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In today's landscape, employment opportunities often come in the form of low-paying jobs, or gig work. Coupled with the inflated cost of living, the path to financial independence has become incredibly steep.

Financial challenges, and stress related to personal finance are common issues. If you're hoping to avoid financial regrets later on, it's important to remember that no step is too small. You don't have to wait for the economy to work in your favour to build wealth. What matters most is building habits and taking the time to get started.

<On the slide:> Let's talk about 4 key areas:  

• Credit essentials
• Budgeting and debt management
• Cost of housing
• Saving essentials <End slide> 

We'll be looking at the basics of credit and budgeting over the next few slides. Some of you may already be comfortable with these topics. For others, this could be new information. Let's start with credit. Credit is the ability to borrow money with the promise that you'll repay it in the future. Interest is the amount a lender charges a borrower for lending them money. The interest rate on a loan is typically expressed as an annual percentage rate (APR). You might need credit to purchase a product or use a service that you can't pay for immediately. 

Common types of credit include installment loans for large purchases such as a home or car. 

And revolving credit arrangements, such as credit cards and lines of credit. 

A credit card, which is issued by a bank, is the most common method of paying for goods or service on credit. Many banks require that a person have a credit history before approving them for a credit card. With that said, there are banks that will offer the chance to obtain your first credit card without providing a credit history beforehand. If you aren't able to find a bank with an entry-level card, getting a secured, pre-approved credit card can be a first step to helping you build credit. Typically, the bank will put a hold on a set amount of money – say $500, for one year. They'll give you a credit card with a limit of the same amount they're holding, in this example: $500. Getting started early to build a good credit score can mean the difference between being approved, or denied, on future loans or rental applications.

In Canada, there are two credit bureaus that provide reports – TransUnion and Equifax. Loan approvals and mortgage rates depend on credit scores. Landlords also use credit scores. A credit report gives lenders details about every loan you've taken out in Canada in the last six years. It shows how much you borrowed, whether you've paid on time, and what you still owe. Credit bureaus assign credit scores ranging from 300 to 900 based on all this information. 

The best way to improve your score over time is to build a history of on-time payments. Pay your bills on time, every month, even if it's just the minimum payment. Not all account types are reported to credit bureaus. Mobile phone and internet providers may report your payment history to the credit agencies. If you're just starting to build your score, getting a post-paid cellphone plan may help.

<On the slide:> The slide displays a credit score scale in graphic form showing:

• Poor: 300 to 559
• Fair: 560 to 659
• Good: 660 to 724
• Very good: 725 to 759
• Excellent: 760 or more

Source citation: "Source: Loans Canada". <End slide>

With the higher cost of living, more Canadians are relying on credit for everyday purchases. 

NerdWallet Canada's 2024 Canadian Consumer Credit Card Report found 69% of Canadian adults used credit for essential purchases in the past year. Given the cost of school, the basic cost of living, and entry level wages or gig positions, plus the fact that budgeting, saving and debt management could be new skills that you're just learning, it's actually pretty easy for debt to get away from you in your early career. If this is where you're at, then it's time to take control. You won't get there overnight, but you can start today. Don't kick this down the road. 

Paying it off later can feel like an easier and therefore better idea. But doing that would cost you in the long run. Let's consider the math. Many credit card issuers require you to pay only 2-3% of the balance each month. Because of that, what happens is that the minimum payment actually decreases over time. That means it could take years and years to pay off a balance such as $5,000.

<On the slide:> A “Consider:" section that lists:

• The annual percentage rate
• How the lender calculates the interest
• Interest on mortgages and other loans
• Interest on credit cards

Source citation: "Source: Consumer Reports". <End slide> 

In fact, if you had a $5,000 balance, with an annual percentage rate of 20%, and you paid only a 2% minimum each month, it would take 66 years and 7 months to pay off. And you'd pay $23,000 in interest!

<On the slide:> Footnote: For illustrative purposed only. Minimum payment requirements may vary by province. <End slide>

This graph illustrates how increasing your monthly payments can help you pay off debt. 

Continuing with the previous scenario, a 2% minimum payment on a $5,000 balance would start out at $100 per month. If you paid $95 more than the minimum each month the debt would be paid off in @ 4 years. If you paid $140 more, it would be paid off in just under 3 years. The amount of interest you'd save in either of these scenarios is more than $21,000!

<On the slide:> Footnote under the graph states: "Assumes 20% interest rate. For illustrative purposes only. Exact amounts and repayment amortization may vary." <End slide>

To avoid heading into credit trouble, a solution could be to try and stop using credit. Consider living with a bare-bones budget and using all of your extra money to pay as much as you can to your credit card bills. If you have multiple debts, and are struggling to pay them, consider seeking help from a financial counselor. They can help you to negotiate with creditors. And if you don't have one, creating a budget should be your next step.

<On the slide:> A list of credit trouble warning signs:

• Don't have any savings
• Paying minimum on credit card bills
• Are at or near your credit card limits
• Struggling to make ends meet each month
• Forgetting that credit is really debt
• Paying bills late
• Taking cash advances against your credit cards
• Taking out payday loans <End slide>

A key to managing money is knowing how you spend it. A budget is a guide to help you with that. Use it to lay out your income and expenses, as well as short-term and longer-term financial goals. After you've done this, review your income versus your expenses. And compare your needs and wants. We have to spend money on some things like shelter and food. Other items are discretionary. If you have the money to buy all the things you need and want, then there are no concerns. But if you're having financial struggles, controlling how much you're spending on "wants" may be necessary. When income is low, control expenses. The opposite is also true. Say you've just finished school and are living at home and paying no, or very little, rent. Now is not the time to take on a lot of expenses, or to spend frivolously. It's actually the time to maximize your savings!! Build habits now that your future self will thank you for!

Some examples of ways to pay off debt are the avalanche, snowball and consolidation methods. The avalanche method is all about interest rates. You start by paying down the source of debt with the highest interest rate first. Once you've paid that debt off, move to the next highest interest rate. You'll pay less interest overall by tackling your debt with the highest interest rates first. The key to the snowball method is starting small. Start by paying off your debt with the smallest balance first. Then, once you've paid it off, move to the next biggest. 

You'll rack up bite-sized achievements faster on your quest to becoming debt free. Either way, it's important to note that you'll still need to make the minimum payments on all of your debt every month. Another choice is debt consolidation. A debt consolidation loan lets you repay your debts to all of your creditors at once. This means that you have only one monthly payment, often at a lower interest rate. This can save you money on interest, and can help you pay your debt off sooner.

One large debt you may have, or might be considering, is a mortgage. Buying a home in Canada these days is very expensive. And saving for the down payment can be a challenge. 

You might be wondering "How much can I really afford?" According to the lending institutions, you shouldn't spend more than 32% of your total monthly gross income for housing. That includes rent, mortgage, taxes and utilities. And your total monthly debt load, including your mortgage, shouldn't exceed 40% of your total gross monthly income. Gross income means your income before any taxes or deductions. Banks set these limits, for their benefit. They find that loan defaults increase if these thresholds are exceeded. But these limits don't consider your needs. For example, items like saving for retirement, or funding car replacements. If you plan to borrow up to these housing limits, you might not be able to afford other things. 

Everyone is different, with different needs, goals and objectives. Work out what you need to spend and save to make sure you can achieve your goals. And that includes how much you can really afford for a house.

<On the slide:> 

Canada's average MLS® price: $668,559*

• 4.89% annual interest rate; 20% down
• $3,047 monthly payment
• After 25 years in this scenario, you will have paid $914,120 in mortgage payments**

Footnotes:

• As reported by MLS®, for the first three months of 2024.

** $534,847 (mortgage) + $379,273 (interest). 20% = $133,712 down payment. Some numbers have been rounded.  <End slide>

In this slide there's an example to give you an idea of what 25 years of renting could cost. Rents in Canada have increased significantly over the past couple of years. But there are still financial benefits to renting. These include not being responsible for property taxes, maintenance and repairs. Heat, hydro and water may also be included in the rental rate. For homeowners, they have to pay all of these costs on top of their mortgage amount.

<On the slide:> 

• Average rent in Canada: $2,193/month*
• Expected annual increases: 3.6%**
• If you rent for 25 years in this scenario, you will end up paying $1,038,747

Footnotes:

• As at February 2024 per March 2024 Rentals.ca and Urbanation report.

**The rent increase guideline for 2024 in British Columbia is 3.5%; in Manitoba it is 3%; Ontario is 2.5%; Quebec anticipates rent increases of 4%; Nova Scotia cap: 5%. The average of these is 3.6%. <End slide>

There are pros and cons to buying and renting. The best decision isn't the same for everyone. You'll need to think about your life, needs, goals and dreams. As well as what your financial reality is. Not everyone will want the responsibility and costs that come with owning a house. And sometimes those that do want to own a house, won't be able to afford it. As house prices continue to climb, Canadians are exploring other financing options.

<On the slide:> A buying vs. renting comparison in two columns:

Buying:

• You build equity.
• It's difficult and costly to move.
• You can renovate or make other changes to your home.
• Additional expenses (taxes, insurance, utilities) are high.
• You're responsible for maintenance & repairs.

Renting:

Cheaper in the short term, but you don't build equity.

• You have the flexibility to move.
• You have less freedom to renovate.
• Additional expenses are low.
• The landlord handles maintenance & repairs. <End slide>

Compare the Market — an Australian-based price comparison website — ran a survey in February 2024. They asked 3000 adults, in Canada, the US and Australia, if they would consider buying a home with a friend, sibling, or another family member to offset costs. A 61% majority of the Canadians expressed willingness to partner with friends and siblings to enter the housing market. Younger Canadians were more likely to consider buying with friends or family. Nearly 80 percent of the 18 to 25 year-olds were open to such arrangements. There are of course concerns to consider. Some potential buyers fear risking the relationship, differing opinions on suitable properties, and financial irresponsibility of the potential co-buyer. It's also important to understand the legal implications of joint home ownership. For example, every co-owner is legally responsible for the mortgage under a typical agreement. Thus, a late payment or default by one, would have an effect on everyone's credit rating.

<On the slide:> A bar graph titled "Canadians who would buy a house with friends or siblings" with data from a February 2024 Compare the Market survey:

• X-axis shows four categories: Friends, Siblings, Both, Neither
• Y-axis shows percentage of respondents (0% to 80%)
• Each category has four bars representing different age groups:
• 18-25, 26-41, 42-57 and 58+ 

The graph shows that younger age groups (especially 18-25) are much more willing to consider co-buying, with nearly 80% of 18-25 year-olds open to buying with friends.

Source citation: "Source: Compare the Market survey, February 2024" appears at the bottom. <End slide>

If you've made the decision that you want to be a homeowner, the next step is likely saving the down payment. The First Home Savings Account (FHSA) and the Home Buyers' Plan (HBP), could be options to consider. Each of these have eligibility requirements, including age limitations and residency requirements. The details are outside the scope of this recording. You may wish to work with a professional to understand them.

<On the slide:> A comparison of the First Home Savings Account (FHSA) and Registered Retirement Savings Plan (RRSP) – Home Buyers' Plan (HBP) in a table format:

Annual contribution limit:

• FHSA: $8,000/yr once plan is open* (*$40,000 lifetime)
• RRSP: $33,810** (2026) (**Subject to your personal RRSP contribution limit)

Contributions:

• Both: Tax-deductible

Growth & Withdrawals:

• FHSA: Tax-Free growth, Tax-Free withdrawals if it is a qualifying withdrawal or a designated amount
• RRSP: Tax-deferred growth, Tax-Free up to $60,000 if criteria met for HBP; otherwise, withdrawals are taxable

Is there a pay back required?:

• FHSA: No
• RRSP: Yes, Payback period is 15 years if withdrawal was for qualified HBP

At the bottom, a note states: "You can use both!" <End slide>

You can also use TFSAs and non-registered accounts when saving for a home down payment. They're also used for other saving purposes such as vacations, emergency funds, or car purchases.

<On the slide:>  A  comparison of Tax-Free Savings account (TFSA) vs Non-registered Account (NREG) in a table format.

Contribution limit:

• TFSA: $7,000 (2026)* (*Subject to your personal TFSA contribution limit)
• NREG: N/A

Taxation:

• TFSA: Contributions made with after-tax dollars. Investment growth is tax free. No taxes upon withdrawal.
• NREG: Contributions made with after-tax dollars. Investment income and capital gains are taxable each year.

Reporting:

• TFSA: No tax forms are issued but your contributions and withdrawals are reported to CRA each year.
• NREG: Investment income earned and capital gains or losses realized during the year, are taxable each year and reported to you via tax slips.

A note at the bottom states: "TFSA room is based on age and residency in Canada. Only Canadian residents 18 years and older can contribute." <End slide>

The most common account type used by Canadians to save on taxes, and to save for retirement, is an RRSP. You may also have a pension plan, or other retirement account through your employer. When it comes to selecting a product to save in, ask yourself: "Why do I want to save? And is this a short-term or long-term goal?" The answers to these questions may help you choose the right account.

<On the slide:>  A comparison of Defined Contribution Pension Plan (DCPP) vs Registered Retirement Savings Plan (RRSP) in a table format.

Contribution limit:

• DCPP: Maximum $35,390 (2026)
• RRSP: $33,810* (2026) (*Subject to your personal RRSP contribution limit)

Taxation:

• DCPP: Contributions made with before-tax dollars. Growth is tax-sheltered. Pay taxes upon withdrawal. Withdrawal amounts included as income when filing your tax return for the year.
• RRSP: Tax-sheltered. Pay taxes upon withdrawal. Withdrawal amounts included as income when filing your tax return for the year unless withdrawal qualifies for Home Buyers Plan or Life-Long Learning Plan.

Reporting:

• DCPP: Contributions are reported on your T4 (and Relevé 1 for QC members). Withdrawals would be reported on a T4A (and Relevé 2 for QC members).
• RRSP: Contributions - RRSP receipts (2 per year). Withdrawals - T4RSP (and Relevé 2 for QC members).

Additional notes at the bottom:

"DPSP, Spousal RRSPs and TFSAs are also used for retirement savings"

"RRSP room becomes available after you have earned income and filed your first tax return" <End slide>

To be willing to set aside consumption today, and save money or reduce debt instead, takes an incredible amount of motivation. Working with a professional can help. Those who work with an advisor spend less, save more, and tend to not be as emotional with money.

<On the slide:> A circle chart that highlights the benefits of working with a financial advisor:

Versus non-advised households, the average household with a financial advisor accumulated:

• 1.8x more financial assets (Over 4 to 6 years)
• 2.1x more financial assets (Over 7 to 14 years)
• 2.3x more financial assets (Over periods greater than 15 years)

A sidebar states: "When it comes to advice, the numbers don't lie. Working with a financial advisor helps increase your wealth."

Source citation: "Source: More on the value of Financial Advisors, Claude Montmarquette, Alexandre Prud'Homme, CIRANO 2020" <End slide>

Thanks for watching. We hope you've found the information to be useful and that we've raised some questions for you to further explore.

<On the slide:> Thank you! The information provided is of a general nature and can not be construed as personal financial or legal advice. Neither Sun Life or its affiliates guarantees the accuracy or completeness of any such information. This information should not be acted on without obtaining counsel from your professional advisors, including a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec) as may be applicable to your individual situation.

Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies. <End slide>

On behalf of Sun Life, welcome to our Save for retirement now session. The focus of this topic is to introduce you to retirement planning.

Times have changed. In the past, people had one job for life and few financial options. Now, we switch careers, face many financial choices, and have diverse family structures. We're also living longer than our parents and grandparents did. This means we must make more decisions about money.  It’s important to think about how you want to live in retirement. And to give consideration to protect your savings against unexpected events. Planning ahead can help you maintain your lifestyle and ensure a secure and enjoyable retirement.

Canadians are living longer than prior generations, but we're not planning for it. Most of us underestimate our lifespan by five years. Think about that - five years without income, at a time where you could have higher health care and housing costs. A recent Sun Life Barometer study shows Canadians expect to retire at 64. With longer life expectancies, where many will reach age 90 and beyond, we need to save more than prior generations did in order to cover a longer retirement.

<On the slide>

Probability at age 65 of living to the following ages:

Female has a 76% probability of living to age 80.  Male has a 65% probability.

Female has a 59% probability of living to age 85.  Male has a 45% probability.

Female has a 38% probability of living to age 90.  Male has a 24% probability.

Female has a 17% probability of living to age 95.  Male has a 9% probability. 

Source: The Canadian Pensioners’ Mortality Table published by the Canadian Institute of Actuaries, 2014. Based on assigned sex at birth.

<End of slide>

Inflation poses a significant risk to wealth building, eroding purchasing power over time.

The Bank of Canada targets a 2% inflation rate, but recent years have seen dramatic increases. At just 2% annual inflation, prices would rise substantially over 20 years: a $100 grocery bill becomes $149, a $3.50 coffee jumps to $5.20, a $50,000 car inflates to $74,300, and a $675,000 house skyrockets to $1,000,000.

As investors, we must ensure our returns at least match, and ideally exceed, inflation rates. If we fail to do so, especially during high inflation periods, we'll experience a decline in our standard of living. To truly grow our savings, we need to outpace inflation consistently over the long term.

Retirement can span many years – 25, 30, or even more. As we age, spending will often shift from leisure to health care.  And, over time, needs and wants often change due to age, health, and unforeseen events such as illness or death of a spouse, needs of children, grandchildren, or elderly parents.

When planning for retirement, one of the first steps is to think about what you see yourself doing in retirement.  Your desired lifestyle has a major influence on your retirement planning.  Some people want to work part time in retirement. Others don’t. Some people want to stick close to home, while others want to travel the world.  It’s essential for you to think about your needs, wants and dreams.  What makes up your retirement vision? This isn’t anybody else’s retirement – it’s yours. So, what do you want it to look like?

Some expenses will most likely stay the same (keeping in line with inflation), while others will decrease, and some will increase.

Basic needs of living such as groceries and utility bills may stay the same, only increasing as they do today with inflation. Work related expenses will decrease, such as commuting and saving for retirement. Lifestyle expenses such as hobbies and travel may increase, as may health-care and other living expenses as you age.

In Canada there are typically three sources of income at retirement. There are government sources, such as Canada Pension Plan and Old Age Security. There are primary sources, such as company sponsored retirement programs and personal RRSPs.  And there are secondary sources such as properties and other savings.

Canada offers three main government-sponsored retirement programs:

1. The Canada Pension Plan or Quebec Pension Plan which provides benefits based on your employment earnings and contributions to the program. You can start receiving it at age 65, or as early as age 60 with reduced benefits. Delaying until age 70 increases your benefit by 42%.
2. Old Age Security is Canada's largest pension program. You qualify at 65 if you're a citizen or legal resident who's lived in Canada for at least 10 years after turning 18. Your benefit depends on your years in Canada, your age when you start receiving the benefit, and your net retirement income. Delaying until age 70 increases your benefit by 36%.
3. The Guaranteed Income Supplement offers tax-free benefits to low-income seniors who receive OAS and live in Canada. Marital status and income determine the actual amount received.

You must apply for these benefits about six months before you want them to start. Carefully timing your CPP/QPP and OAS payments can help you maximize your retirement income.

Canada offers various investment accounts to help you save on taxes and plan for your future. To choose the right account, ask yourself why you're saving and whether it's a short or long-term goal.

Tax-deductible investments reduce your taxable income in the year you contribute. This means you pay less income tax now.

Tax-deferred investments delay taxes until later. You don't pay tax on earnings like interest, dividends, and capital gains until you withdraw money.

Registered products, such as Registered Retirement Savings Plans and Defined Contribution pension plans, offer both tax-deduction and tax-deferral benefits.

Tax-free investments, like Tax-Free Savings Accounts or TFSAs, grow tax-free. You pay no tax on earnings during the investment period or when you withdraw.

Non-registered investments use after-tax money. They don't offer tax deductions or deferrals. While withdrawals aren't taxable income, they may result in capital gains or losses. You'll pay yearly taxes on investment income and capital gains, but you can use capital losses to offset gains.

Many Canadians use RRSPs to save on taxes and for their retirement. RRSPs can also be used to save for a house.

To contribute to an RRSP in Canada, you must be under 72 years old. You must also be a Canadian resident for tax purposes and have earned income. RRSP room becomes available after filing your first tax return once you have earned income.

Contributions, within your personal limit, are tax-deductible. This means you pay less income tax now. Plus, contribution and investment earnings are tax deferred until you withdraw them. In the year of a withdrawal, the full amount is included in your taxable income.

Watch that you don’t over-contribute. We each have a unique RRSP contribution limit, and it’s up to you to monitor your own limit.

Limits include the current year amount, plus any unused room from prior years, minus any pension adjustments. Pension adjustments come from contributions made on your behalf into pension plans or deferred profit sharing plans. They lower your RRSP limit in the following year.  This makes sure that Canadians who have pensions or DPSPs don’t have a tax advantage over those that don’t.

You share your limit with all RRSPs you contribute to, including spousal RRSPs. Find your limit on your most recent Notice of assessment or CRA My Account.

You have three options for RRSP contributions: your own plan, a spousal RRSP, or a combination of both.

Spousal RRSPs offer an excellent opportunity for income splitting, helping couples balance their retirement income and minimize taxes.

A spousal RRSP works like a regular RRSP, but it's registered in your spouse's name.

As the contributor, you receive the tax deduction for eligible contributions, which count towards your personal RRSP limit, not your spouse's.

A withdrawal from a spousal RRSP is taxed back to you if withdrawn before 3 years have passed since the last spousal contribution. The timing of contributions and withdrawals should be considered carefully.

Canadian residents 18 or older with a valid Social Insurance Number can contribute to a TFSA. In provinces or territories where the age of majority is 19, contribution room will start at age 18, but they can’t open a TFSA till age 19.

Contributions to a TFSA are made with after-tax dollars. This means that you’ve already paid tax on the money. Thus, contributions aren’t deductible for income tax purposes.

It’s up to you to know and track your TFSA limit. You share your limit with all TFSAs you contribute to. You can use the CRA’s My Account for Individuals service on Canada.ca to check your limit.

Investment growth in a TFSA is generally tax-free, even when you withdraw it, making them a great way to supplement other forms of retirement savings like government programs and other personal savings.  They can provide a way to make major purchases without making large withdrawals from a taxable account. This may be useful for tax planning purposes.

<On the slide>

 A picture showing that your TFSA limit is made up of the Current year’s TFSA limit plus unused TFSA room, plus withdrawals from previous years. <End slide>

Secondary sources of income in retirement can include real estate, such as rental property or a vacation home. It can also include selling, or downsizing your principal residence.  And it can include borrowing on the equity of your home to invest in non-registered investments.

Other types of secondary sources of retirement income could include:

• Stocks,
• Bonds, and
• Some life insurance policies.

<On the slide>

* Cash surrender value or investments within a life insurance policy. <End slide>

There’s no age limit with a Non-registered Account. You can continue adding money and saving with an NREG during retirement.

Contributions to an NREG are after tax. This means contributions made to the NREG are after income tax deductions. Withdrawals aren’t considered taxable income, but they may result in a taxable capital gain or loss.

NREG’s are a great way to supplement other forms of retirement savings like pension plans and RRSP’s.  Just remember, you’ll be taxed each year on any investment income and/or net capital gains. We suggest working with a tax advisor for advice related to capital gains and losses in your specific situation.

We’ve provided you with a lot of information today. You might be wondering about your own situation and how this information may apply to you.

There are many tools at Sun Life to assist you. We encourage you to explore them.  This is also a good time to reach out to your advisor if you have one, or to find one if you don’t.

Advisors are trained to help clients stay focused on their objectives and timelines. A 2020 study reveals that clients working with advisors tend to spend less, save more, and manage money less emotionally. A skilled advisor can be your ally in achieving your retirement goals.

<On the slide>

A circle chart showing how working with a financial advisor increases wealth across 3 time frames (4-6 years, 7-14 years and 15+ years). <End slide>

<On the slide>

The information provided is of a general nature and can not be construed as personal financial or legal advice. Neither Sun Life or its affiliates guarantees the accuracy or completeness of any such information. This information should not be acted on without obtaining counsel from your professional advisors, including a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec) as may be applicable to your individual situation.

Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies. <End slide>

On behalf of Sun Life, welcome, and thank you for joining.

Since our Mother's and Grandmother's day, the financial picture for women in Canada has changed. But, by how much? A 2019 study shows 70% of Canadian women aged 25-34 were university graduates. BUT only 62% of Canadian women over 18 were employed. Women influenced 55% of Canadian investable assets. By 2028 they'll control $3.8 trillion of wealth. Women are earning more money than ever before in history. They're becoming better educated, and living longer than men. These things are challenging the status quo. But, women have three strikes against them. The fact that they live longer. The fact that they earn less. And, the fact that they have more time out of the workforce. So, if you feel like you're falling behind. If the financial information you're receiving isn't resonating with you. If the glass ceiling feels firmly still in place. You're not alone. People's experience will vary of course. Some will have late entry into the workforce because of staying home to raise a family. Others are childless by choice. Some are comfortable with financial decisions. Others are at the beginning stages of the money journey. We're all unique and life is a personalized experience. But the society we live in and the financial systems in place aren't yet fully aligned with women's lived experience. There are unique challenges a woman faces when saving to fund her own retirement.

<On the slide:>

Source citations:

1. OECD, "Country Note: Canada," Education at a Glance 2019, 2019
2. Statistics Canada, "Table 14-10-0327-01: Labour Force Characteristics by Sex and Detailed Age Group, Annual," 2020
3. CIBC Economics, The Changing Landscape of Women's Wealth, March 2019

<End slide>

Women have made great strides in the last half century. We're better educated, have greater responsibility in the corporate world, and are leaders in many professions. Despite these successes, women still face gender-related obstacles to wealth creation.

<On the slide:>

TITLE: Women's unique financial challenges.

There is a list of five key challenges:

• Earnings gap
• Work interruption
• Longevity
• Suddenly single
• Confidence gap

<End slide>

Women still earn, on average 84 cents on the dollar as compared to men. That means that for a man's $70,000 salary, a woman earns just $58,800. The gender pay gap is worse for those who face multiple barriers. This includes racialized women, Indigenous women, and women with disabilities. Though it differs by age group, the gap starts from a young age and carries into the senior years. According to a 2018 Girl Guides of Canada report, girls aged 12 to 18 experience a summer job gender pay gap of almost $3.00 per hour. And a recent Canadian women's foundation study finds college-educated women make about 90 per cent as much as men at age 25, but only about 55 per cent at age 45. The earnings gap contributes to a gendered pension gap. Women retire with only about 80% of the pension that men retire with according to a 2021 Mercer CFA Institute report. Unfortunately, women also have a higher cost of living, known as the "pink tax." The 'pink tax' refers to the extra amount charged to women for certain products or services. According to a 2021 analysis by ParseHub, overall, women in Canada pay upwards of 50% per cent more on average than men for items like body wash, deodorant, and razors.

<On the slide:>

Source citations:

1. Canadian women's foundation, sourced June 2024
2. Mercer CFA Institute, 2021
3. 2021 analysis ParseHub

<End slide>

Women also have more demands on their time than ever before. We're juggling career, caring for a family, and managing a house-hold, on top of "everything else". Because of the demands on women's time, women typically leave the workforce more often than men. This is typically for extended periods of time to care for children or other family members. These are of course very important and necessary tasks, but they're also tasks that come at a financial cost.

A lot of women will hold lower paying or part-time jobs that offer more flexibility. Often these jobs don't offer retirement plans. The "motherhood penalty" is the financial penalty that women may experience for having children. It ranges from seeing their income dip, to being sidelined for promotions and being viewed as less committed to their job.

As cited by Xuelin Zhang in "Can Motherhood Earnings Losses Be Ever Regained?" employment and earnings conditional on being employed, fall sharply around the time a woman gives birth. It may also remain permanently lower well after. There's a dynamic that perpetuates itself. If a is child is sick and someone needs to take time out of their workday, it's likely going to be the woman. Because they're paid less, it makes more economic sense. And, thus, it's a self-fulfilling prophecy.

Unfortunately, the motherhood "penalty" isn't the only one. Another is the 'good daughter' penalty. This is where women take time off work to look after elderly parents or other family members. According to Stats Canada, in 2022, 52% of women aged 15 and older (or almost 8.4 million women) provided some form of care. This was to children and care-dependent adults, whether paid or unpaid.

Women were much more likely than men (at 42%) to provide care. 7% of these women are considered dual caregivers. They're caring for both children and care-dependent adults at the same time. Even menopause can have a detrimental effect on women's financial well-being. It's often cited on income protection claims as a factor forcing women to take time out of the workplace.

There is a 14% drop in the number of working women in Canada between age 45 and age 59. This compares to a 10% drop for working men. While everyone's menopause journey is unique, 95% of women in a recent survey by the Menopause Foundation of Canada reported that they experience symptoms. An average of seven symptoms were reported. Common symptoms are hot flashes, sleep disturbances and mood swings. Lesser known symptoms are anxiety, urinary incontinence and heart palpitations. For too many women, it becomes too much. An estimated 1 in 10 will leave the workforce due to unmanaged symptoms. Could menopause be the missing link to explain why more women aren't breaking through the glass ceiling? The age range impacted by menopause intersects with a time of life when women are in, or poised for, increasingly senior leadership roles.

Why, at the peak of their earning potential, are women opting to take a pay cut or leave paid work entirely? Let's link together the facts. Women earn less over their careers, experience work interruption, and leave the workforce earlier than men. It's clear to see how we're financially affected in the workforce. Next, let's take a look at some other financial effects of being a woman.

<On the slide:>

• "5% - 40%" - "The motherhood penalty" - "Impact on employment earnings due to becoming a mother¹"
• "52%" - "The good daughter penalty" - "Almost 8.4 million women in Canada provide some form of care²"
• "14%" - "Between ages 45 and 59" - "Drop in the number of working women in Canada³"

Source citations:

1. Zhang, "Can Motherhood"; "Can Motherhood" 1678.
2. Stats Canada, 2022
3. Menopause Foundation of Canada, 2023

<End slide>

Women have longer life spans than men. This isn't new information. It is; however, very important information. It means women need more money over the course of a lifetime. We also need to make our savings last longer than men do. Medical and public health advances have brought about dramatic improvements in life expectancy over the last decades. The current average life expectancy for a Canadian female is 84 years. This is the "from birth" expectancy. A woman retiring at age 65, can expect on average, to live to age 89. It's no wonder a recent study showed that 80% of women are concerned about outliving their money!

<On the slide:>

• Average life expectancy for Canadian women: 84 years
• 81% of centenarians are women¹
• At age 65: A woman in Canada can expect to live another 24 years!
• 80% are concerned about outliving their money²

"Sources:

1. Canada Protection Plan, What is the Life Expectancy In Canada?, April 2020
2. Real Simple, Why Women Need to Be Financially Planning for a 100-Year Life, June 2021

<End slide>

When you think widow, you may be picturing a woman in her 80s or 90s. The reality is that the average age for widowhood in Canada is 56. Financially, widowhood can be devastating. There is often not enough time to rebuild assets, and they can expect to live many more years. 76% of widows wish they'd been more involved in making financial decisions when their spouse was alive. 53% of widows said they didn't have a plan for what would happen if one of them died. And in 2019, close to 28% of baby boomers had reportedly saved less than $10,000 for retirement. This will leave them open to major financial hardships during their final years.

<On the slide:>

• 1.5 million widows in Canada¹
• The average age for widowhood is 56¹
• 76% of widows wish they had been more involved in making financial decisions when their spouse was alive²
• 53% of widows said they did not have a plan for what would happen if one of them died³
• 16% of elderly women on their own live below the poverty line⁴

Sources:

1. Statistics Canada, CANSIM, table 0051-0042 (2020)
2. Wealth Professional, Wealthy women let their spouses make key financial decisions, March 2019
3. Merrill Lynch/Age Wave study, Widowhood and Money: Resiliency, Responsibility and Empowerment, February 2018
4. Canadian Women's Foundation, The Facts about Women and Poverty in Canada, 2022

<End slide>

Evidence shows that women are less self-assured than men when it comes to financial decision-making. 46% of women say they lack sufficient knowledge about how much retirement income they need. 35% of women say they lack sufficient knowledge about how to select investments, and 32% of women say they lack sufficient knowledge about government retirement income programs. This lack of confidence often means women tend to take less risks in their financial decision- making. This can lead to lower returns on investments. Or, so we've been told. But, what's actually the truth?

<On the slide:>

Source: Advisors Edge, Helping women reach their retirement goals, November 2019

<End slide>

The truth is, in spite of the challenges we face, and in spite of the industry not being fully aligned to our needs, women often make great investors. We're 'risk-aware', less impulsive, and tend to make fewer trades than men do.

According to a 2022 report from Wells Fargo, women on average take on about 82% of the risk that men do. But their portfolios performed better when adjusting for the levels of risk. High-risk investments that promise huge potential gains can be alluring. More often than not, they don't deliver. Women tend to avoid high-risk trends. They make investments that are more likely to deliver gradual, long-term growth over the years. This is often proving to be more lucrative in the long run. In a 2017 survey by Fidelity Investments, only 9% of women thought they could do better at investing than men. However, research consistently shows that this isn't the case.

According to an analysis from Fidelity in 2021, women saw returns that were 0.4% higher over a 10-year period. While 0.4% doesn't sound like much, even slightly higher returns can mean tens of thousands of dollars more money in the long run. Women tend to have a measured, cautious approach to investing and personal financial planning. Research has found that women tend to make investment decisions in a less impulsive manner than men. According to a 2022 survey from Nationwide, only 8% of women withdrew money from their retirement accounts during periods of market fluctuation. This compares to 15% of men. It's difficult to remain calm when the financial markets are unstable. But doing so can lead to greater investment success. People sometimes think that the more active you are at trading stocks, the more money you'll make. One of the best ways to actually build wealth in the stock market is to invest in good companies and hold them for a long time. While it's possible to sometimes make money from short-term trading, it's riskier and usually doesn't pay off as well.

A study from UC Berkeley found that men trade about 45% more often than women. And that extra trading lowered their returns. The higher-frequency trading shown by men in the UC Berkley report was attributed to overconfidence. This can lead to impulsively taking greater risks, without looking at the bigger picture. Women, on the other hand, are more likely to deliberate before placing a trade. Generally, the report showed that they don't take sub-optimal setups as often as men do. So they tend to have a higher winning percentage. In summary, while women may lack confidence in themselves as investors, hopefully we can change that narrative. The numbers just aren't backing it up.

<On the slide:>

Sources:

1. 2021 Wells Fargo report;
2. 2021 Fidelity report;
3. 2022 survey from Nationwide.
4. University of California Berkley

<End slide>

The key risks we've covered demonstrate how important it is to take charge of your financial future. You wouldn't remodel your house or apartment without giving it a lot of thought and making SPECIFIC design choices. The same thing applies to financial and retirement planning. You need to know what you're really looking to accomplish. What kind of life do you really want to lead? Then align your budget with that. Align your financial plan with that. Align your Investing with that. It all links together.

<On the slide:>

TITLE: Take control.

There are 5 key action steps:

• Identify and prioritize your goals
• Start with a budget and develop a plan
• Learn the fundamentals of investing
• Talk to a trusted financial professional
• Review, reassess, and rebalance

<End of slide>

Only you can identify your goals, no one else. After you've identified your goals, you'll need to prioritize them. Think about where you are in life. Consider which goals to tackle first. And which goals may impact others. Are there any special concerns you might have?

<On the slide:>

TITLE: Identify and prioritize your goals.

There is a list of 5 common financial goals:

• Education
• Housing
• Business
• Retirement
• Passing on wealth

<End of slide>

Once your goals and priorities are identified, the next step is to link it with your money. Develop, or revisit your budget and financial plan. A key to money management is to know how you spend your money. When you have that information, you can plan a budget that works for you. Compare your needs and wants, and control and monitor your spending regularly. Whenever your income changes, it's a good time to reassess your budget.

<On the slide:>

TITLE: How to create a budget.

The slide shows a simple four-step process:

• List all sources of income
• List all monthly expenses
• Look at needs versus wants
• Control and monitor spending

<End slide>

A basic understanding of how inflation, taxes and diversification can affect your investing strategy is needed. It'll help you make better-informed investment choices.

In addition to growing your money, you may wish to consider protecting it. According to 2021 Canadian Cancer statistics, breast cancer is the most common cancer in Canadian women, with the exception of non-melanoma skin cancer. 1 in 8 women are expected to develop breast cancer during her lifetime. 1 in 34 will die of it. But the #1 cause of premature death of women in Canada is actually heart disease and stroke. Estrogen's protective effect on women's heart and brain health fluctuates at different life stages. This results in unique risk factors for women. There is good news though! Medical advances mean we're surviving more and more critical illnesses. The bad news is the healthcare system doesn't cover all the costs associated with getting sick and surviving.

Protecting your income and savings is an important part of your plan. There are different insurance options to consider. For example, life insurance, health insurance, critical illness insurance and long-term care insurance. During your working years, it's important to focus on protecting your income. As you move toward retirement, it becomes more important to protect your assets.

<On the slide:>

3 sections:

1. Financial protection – Life insurance

• Term – protection for short-term needs
• Permanent – protection for long-term needs

2. Financial protection – Health insurance

• Long-term care
• Critical illness
• Disability
• Health & Dental
• Accidental death & dismemberment

3. Financial protection – Other

• Property insurance (house, condo, apartment)
• Vehicle insurance
• Emergency account
• CPP/QPP disability benefit
• Workplace coverage

<End slide>

We've covered a number of gender-specific obstacles and barriers that women face when reaching financial goals. Recognizing the hurdles and building a plan around them can help. So can speaking to professionals for guidance.

<On the slide:>

A chart:

Earnings gap: Try to start saving early. Do your research. Negotiate your salary.

Work interruption: Maximize your retirement benefits.  Talk about flexible workplace options.

Suddenly single: Be actively involved in making financial decisions. Build a plan that works for a couple or as individuals.

Confidence gap: Learn the basics of investing. Consider working with an advisor.

Longevity: Long-term care insurance policies.  Consider diversification of products.

Source: www.Kiplinger.com/slideshow/retirement/T047-S001-reasons-women-will-never-retire/index.html

<End Slide>

<On the slide:>

Thank you! The information provided is of a general nature and can not be construed as personal financial or legal advice. Neither Sun Life or its affiliates guarantees the accuracy or completeness of any such information. This information should not be acted on without obtaining counsel from your professional advisors, including a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec) as may be applicable to your individual situation.

Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies.

<End slide>

Welcome to our Newcomers to Canada presentation! This presentation aims to provide general information relevant to living in Canada. Some content may be familiar, other parts new. We hope to raise awareness and questions for you to explore further. And we hope to help you identify what next best actions you can take, that will help you achieve your goals.

Step 1 upon your arrival in Canada, may have been to contact loved ones back home to let them know you arrived safely. Step 2, for many, is to open a Canadian bank account. Opening a bank account is one of the most important steps when you arrive in Canada. It provides financial safety for your money and makes paying bills and managing finances much easier. There are two main types of accounts - chequing and savings. A chequing account is for day-to-day transactions like bills and withdrawals. A savings account holds longer term money for things like trips or emergencies. Banks allow most banking to be done online, or through mobile banking on your phone. Paying bills using your computer, tablet or smartphone is a great way to limit paperwork and save time. Familiarize yourself with your bank's online services so you can manage your accounts from anywhere. Your bank can provide tutorials to help you learn. All major banks in Canada offer free banking for newcomers for 1 to 2 years. Be sure to take advantage of this when opening an account. Having a Canadian bank account will help you settle into life in Canada and reach your financial goals.

<On the slide:>

TITLE: Banking in Canada

• Manage your day-to-day transactions
• Low monthly cost
• Convenient
• Secure

<End slide>

Credit is the ability to borrow money with the promise that you'll repay it in the future. Interest is the amount a lender charges the borrower for lending them money. Lenders typically note the interest rate on a loan on an annual basis, expressed as an annual percentage rate (APR). There are two main types of consumer credit: installment loans and revolving credit.

Borrowers repay installment loans with fixed regular payments over time. These loans include mortgages, auto loans, and student loans. The payment stays the same each period and covers both principal and interest. Installment loans are closed-ended, for a specific time period. Collateral like a car often secure the loan. Revolving credit, like credit cards, allow you to borrow up to a limit. You can pay a minimum each month. You can fully pay it off. Or, you can make a set, regular payment. These are open-ended with no fixed payoff date. Interest on revolving credit is usually higher than installment loans. Newcomers to Canada often face issues getting credit cards. Immigration status and required documents limit some to entry-level cards. These cards have minimal credit limits. The limits are often insufficient for initial expenses, especially for families. Yet newcomers may have savings to cover spending. Some banks will offer the chance to obtain your first credit card without providing a credit history. This will help get you started on building your credit in Canada. Once you've been approved for a credit card, it's important to use it responsibly in order to build a good credit score.

<On the slide:>

A comparison of the two main credit types in a two-column format:

Installment loan:

• Mainly used for large purchases
• Set payment amount
• Payment includes interest
• Secured
• Closed-end
• Examples:
  • mortgage to buy a house
  • car loan

Revolving credit:

• Often used for smaller purchase
• May or may not have set payment amounts
• Interest charged is usually higher than installment loan
• Not secured
• Open-end
• Examples:
  • credit card
  • line of credit

Tip: Getting a secured, pre-approved credit card can be a first step to helping you get credit in Canada.

<End slide>

Loan approvals and mortgage rates depend on credit scores. Landlords also use credit scores. A good score can help get loans approved, lower mortgage interest, and allow approval for renting an apartment. A credit report gives lenders details about every loan you've taken out in Canada in the last six years. It shows how much you borrowed, whether you've paid on time, and what you still owe. Credit bureaus assign credit scores ranging from 300 to 900 based on all this information. To improve your score over time, there are a few things you can do. Pay your bills on time, even if it's just the minimum payment. Building a history of on-time payments over the years is the best way to boost your score. Don't ask for too much credit, all at once. It can lower your score. Keep the balance that you owe low compared to your credit limits. Below 30% is best. And, Get time on your side. Older accounts, with good history, will help your score improve. If you're just starting to build your score, getting a post-paid cellphone plan, may help you. Not all account types are reported to credit bureaus. Mobile phone and internet providers may report your payment history to the credit agencies.

<On the slide:>

The slide displays a credit score scale in graphic form showing:

• Poor: 300 to 559
• Fair: 560 to 659
• Good: 660 to 724
• Very good: 725 to 759
• Excellent: 760 or more

Source citation: "Source: Loans Canada".

<End slide>

<On the slide:>

Budgeting – know where your money goes

<End slide>

A budget is a key money management tool. It's used to lay out income and expenses, as well as to plan for your financial goals. Knowing where your money is going can reduce financial stress. And planning for your financial needs and goals will allow you to better prepare for the future. A budget may also help you to understand where you could be saving more.

<On the slide:>

TITLE: What is a budget?

• A guide to spending your money
• Lays out your income and expenses
• Considers your short and longer-term goals

Tip: Online tools, spreadsheets or good old-fashioned pen and paper all work. Find the way that's best for you!

<End slide>

The purpose of an emergency fund is to prepare for unexpected costs. Things like car repairs, job loss, or home issues. The common goal is to save 3 to 6 months of living expenses. How much you earn, your expenses, debt, and interest rates on that debt, will affect how you save.

Some strategies to consider are: To start small by saving what you can each paycheck. Keep your emergency fund separate from other savings. If possible, avoid using credit cards or loans as your solution for an emergency. This can be very expensive. If you have extra income one month, add it to your emergency account on top of your regular amount. During tough months when money is tight, it's okay to reduce or pause saving while adjusting your finances. Be sure to reassess and restart saving once your income increases or expenses go back to normal.

<On the slide:>

Three columns:

1. There is no one rule:

• Some people have a savings plan through their employment
• Some people have low-interest debt payments

2. Build an emergency fund:

• Taking small steps toward saving is better than no steps
• Keep your emergency fund separate from other savings

3. Prioritize your expenses:

• Don't rely on debt
• Sometimes a balance between saving vs paying debt is the solution

Tips: Try to save 3 to 6 months of living expenses.  And, It's okay to pause your savings during an emergency!

<End slide>

<On the slide:>

Taxation and investment products

<End slide>

Taxes are mandatory payments that support important programs and services. Understanding taxes and take-home pay is important. People sometimes change jobs in their first years in Canada. Taxes and deductions can cause the pay received to be different than what was expected. This difference can be a reason for changing jobs. Be sure to check your paystub carefully. Resources are available to help newcomers understand the Canadian tax system. The CRA website provides information on filing, credits, and benefits. You must submit your tax return each year to the Canada Revenue Agency, and, if applicable, Revenu Quebec by the tax deadline. The deadline is usually April 30th. It's important to file by the deadline. Filing your taxes on time ensures you receive all the tax credits and benefits you're eligible for.

<On the slide:>

2 columns.

1. Income Tax

• You must file a tax return every year
• Mandatory
• Report all income e.g. salary, income earned on investments, rental property income etc.
• File with the Canada Revenue Agency (CRA) and, if applicable, Revenu Quebec by the tax deadline – for most individuals April 30th of each year

2. Payroll deductions:

• Income earned and take-home pay will be different
• Income tax
• Canada Pension Plan or Quebec Pension Plan contributions (CPP/QPP)
• Employment Insurance (EI)
• Contributions to employer sponsored savings plans
• Deductions for Group Benefits coverage

Below the columns are resources:

Tax Services for Newcomers to Canada: cra-arc.gc.ca;

Government of Canada: 1-800-959-8281

In tax season, many community organizations & immigrant-serving agencies offer free information sessions on how to complete tax returns."

The slide also includes an example calculation:
Example: If you earned $50,000/year:

• Paid bi-monthly
• Gross pay $2,000
• Federal & provincial tax* $900
• CPP/EI deductions* $150
• Take home pay** $950

*For illustrative purposes only to understand the concept. These are not actual deductions or tax rates.
**Other deductions may apply. Some numbers have been rounded.

<End slide>

There are various investment accounts available in Canada to help save on taxes, as well as for the future. The best option will depend on what you want to save for. Ask yourself why you want to save and if it's a short, or long-term goal. This will help you choose the right account.

Many Canadians use RRSPs to save on taxes and for their retirement. RRSPs can also be used to save for a house. To contribute to an RRSP in Canada, you must be under 71 years old. You must also be a Canadian resident for tax purposes and have earned income. RRSP room becomes available after filing your first tax return once you have earned income. Contributions, within your personal limit, are tax-deductible. This means you pay less income tax now. Plus, contribution and investment earnings are tax deferred until you withdraw them.

Watch that you don't over-contribute. We each have a unique RRSP contribution limit, and it's up to you to monitor your own limit. Limits include the current year amount, plus any unused room from prior years, minus any pension adjustments. Pension adjustments come from contributions made on your behalf into pension plans or deferred profit sharing plans. They lower your RRSP limit in the following year. This makes sure that Canadians who have pensions or DPSPs don't have a tax advantage over those that don't. You share your limit with all RRSPs you contribute to, including spousal RRSPs. Find your limit on your most recent Notice of assessment or CRA My Account. Financial Institutions issue tax receipts for RRSP contributions. Receipts are issued for the first 60 days of the year, as well as for the remainder of the year.

Canadian residents 18 years and older can contribute to a TFSA. You can contribute to a TFSA only for the years you're a resident of Canada and have a valid Social Insurance Number. A TFSA can help you save for retirement, a home, or emergency expenses. Contributions are made with after-tax dollars, so you don't get a tax deduction. But, investment growth and withdrawals are generally tax-free. Watch that you don't over-contribute. You need to track your own limit, which applies to all your TFSAs combined. TFSA room is made up of the current year's limit, plus any unused room, and withdrawals made in the previous year.

Financial institutions don't issue tax slips for TFSAs. You can check your limit on the CRA My Account website.

<On the slide:>

Risks and protecting yourself

Protecting personal information and accounts is important because fraud can result in financial losses and identity theft. Being aware of common scams and taking precautions helps reduce the risk of becoming a victim. Here are some key-ways to protect against fraud: - Be wary of unsolicited requests for personal or financial information via phone, email, text, or mail. Legitimate organizations will not ask for sensitive details like passwords or bank account numbers out of the blue. - Use strong, unique passwords and enable multi-factor authentication when available. This makes it much harder for fraudsters to access accounts even if they obtain a password. - Skepticism is important when promises seem too good to be true. Lottery wins and inheritances that require upfront fees should raise concerns. If it sounds too good to be true, it probably is. - Do independent research before sending money or private information to any individual or organization. Look them up directly rather than clicking links in unsolicited messages. - Monitor your bank and credit card statements. Report anything suspicious right away. - Consider signing up for free fraud alerts on credit reports.

<On the slide:>

A list of common types of scams:

• Phishing
• Service
• Extortion
• Bank Investigator
• Mail Scams
• Romance
• Loan

Tip: Financial institutions and government agencies will never text or email you asking for passwords, PINs or account numbers.

<End slide>

Unforeseen life events like death, illness, or disability could be devastating without the right financial safeguards. Insurance can provide protection so families can stay financially secure even in difficult times. Life insurance can help loved ones be provided for in the event of an unexpected death. It can ensure that a family's primary breadwinner's income is replaced.

Other expenses can also be covered. Health insurance can help cover large medical bills. This includes long-term care or critical illness insurance. Serious illnesses or disabilities may cause unexpected medical costs. Without insurance, these costs could use up savings that were meant for retirement or a child's education. Disability insurance replaces a portion of lost income if an illness or injury prevents someone from working. Without this protection, families may struggle financially from the loss of income.

<On the slide:>

3 sections:

1. Financial protection – Life insurance:

• Term – protection for short-term needs
• Permanent – protection for long-term needs

2. Financial protection – Health insurance:

• Long-term care
• Critical illness
• Disability
• Health & Dental
• Accidental death & dismemberment

3. Financial protection – Other:

• Property insurance (house, condo, apartment)
• Vehicle insurance
• Emergency account
• CPP/QPP disability benefit
• Workplace coverage

<end slide>

We encourage you to take action! If you haven't already, create a budget and set savings goals. Protect yourself from scams and fraud, and further protect your finances by building an emergency fund and considering insurance. Be sure you're maximizing your workplace savings plan. Seeking professional guidance and support can help you achieve your goals and stay on track.

<On the slide:>

4 columns

1. Plan:

• Set savings goals and priorities
• Create a budget
• Consider your investment strategy

2. Protect:

• Against fraud
• Emergency savings
• Insurance protection

3. Maximize:

• Maximize your group plan advantages
• Compound growth – get time on your side

4. Book:

• Book appointment(s) for professional guidance and support
  • Banking
  • Investments
  • Taxation
  • Legal

<End slide>

Thanks for watching. We hope we've provided useful information and raised some questions for you to further explore.

<On the slide:>

Thank you! The information provided is of a general nature and can not be construed as personal financial or legal advice. Neither Sun Life or its affiliates guarantees the accuracy or completeness of any such information. This information should not be acted on without obtaining counsel from your professional advisors, including a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec) as may be applicable to your individual situation.

Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies.

<End slide>

Welcome to our session on 5 steps to boost your financial health. Many people worry about money. Today, we'll discuss 5 simple steps to help you boost your financial health and feel less stressed about money.

To start improving your financial situation, first look at where you stand now.

How you're doing financially includes items such as:

• How much you've saved,
• How much debt you have compared to your spending money,
• How much insurance you have, etc.

 If you're doing well with your debts, house payments, and saving for retirement, that's great! If you're having some trouble, don't worry. You can take steps to get better with money in order to help you reach your goals.

<On the slide:>

TITLE: Step 1: Assess your current situation: Are your finances healthy? Have you created financial goals for the future?

• Do you have a budget?
• Is your net worth positive or negative?
• Do you know your Credit Score?
• Do you have a valid will?
• Are you properly insured?

<End of slide>

Ultimately, the 5 steps we’re talking about today, if followed, will result in a financial roadmap.

This roadmap can help you to:

1. Decide what's most important for your money,
2. See the big picture of your finances,
3. Worry less about money,
4. Organize your money better, and
5. Understand how to save for what you want.

But a financial roadmap isn't just about saving. It's also about having a better relationship with money. To do this, think about what you want in life. Social media can make you want to copy what others are doing. Instead, take a moment to ask yourself: "What does being good with money mean to me? How do I want that to look in my life?" This way, you're making choices that fit your own life, not someone else's.

Only you know what you really want for your future. Money goals can sometimes seem far away or hard to reach. Saving isn't just about watching your accounts grow. Setting clear goals helps you stay motivated and focused on what's most important.

Just like you'd carefully plan a home renovation, put thought into planning your money and retirement. It's not enough to say, "I want to retire early." You need to think about what you really want your life to be like. Once you know that, you can make smart choices about how to invest, save, and spend your money to reach those goals. Everything works together to help you get the future you want.

<On the slide:>

TITLE: Step 2: Create goals, Define your priorities.

Where are you now?

Where do you want to be?

How will you get there?

<End of slide>

When you make goals, it's important to think about what you want to do in the short term as well as what you want to do later. This helps you prioritize. Short-term goals are things you want to do soon, usually within a few months or years. For example, you might want to save some money for emergencies or for a trip. Long-term goals are big things you want to do in the future, maybe many years from now. These often need more money and time to achieve them. For example, you might want to save money for retirement, or to pay off your house. Sometimes, goals can be both short-term and long-term. It depends on your situation. For example, buying a car or saving a down payment for a home could be either, depending on how soon you want to do it.

<On the slide:>

Short term:

• Build an emergency fund
• Pay off credit card debt and student loans
• Build a fund for minor repairs and home improvements
• Save for travel
• Save for a wedding

Long term:

• Save for retirement
• Pay off your mortgage
• Start a business
• Save for children’s education

<End of slide>

S.M.A.R.T. goals help you plan better. They have five parts that help you focus and re-evaluate as needed. S.M.A.R.T goals are:

1. Specific: meaning the goal is clear and easy to understand.
2. Measurable: You can track your progress with numbers.
3. Achievable: The goal is realistic and possible to reach. Setting lofty goals is OK, but you’ll likely want to break them down into smaller, bite-sized chunks in order to actually get there. 
4. Relevant: The goal matters to you and fits your life plans.  If a goal isn’t personally relevant, it’ll be hard to maintain the focus and energy required to achieve it.
5. And, the goal is Time-based with an actual deadline to finish.

After you figure out what you want to achieve, you need to decide what's most important. Think about your current situation. And consider which goals you should work on first. Think about how your goals might affect other parts of your life. Are there any special things you need to keep in mind?

A budget can help with this. It's a plan that shows how much money you have coming in, how much you're spending, and what you want to do with your money in the near future and later on.

When making a budget, it's really important to know the difference between things you need and things you want. Things you need are essential, like a place to live, food, and medicine. Things you want are nice to have but not necessary, like eating out, going on trips, or buying fancy clothes. What counts as a need, or a want can be different for different people. It can also change over time as your life changes.

You'll probably have some short-term and some long-term goals. Start by fitting your goals around your regular expenses, focusing on needs like food and housing. It's usually a good idea to prioritize saving for emergencies and retirement. Paying off debt is also often very important. But what goals are right for you will depend on your individual circumstances and priorities.

<On the slide:>

TITLE: Step 3: Prioritize your goals. What is a budget?

A guide to spending your money

Lays out your income and expenses 

Considers your short and longer-term goals

Online tools, spreadsheets or good old-fashioned pen and paper all work.

<End of slide>

<On the slide:>

How to prioritize your goals

<End of slide>

To decide what's most important to you, ask yourself either/or questions about your goals. Put your answers in order from most to least important, like a pyramid. Compare all your goals to each other to find the top ones and focus on those.

This might seem limiting at first because you might be like many others and “want it all!”  In reality, while you might achieve many goals in your life, you probably can't do them all at once.  Being decisive and honest is key. You’ll need to be clear about what you really want and need in order to achieve your goals.

<On the slide:>

A list of 4 questions:

1. Money or time?
2. Travel or stability?
3. Learning or creating?
4. Family or self-cultivation?

<End of slide>

We've used mostly non-money goals as examples on purpose, so you can see how goal prioritization can apply to many areas of life, but you can use this method for money goals too. For example, you might ask:

• Do I want to pay off debt or save for something specific?
• Do I want to rent or buy a home?
• If I'm going back to school, should I go now and borrow money, or wait and save up first?

Once you've set your priorities, it's time to take action.

<On the slide:>

TITLE: Step 4: Act on your plan

<End of slide>

Try to pay yourself first.  To do this, make saving a regular part of your budget, just like any other bill. Set up automatic savings through your job or bank to make it easier. Everyone's money situation is different; how much you should save versus paying off debt depends on your income, expenses, and the type of debt you have.

<On the slide:>

There is no one rule. Some people have a savings plan through their employment.  Some people have low-interest debt payments.

<End slide>

If you don't have one, start building an emergency fund. Aim for 3-6 months of expenses. Even saving $10 or $20 a week helps. Set up automatic transfers to a separate, easy-to-access account.  It's better to use savings than credit cards or loans for emergencies. Credit cards have high interest rates if you don't pay in full each month. Lines of credit might have lower rates, but you still have to pay them back with interest.

During tough times, it's okay to reduce or pause your savings. Paying bills should come first. When things improve, you can start saving again.

Remember, small steps add up. Start where you can and adjust as needed.

Part of your action plan may include paying down debt.  If so, you've got a few options to choose from.

First, there's the avalanche method. This is all about tackling your highest interest debt first. You focus on paying off the debt with the biggest interest rate, then move to the next highest. This way, you'll save money on interest in the long run.

Then there's the snowball method. This is about starting small and building momentum. You pay off your smallest debt first, then move to the next smallest. It's great for quick wins that keep you motivated.

Another option is debt consolidation. This means taking out one big loan to pay off all your smaller debts. You end up with just one monthly payment, often at a lower interest rate. This can save you money and help you pay off your debt faster.

Choose the method that works best for you and your situation. The important thing is to have a plan and stick to it. And, whichever method you choose, be sure to make the minimum payments on all your debts each month.

<On the slide:>

Nothing grows your money like time

<End of slide>

Once you've got your debts under control, it's time to think about saving for the future. Many Canadians use RRSPs to save on taxes and prepare for retirement. You might also have a TFSA or a pension plan.

When choosing where to save, ask yourself: "What am I saving for? Is this a short-term or long-term goal?" These questions can help you pick the right account.

An important concept to understand is the time value of money. Simply put, it means start saving as early as you can. It works because of compound growth - your money grows on top of itself over time. Starting early also means you can save smaller amounts each month, which can be easier on your budget.

The example on the slide compares two people saving $200 a month. One starts at age 29, the other at 39. The person who starts earlier not only saves for 10 more years, but their money also has more time to grow. This results in a much larger savings account compared to the person who waited 10 years to start. So, remember, when it comes to saving, earlier is better!

<On the slide:>

Pay yourself first by making regular contributions. Every little bit helps. Assumptions for Rate of return: 29-year old | Saving $200 a month | Starting now instead of in 10 years

<End of slide>

<On the slide:>

TITLE: Step 5: Keep your finances healthy

<End of slide>

Did you know that healthy finances can lead to a healthier you? Money worries in Canada are at an all-time high. With prices going up and basic needs getting harder to afford, it's no surprise people are stressed.

A recent study* shows that money is still the biggest worry for Canadians. The study found that:

• Money stress is causing anxiety, depression, and mental health problems.
• Almost half of Canadians are losing sleep over money worries.

But there's some good news too*. Even though people are still worried about money, they're feeling more hopeful about the future, and are taking steps to improve their financial health and reduce stress.  So, while times are tough, many people are working hard to take control of their finances and feel better about their money situation.

<On the slide:>

There is a bar chart that shows money stress, mental health impacts and lost sleep have trended upwards from 2023 to 2024.  But, so has optimism.

*Source: 2025 Financial Stress index: https://www.fpcanada.ca/2025-financial-stress-index

< End of slide>

Part of keeping your finances healthy is protecting your money and identity by being smart about fraud.

Here are some simple tips:

• Be careful with your personal info.
• Don't give out things like passwords or bank details to people who contact you out of the blue.
• Use strong passwords and extra security steps when you can. This makes it harder for scammers to get into your accounts.
• If something seems too good to be true, it probably is.
• Be suspicious of surprise lottery wins or inheritances, especially if they ask for money upfront.
• Do your own research before sending money or personal information to anyone. Look them up yourself instead of clicking on links they send you.
• Keep an eye on your bank and credit card statements. If you see anything weird, report it right away.
• Stay alert and trust your gut.

These simple steps can help keep your money and identity safe.

<On the slide>:

A list of 7 common types of fraud:

• Phishing
• Extortion
• Grandparent schemes
• Artificial Intelligence
• Mail scams
• Romance scams
• Elder abuse

It also shows a tip: Financial institutions or government agencies will never text or email you asking for passwords, PINs or account numbers.

<End of slide>

In addition to growing your money, you may also wish to consider protecting it.  Life can throw unexpected challenges our way, like serious illness or accidents. These can really hurt your finances if you're not prepared. That's where insurance comes in. It's like a safety net for your family's money.

Life insurance helps your loved ones if something happens to you. It can replace your income and cover expenses.

Health insurance is there for big medical bills. It can help with long-term care or serious illnesses, so you don't have to use up your savings.

Disability insurance gives you some income if you can't work due to illness or injury. This helps keep your family afloat financially.

Remember, insurance isn't just an expense – it's protection for your family's future.

<On the slide:>

There are three groups of protection:

1. Financial protection: Life insurance

• Term – protection for short-term needs
• Permanent – protection for long-term needs

2. Financial protection: Health insurance

• Long-term care
• Critical illness
• Disability
• Health & Dental
• Accidental death & dismemberment

3. Financial protection: other

• Property insurance (house, condo, apartment)
• Vehicle insurance
• Emergency account
• CPP/QPP disability benefit
• Workplace coverage

<End of slide>

No matter how old you are or what your family looks like, taking care of your financial health also means thinking ahead. This includes planning what happens after you're gone.  This may include Wills, Power of Attorney Documents, Mandates in the province of Quebec, and beneficiary designations. Getting these items in order is a smart way to protect yourself and your loved ones.

<On the slide:>

TITLE: Have your estate planning in order

Will:

• Instructions on how your estate will be distributed
• Update every 3 to 5 years

Power of attorney:

A legal document that allows another person to act for you

• financial decisions
• health-care decisions

Beneficiary designations:

• Any person (or organization) you name to receive your assets upon your death 
• Review regularly and update as life changes

<End of slide>

In summary, how you handle your money matters a lot in life. Getting good with money takes time, but the basic steps are pretty simple. So, what should you do if you’re ready to take action?

First, make a budget and set some savings goals. Build up an emergency fund and think about getting insurance. If your job offers a savings plan, use it as much as you can. Watch out for scams and protect your money. And don't be afraid to ask for help. Talking to a financial professional can keep you on track and help you reach your goals.

<On the slide:>

TITLE: Take Action.

The slide has 4 sections:

Plan

• Assess your current situation
• Set savings goals and priorities
• Create a budget

Protect

• Against fraud
• Emergency savings
• Insurance protection
• Estate documents

Maximize

• Maximize your group plan advantages
• Compound growth – get time on your side

Book

• Book appointment(s) for professional guidance and support
• Banking
• Investments
• Taxation
• Legal

<End of slide>

Thanks for watching. We hope this was helpful and got you thinking about your financial health. Remember, even small steps can make a big difference. So why not start today?

<On the slide:>

The information provided is of a general nature and can not be construed as personal financial or legal advice. Neither Sun Life or its affiliates guarantees the accuracy or completeness of any such information. This information should not be acted on without obtaining counsel from your professional advisors, including a lawyer, notary, tax professional, or advisor (registered as Financial Security Advisors in Quebec) as may be applicable to your individual situation.

Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies.

<End of slide>

On behalf of Sun Life, welcome to this session where we’ll discuss the connection between your health and your wealth.

It’s important to acknowledge and understand that physical, mental and financial wellness is integrated. Mental health and chronic physical disease are not only closely linked they’re actually intertwined. Excess stress, including financial stress, can contribute to chronic physical illness such as high blood pressure, hardening of the arteries, diabetes and obesity, and can also lead to other mental health problems.

<On the slide>

A ven diagram showing Wellness at the centre and Financial, Physical and Mental as the overlapping circles. <End slide>

Financial stress in Canada has reached a tipping point. With rising inflation, basic needs becoming increasingly unaffordable, and overarching economic instability, it’s no wonder why.

FP Canada’s 2024 Financial Stress Index reveals that personal finances, at 44%, is the top stressor for Canadians. The study also shows that keeping your finances healthy can help keep you healthy!

While many of us think of our physical health and can easily understand how our behaviours can both positively and negatively affect it, it may not be as obvious how important factoring physical health into financial planning can be.

Almost half of Canadians have experienced a health event which affected their personal finances. One in three Canadians are experiencing mental health challenges related to financial stress. And 7 in 10 Canadians do not retire as planned, with the number one reason for that being personal health.

<On the slide>

A circle chart. 7 in 10 Canadians do not retire as planned. #1 reason is personal health. Almost 1/2 of Canadians have experienced a health event which affected their personal finances. 1 in 3 Canadians are experiencing mental health challenges related to financial stress. <End slide>

Lifestyle can heavily influence overall health and impact how long we live.

• 1 in 4 adults are considered to be obese
• 4 in 5 do not achieve the recommended 150 minutes of moderate to vigorous physical activity weekly
• 3 in 5 do not eat the recommended daily serving of fruits and vegetables
• And 1 in 4 report high levels of life stress, which can lead to unhealthy lifestyle choices in response

From a financial perspective, we live in an age of instant gratification and available credit.  Unhealthy lifestyles can also include money management problems. Money, if not managed well, adds to stress levels, which in turn can affect physical and mental health.

 <On the slide>

Source: Chronic Disease Bright Paper 2016 <End slide>

Mental health and financial well-being are two important aspects of our lives that are often viewed in isolation from each other. However, the truth is that these two elements are deeply intertwined and play a crucial role in determining our overall health and happiness.

Stress is a big threat to both our mental health and financial well-being. Stress clouds our judgment and can lead to impulsive decisions that can have damaging consequences on our finances.

Making good financial decisions is harder when our mental health is challenged, as we can be more prone to impulse purchases, not paying bills on time or not setting aside enough money to build up our savings.

The physical tolls of stress, such as insomnia and fatigue, further compound the problem.

And today’s economic climate can pile on an additional layer of stress that can significantly impact our mental health. Struggles to meet expenses and save for the future can evoke feelings of anxiety and depression. Throw in a volatile stock market and the stress can cause even the most seasoned investor to act out of fear.

<One the slide>

Source: https://www.forbes.com/councils/forbesfinancecouncil/2023/03/14/the-connection-between-financial-well-being-and-mental-health/  <End slide>

Self-care is key to both mental and financial well-being. When we take care of our physical and mental health, we can in turn make better financial decisions and manage our finances with greater confidence. Nurturing physical health with exercise, meditation and hobbies can help us reduce stress, improve our focus and maintain our mental and emotional balance. So can cultivating connections with individuals who support and encourage you, as positive relationships play a vital role in human well-being.

From a financial perspective, it’s important to set realistic and achievable financial goals, and regularly track your progress. Celebrate your successes and learn from setbacks. Keep in mind that achieving your desired outcomes might take time but recognizing the interplay between financial well-being and mental and physical health is an important step on the integrated health journey.

<On the slide>

Source: https://woodgundyadvisors.cibc.com/alexandra-stadnyk/blog/33155178-From-Wealth-to-Well-Being-The-Interconnection-Between-Financial-Well-Being-and-Mental-Health <End slide>

There are 3 simple ways you can increase your financial wellness.

First, is having a plan!  A financial roadmap is a practical way to boost your financial wellness.

Second, take a moment to reflect on your short, medium and long-term goals. Think of financial wellness as more than just preparing for retirement. Money-related stress is a widespread issue that can affect you both at work and at home, at any point in your career, including the basic tasks of day-to-day budgeting and saving for shorter-term goals.

Lastly, learn as much as you can! A Statistics Canada 2016 report found that only 31% of women and 43% of men consider themselves “financially knowledgeable.” An easy way to increase your knowledge is by attending webinars and watching recordings such as these.

Having regular discussions with your financial planner can also help you build your knowledge.

It’s important for Canadians to save for their retirement but a financial roadmap goes further than that.  It looks at finances holistically and considers:

• Money management
• Retirement planning
• Investing, and
• Financial protection.

Let’s take a minute to review some money management tips.

Try to pay yourself first. To do this, make saving a regular part of your budget, just like any other bill. Set up automatic savings through your job or bank to make it easier. Everyone's money situation is different; how much you should save versus paying off debt depends on your income, expenses, and the type of debt you have.

If you don't have one, start building an emergency fund. Aim for 3-6 months of expenses. Even saving $10 or $20 a week helps.

Set up automatic transfers to a separate, easy-to-access account.

It's better to use savings than credit cards or loans for emergencies. Credit cards have high interest rates if you don't pay in full each month. Lines of credit might have lower rates, but you still have to pay them back with interest.

During tough times, it's okay to reduce or pause your savings. Paying bills should come first. When things improve, you can start saving again. Small steps add up. Start where you can and adjust as needed.

<On the slide>

There is no one rule. Some people have a savings plan through their employer. Some people have low-interest debt payments. <End slide>

The sources of retirement income in Canada can include government programs such as Canada Pension Plan, Quebec Pension plan, Old Age Security and the Guaranteed Income Supplement. As these programs are designed to only replace a portion of pre-retirement income, sources of retirement income will also often include company retirement plans, personal savings such as RRSPs, TFSAs and other savings, or assets. Understanding how much income you can expect from each of the sources you’ll be drawing from, and the risks and opportunities associated with each, is an important component to your retirement planning.

<On the slide>

RRSP = Registered Retirement Savings Plan. TFSA = Tax-Free Savings Account. <End slide>

A very basic understanding of how inflation, time and taxes can affect your investing strategy will also help you, as you’ll be able to make better-informed investment choices.

In addition to growing your money, you may also wish to consider protecting it. Life can throw unexpected challenges our way, like serious illness or accidents. These can really hurt your finances if you're not prepared. That's where insurance comes in. It's like a safety net for your family's money.

Life insurance helps your loved ones if something happens to you. It can replace your income and cover expenses.

Health insurance is there for big medical bills. It can help with long-term care or serious illnesses, so you don't have to use up your savings.

Disability insurance gives you some income if you can't work due to illness or injury. This helps keep your family afloat financially.

Remember, insurance isn't just an expense – it's protection for your family's future.

<On the slide>

3 sections.

Section 1: Financial protection – Life insurance: Term – protection for short-term needs. Permanent – protection for long-term needs. Section 2: Financial protection – Health insurance: Long-term care, Critical illness, Disability, Health & Dental, Accidental death & dismemberment. Section 3: Financial protection – Other: Property insurance (house, condo, apartment), Vehicle insurance, Emergency account, CPP/QPP disability benefit, Workplace coverage. <End slide>

In summary, how you handle your money matters a lot in life, and it can have impacts on your physical and mental wellness.

We encourage you to check out the various articles, tips, tools and calculators on sunlife.ca. From health & wellness to money and finances, there’s something for everyone. 

We also encourage you to consider talking to a financial professional. They can help you to create a balanced and healthy financial roadmap that considers your physical, financial and mental well-being.

<On the slide>

Thank you! The information provided is of a general nature and can not be construed as personal financial or legal advice. Neither Sun Life or its affiliates guarantees the accuracy or completeness of any such information. This information should not be acted on without obtaining counsel from your professional advisors, including a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec) as may be applicable to your individual situation. Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies. <End slide>