you want to enjoy the type of lifestyle you currently have at retirement, it’s important to understand the
value of establishing a retirement plan, and how best to use it.
Calculating your income needs will give you some idea of how much you’ll need to save in order to meet
your retirement goals.
John Hancock Financial Services and Mathew Greenwald & Associates, a full-
service public opinion and market research firm specializing in consumer research, conducted a 2001
survey of plan participants regarding defined contribution savings plans.
The survey results demonstrate that the more you prepare for your retirement, the better off you will be.
According to the report*, only half of respondents have calculated their retirement needs. Similarly, only
half report having a specific plan about how to allocate their retirement funds.
*The Empowerment Factor, Insight into participant investment, knowledge and behavior regarding defined contribution plans.
Reprinted with permission from LIMRA International, Inc.
The survey demonstrated that participants don’t take advantage of all the resources that employers make
available to them. Fewer than half of participants with access to employer-provided financial planning or
investment advisory services use them, even when they are free.
Establishing a plan pays big dividends. Based on the report, respondents who calculate their retirement
needs:
- Contribute a higher percentage of their salary and are likely to contribute the maximum allowed
- Have asset mix targets (include different asset classes in their investments, such as bonds, equities, etc.)
- Are more likely to transfer between investment options or change contribution allocations to maintain their desired asset mix
- Have significantly higher retirement and savings balances
As you can see, it makes sense to plan and calculate your future retirement income needs. But what
would empower you to build a solid foundation for your retirement plans?
Your employer has entered in a partnership with Sun Life Financial via your participation in a group
retirement plan. We can offer you basic investment education to help you plan for retirement. This is
necessary to see whether changes in your individual lifestyle (such as buying a house, raising children,
getting married, approaching retirement, etc.) dictate changing or rebalancing your asset mix. In many
cases, your employer can offer these services free of charge, through Sun Life Financial.
Too good to be true? It’s not as complicated as you might think. All it takes is little planning around how
you want to enjoy your golden years.
If you’re thinking about retirement and planning, Sun Life Financial has resources to help you.
Sign in to the Plan Member Services website, www.sunlife.ca/member, to access the following tools:
- The Investment Risk Questionnaire – Identified by the Green tabs in the online version of the what? me save? guide -- this tool can help you determine what type of investor you are and what investment mix is right for you.
- The Retirement Savings Worksheet – an easy to understand worksheet, which helps you determine how much you’ll need in retirement, depending on your retirement goals. The red tab in the online version of the what? me save? guide is the retirement savings worksheet.
- Morningstar Canada – a leading provider of investment news and evaluation. You can access Morningstar from the Investment Information section of the Plan Member Services website.
If you have a general question or suggestion about this newsletter, please send an e-mail to can_pencontrol@sunlife.com or write to At a Glance Newsletter, Group Retirement Services Marketing, Sun Life Financial, 225 King Street West, 14th floor, Toronto, ON M5V 3C5.This bulletin has been created exclusively for you. It addresses issues to help you with your financial planning and investments.
Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.
Last Update: April 2005
