Pre-authorized contributions: A great way to save

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Do you find yourself wondering why you don’t save more for retirement? Do you miss the easy savings options your employer’s group retirement plan offered?

If you’d been in the habit of using your workplace group plan to save each month, then you’re well aware that making pre-authorized contributions (set amounts deducted from your paycheque each month) gives you the ability to increase your savings steadily, growing them more swiftly than through lump-sum payments. You’re also less tempted to spend the money before you save it, as it never makes it into your chequing account. And it’s all so easy: The money is automatically deposited into your group plan electronically, without any work on your part.

Pre-authorized contributions to a Group Choices plan are an excellent way of continuing to grow your savings in a group setting. Start with the savings you’ve already created through your workplace plan, and by frequent contributions to the Group Choices plan, depending on market conditions, aim to increase your balance each month.

You also potentially reduce the average cost of your investments. That’s because you’ll be capitalizing on a technique called dollar-cost averaging. If you invest a set amount regularly through pre-authorized contributions, you’ll be better able to handle market fluctuations. How? When the unit price of a fund is high, your fixed investment will buy fewer units, and when it’s low, it will buy more units. This will lower your average unit cost, essentially buying you more investment for your money.

And by withdrawing a certain amount each month from your pay – $100, for example – you won't feel the pressure to find a large lump sum to invest at year-end and you won’t be tempted to skip contributing altogether.

The advantages of Group Choices

Now that you’re leaving or have left your employer, it’s critical to protect the savings you’ve built up in your group plan. Failing to contribute enough money or saving on an ad hoc basis can erode the gains you’ve achieved and leave you with less money for retirement than you had planned to have.

Sun Life Financial can provide a fluid transfer of your valuable retirement savings into a Group Choices plan, allowing you to continue saving and growing your money without interruption. You won’t have to experience an unintended break in saving.

Other advantages of the Group Choices plan:

  • Competitive fees. Our investment management fees are generally lower than those for similarly managed funds available to the average individual retail investor at other financial firms.
  • Investment assistance. Our Financial Services Consultants* can assist you with your investment decisions.
  • High-quality funds. You’ll have access to fund managers not typically available to retail investors.
  • More than 70 investment options across different fund managers and investment styles.
  • Access to guaranteed funds.  If you invest in these funds, your initial investment is guaranteed at the fund’s maturity.
  • Unlimited fund transfers. You will be able to change your investment mix and move money between among funds at any time. However, funds must be held for a minimum of 30 days before they can be moved without incurring a fee.

If you’d like to transfer your funds from another financial institution, don’t worry: It’s easy. Sun Life Financial Services Consultants* can streamline the process from start to finish. They can also set up pre-authorized contributions to your Group Choices plan to keep you on track for your retirement savings goals.

Call a licensed Sun Life Financial Services Consultant* Monday to Friday, 8 a.m. to 6 p.m. at 1-877-805-9303 to start the process today.


*Registered as Financial Security Advisors in the province of Quebec.