Essential financial wellness

As a Sun Life group plan member, you have access to several online and mobile tools. 

Depending on which plan, or plans, you have with us, these tools can help you:

• manage your group benefits plan,
• make important decisions regarding your group retirement savings and investments, or
• both of the above.

This is a playlist. You can either watch the full recording, or you can pick and choose the topics that appeal to you.  To watch the full playlist, you don’t need to do anything.  The recording will play all of the sections.   To skip, or move between topics, use the menu on the right-hand side of the screen.  Just click the topic, or topics, that interest you in whichever order you’d like.  Please note that you won’t be able to see the playlist if you’re in full-screen mode.

To use the online tools, you first need to register for our website. You would have received welcome materials on how to register, but that may have been awhile ago.  Don’t worry - it’s easy!  If we have your email on file, you’ll just need to choose your password and verification questions. That’s it! If we don’t have your email on file, you can use your banking information to verify your identity. Or, you can use the account number from your welcome letter or statement, along with your date of birth, and postal code to get set up.  You can also register on the my Sun Life mobile app.  It’s the easiest way to manage your plan on the go!

<On the slide:>

How do you set up a mysunlife.ca account?

1.  Fill out the online form.

1. Register with the same email address you gave your employer.
2. Check for a confirmation email and follow the steps!

You can also register on the my Sun Life mobile app. Download on Google Play or the Apple App Store. <End slide>

The Sun Life plan member website is mysunlife.ca.  Another way to connect with us is through the “my Sun Life” mobile app.

Use the menu on the right-hand side of the screen to watch demos of the website or mobile app.  We’ve split the demos into website and mobile app.  And we’ve further split them between benefits and investments.  That way you can really focus on the section, or sections, that are most applicable to you.

<On the slide:>

Benefits

• Benefits Centre
• Submit a claim
• Coverage information
• Coverage Card
• Drug Look up
• Lumino Health Centre

Investments

• Payroll contribution calculator
• Sun Life One Plan
• Asset allocation tool
• Morningstar
• Change investments
• Designate beneficiaries <End slide>

<On the slide:>

Thank you!

The information provided is of a general nature and cannot be construed as personal financial or legal advice. Neither Sun Life nor its affiliates guarantees the accuracy or completeness of any such information. Don’t act on this information without obtaining advice from a professional, such as a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec), as may be applicable to your individual situation.

 Workplace benefits, savings and investments are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies.  <End slide>

The Sun Life plan member website is mysunlife.ca. It has many tools to help you feel more confident about your savings and investments.

It’s always a good idea to regularly review your investment mix, financial goals and investment risk tolerance. Let’s review the key tools to help you stay on track to reach your investment goals.

The investment section of the website starts with a list of any existing plans you may have with Sun Life, and their balances.  Under the “Manage plan” you can find tools and resources to help you enrol and manage your plan.  If you’re enrolling for the first time, you’ll want to do that.  Otherwise, select “my plan”.

Navigating the site is easy.  By positioning your mouse on one of the tabs at the top of the page, drop-down menus appear. 

The “my plan” page is part of the Plan Overview tab.  It provides details on the products you’re enrolled in, and any products that you’re eligible to enrol in. 

The Plan overview tab also provides access to information about the investments that are available to you.  This includes past returns and fund management fees.

The next tab is Check on account.  This is where you can find details on each of your accounts such as:

• balances,
• transaction history, and
• investment performance.

The Make a change tab is where you go to make changes such as:

• changing your investments,
• managing your beneficiaries, or
• making withdrawals, if they’re permitted under the rules of your plan. 

If you have optional products available, you can also Enrol.  Just select Enrol from the drop-down menu and follow the prompts.

Put Money In is where you can manage your contributions.  Depending on the rules of your plan, this could include:

• adjusting your payroll contributions,
• making a lump-sum contribution, and
• transferring assets into your workplace plan.

Documents is where you can find your account statements, your tax slips and contribution information.  There’s also a list of forms that may be helpful in managing your account.

The Learning tab has educational items, including videos, to help you better understand and manage your plan.

Tools is where you can find many useful resources to help you plan and manage your investments.  There are 3 sections available for review.   The “Tools & calculators” section has a variety of tools including:

• The Budget calculator, which can help you manage your spending.
• The Withdrawal calculator, which illustrates the impact of a withdrawal today on your future retirement savings, and
• The Payroll contribution calculator.  This tool shows you the effect of payroll deductions on take home pay.  When you contribute to a Registered Retirement Savings Plan or Defined Contribution Pension Plan, your contributions are tax-deductible. This means any amount you contribute within your personal deduction limit is deducted from your income for tax purposes.  You pay lower income taxes as a result.  Contributions made via payroll deductions receive immediate tax savings.  This calculator can show you the tax savings.  It can also show you the potential growth of your contributions over time. Use this tool to help you decide how much to regularly save in your workplace plan.

Sun Life has a very important tool called “Sun Life One Plan.”  It can help you assess whether you’re on track to achieve your retirement goals. There are two different ways to plan with One Plan.  You can start with a quick plan and then decide if you want to stop there.  Or, you can skip ahead and go directly to do more detailed planning.

To create a quick plan in 5 minutes or less, you can use the Retirement Planner.  It provides an estimate of how you’re tracking towards retirement. You can compare the estimates to your retirement income goal. If there’s a gap, you can adjust some of the variables to help you reach your goals. Later, if you want to plan in more detail, you can build on top of your quick plan by using the One Plan full assessment tool.

If you decide you want to start with a more detailed plan, within the Retirement Planner you can skip forward and go directly to the One Plan full assessment tool. With full plan, you can enter detailed information on a household basis, and create a customized report. The tool will generate a series of strategies for you to consider. One plan will also create asset and income illustrations for your years of saving and withdrawing.

The Asset allocation tool helps you choose the right investment mix based on your financial goals and risk tolerance.

This tool takes you through an Investment Risk Profiler.  You’ll answer a series of multiple-choice questions about your comfort with risk, your investment time horizon and your investment knowledge.

At the end of the survey, the tool will show you your target investment profile.  It will provide you with suggestions on how to set up your portfolio.

We recommend that you use this tool every few years to gauge how your investment profile changes over time.

Once you’ve completed the Asset Allocation tool, you may wish to review your contributions and investments. If you need to make an investment change, under the Make changes tab,  click on Change Investments.

Select the applicable product from the drop-down menu, and it will take you to the next screen.  Here you can review your current instructions.  On the right is where you select if you’d like to change your future investment instructions, move just your existing money, or do both.  Most people tend to do both.  If you decide to do so, it’s important to know that these are two separate steps.

This is where we’ll end our demo for today.  If you have additional questions, we’d be happy to help.  Please refer to your welcome material or statement to find out how to connect with us.

Thanks for taking the time to listen today. We encourage you to discover all the tools available to help you make the most of your workplace plan.

<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>

The “my Sun Life” mobile app has many tools to help you feel more confident about your savings and investments.  In this presentation, we’ll walk you through some of the most commonly used investments features on the app.  You can use the same information to sign in to the app that you use to access the website.  If you prefer to register for access through the “my Sun Life” app first, you can do so. While the app doesn’t provide access to every tool that is available on mysunlife.ca, it’s the easiest way to manage your money on the go!

The first thing we’ll do is start by signing in to the app.  You can do this with either touch or face ID, depending on your phone. 

Once you’ve signed in, you’ll land on the Home tab and have a total plan overview, which allows for quick access to recent transactions.  You’re also able  to access your investment accounts via the Wealth icon along the bottom of the screen.    If your group benefits or personal health insurance are also with Sun Life, you’ll see them here.  Even if they’re not, you’ll see a Health option where we’ve provided you with access to a Health assistant.

There’s a Health Care provider search, a Drug lookup feature, access to Fitness & wellness information and more. And if you have personal Protection policies, such as Life Insurance or Critical Illness coverage, you’ll have access to those via the Protection button.   

This demo will focus on the Wealth features of the app.  But we do encourage you to explore the health section as well.

In the Wealth section, you can view details of your workplace retirement and savings plans. If you’ve purchased any mutual fund or segregated fund accounts from a Sun Life advisor, you’ll be able to view those, too.  The workplace plans show at the top, with the personal plans surfacing below.

Available for review are products, balances and rates of return.   For product specific information, select a product, for example the Defined Contribution Pension Plan.  The balance, the Rate of Return and the Opening balance will show. 

You’ll also have access to a number of tools.  Depending on the rules of your plan, this could include:

• transferring assets into your workplace plan,
• changing your investments,
• adjusting your payroll contributions,
• making a one-time contribution, and
• managing your beneficiaries.

Scroll down to see your current funds, fund balances, and their rates of return.

Other main action items are available by clicking the yellow Wealth Actions button on the right.  This button helps you quickly access the most commonly used features of the app, including Making a contribution and accessing your statements and documents.

Let’s scroll back up to change investments.  Select the product you’d like to make changes to. If you’ve completed the Asset Allocation tool, your risk profile will surface.  So will your projected retirement age and year, as calculated by our Retirement Planner.  Your current investment instructions for your and, if applicable, your employer’s contributions will surface.  You’ll be able to change your future investment instructions, move just your existing money, or do both. 

Most people tend to do both.  If you decide to do so, it’s important to know that these are two separate steps.  You’d click first on change your  investment instructions, and follow the prompts.  Then come back through and click Move your existing money, and follow the prompts.

For the purpose of the demo, we’ll exit the Change Investment section.  Clicking Done in the upper left corner will bring us back to the Wealth home screen.

We’ll go back into the DCPP and from the Overview, we’ll scroll down to Your contributions.   When we select this, again depending on the rules of your plan, different options will surface. These may include :

• setting up a lump sum contribution from your bank account, which can be either one-time, or recurring.
• managing your lump sum contributions, and
• reviewing your ongoing payroll contributions.

You can set up, edit, or delete your contributions on the app, provided your plan rules permit the changes.

The final area we’ll explore is Manage your beneficiaries. As with the other sections we’ve just explored, you can reach this in the Overview section of a product.

The section will show the beneficiaries you’ve designated, if any, and the percentage allocated to each.  You’re able to make changes, so long as your plan and the type of beneficiary designation you’ve made, allows for this.  At the top of the page there’s a Helpful terms section, as well as an Important information section.  It’s a good idea to review these sections from time to time.  And to look up any terms that you might not be familiar with.  At the bottom of the page you’ll also find a link to a Beneficiary FAQ. 

Back on the main Wealth screen, by scrolling down you’ll find links to Tools & Calculators, as well as interesting articles.  We encourage you to check out all the app has to offer.

You can also connect  with us easily, by clicking on the phone icon in the upper right and following the prompts.  You can chat with your digital coach Ella 24/7, or reach out for phone support.  The good news is you’re already authenticated, so getting help is quick and easy!

This is where we’ll end our mobile demo for today.  If you have additional questions, we’d be happy to help.  If you haven’t registered for the app yet, please refer to your welcome material or statement to find out how to connect. 

Thanks for taking the time to listen today. We encourage you to discover all the tools available to help you take care of your workplace plan.

The Sun Life plan member website is mysunlife.ca.  It has many tools to help you manage your group benefits plan. Let’s review some of the most used tools on the benefits side of the site. This includes where to submit a claim and how to print a coverage card.

The benefits section of the website starts with a series of boxes at the top of the section. These are the most common requests, or action items, surfaced here in a quick, and easy to use format.  You can click any of the boxes to go directly to that section of the website.  Or you can use the menu on the right-hand side of the page.  If you need to enrol, and are eligible, do that as your first step.  Otherwise, select “Benefits centre.”

Navigating the site is easy.  By positioning your mouse on one of the tabs at the top of the page, drop-down menus appear. 

Typically, you’ll want to see coverage information, which is available under the “Coverage” tab.  The specifics of what is available will depend on your plan design.  Items such as Medical coverage, Drug coverage and Travel benefits will show here.  This includes looking up your drug coverage details, your current prescriptions and costs as well as drug alternatives.  This is also where you’d go to submit a drug exception request. 

The most common action is submitting a claim.  You can do this under the “Claims” tab.  This is also where you can:

• review a claim statement,
• review your claims history, and
• submit any outstanding claim documents.

You can access the “Lumino Health Centre” through the tab of the same name.  It’s also under the “Lumino Provider Search” tab.  And via the “Take me to…” section on the right-hand side of the page.

With Lumino Provider Search, you can enter your location to find dentists, massage therapists, mental health professionals and other health-care providers in your area.

The “Take me to…” section also surfaces other common actions.  Items such as submitting a claim, coordinating benefits with a spouse, or accessing claims statements are easily accessible from this section.  In today’s day and age though, most people use the mobile app to perform these tasks.  Even printing a drug or travel card, is something you no longer have to do.  If you have our mobile app downloaded the card will be on your phone. 

This is where we’ll end our website demo for today.  Consider exploring the site, if you’re not yet familiar with it.  If you have questions, we’d be happy to help.  Please refer to your welcome material or statement to find out how to connect with us. 

 Thanks for taking the time to listen today. We encourage you to discover all the tools available to help you make the most of your workplace plan.

<On the slide:>

Thank you!

The information provided is of a general nature and cannot be construed as personal financial or legal advice. Neither Sun Life nor its affiliates guarantees the accuracy or completeness of any such information. Don’t act on this information without obtaining advice from a professional, such as a lawyer, notary, tax professional, or financial advisor (registered as Financial Security Advisors in Quebec), as may be applicable to your individual situation.

 Workplace benefits, savings and investments are provided by Sun Life Assurance Company of Canada, a member of the Sun Life group of companies.  <End slide>

The “my Sun Life” mobile app has many tools to help you manage your group benefits plan.  In this presentation, we’ll walk you through some of the most used benefits features on the app.  This will include submitting a claim and how to view your coverage cards.

You can use the same information to sign in to the app that you use to access the website.  If you prefer to register for access through the “my Sun Life” app first, you can do so. 

If you haven’t downloaded the app yet, we encourage you to do so.  It’s the easiest way to manage your benefits on the go!

The first thing we’ll do is sign-in to the app.  You can do this with either touch or face ID, depending on your phone.  Once you’ve signed in, you’ll land on the Home page and have a total plan overview.  You’re also able  to access your Health and/or benefits information  via the Health icon along the bottom of the screen.  If you have group savings or personal investments with Sun Life, you’ll find a Wealth option here. And if you have personal Protection policies, such as Life Insurance or Critical Illness coverage, you’ll have access to those via the Protection button.  For the purpose of this demonstration, we’ll assume your Group Benefits are with Sun Life.  Even if they weren’t, you’d still see a Health option where we provide access to a Health assistant. It provides a Health Care provider search and access to Fitness & wellness information.  

In the Health  section, as soon as you’re on the page, recent claims will surface.  If you have any, you’ll be able to see completed claims and claims that are in process.  Other main action items are available by clicking the yellow Health Actions button on the lower right.  This button helps you quickly access the most commonly used features of the app, including Start a claim, Coverage cards, and access to the Lumino provider search via the Find a health-care provider icon.  .  You can also look up a Drug, Submit an estimate, and submit documents, all in one easy to find and use location.  

We’ll start with Coverages & balances, which you scroll down to view. 

Depending on the coverage available under your plan, this section will give access to details on:

• medical,
• vision,
• drug coverage,
• health & personal spending accounts, and
• disability coverage.

Details are easily available in multiple ways.  The section includes a search function, a View all coverages button, and common coverage types, Simply click into any of the sections for more information, including:

• the full coverage available under your plan, and
• the amount of coverage still available to you, for the benefit period.

Below Coverages & balances you’ll find access to our Lumino provider search.  You can enter your location to find dentists, massage therapists, mental health professionals and other health-care providers in your area.  You can save your favourites.  Or, use the search function to find a particular specialty nearest to your location. This can be helpful if you’re away from home and put your back out or need to find a dentist. You can use the filters and narrow down the options based on:

• location,
• most available,
• cost per visit,
• highest ratings – as rated by users of the app, and
• more. 

We’ll click the arrow in the upper left corner to return to the main Benefits screen, so we can show you how easy it is to submit a claim on the app. 

Simply select “Health Actions”  followed by “Start a claim.”  Next, we’ll select “Medical”, because in this case, our hypothetical claim is a medical claim. 

Now we select who the claim is for.  Let’s choose Mary.  When you’re submitting a claim, you’ll need to enter the claim details.  Providers that have previously been entered for this type of claim will surface.   In this case, because this is a demo, the claim information is pre-populated.    We click next and then have the chance to rate the provider.  When you do this, it helps to build our Lumino Health provider search database.  Or you can click the x in the upper left corner to continue with your claim.  On this page you’ll review the claim and select where you’d like your reimbursement deposited.  It can be deposited to your bank account, or if your Group Savings are also with Sun Life, and the plan rules permit it, you can direct the deposit to one or more of your savings accounts.  Once everything looks good select Next.  Terms and conditions will appear.  After reviewing and scrolling to the bottom of the page, select the “I agree” or “I don’t agree” button.  You’ll receive a confirmation and summary that the claim has been submitted.

We’re going to return to the home page.  Important notifications & updates from Sun Life will surface here.   For example, if you’ve submitted a claim and additional documents are needed.   You can also scroll down to view various resources. Clicking the Quick Actions button from this screen, or from the Health tab, will give you access to your Coverage cards.  No need to print them, as they’re always with you!  You can also choose to add them to your Apple Wallet.

Back on the main Health screen, by scrolling down you’ll find links to Featured Care Programs, health services, exclusive offers and interesting articles.  We encourage you to check out all the app has to offer.

You can also connect  with us easily, by clicking on the phone icon in the upper right and following the prompts.  You can chat with your digital coach Ella 24/7, or reach out for phone support.  The good news is you’re already authenticated, so getting help is quick and easy!

This is where we’ll end our mobile demo for today.  We hope you’ll explore the app and make the most of what it has to offer.  If you haven’t registered yet, please refer to your welcome material or statement to find out how to connect.  If you have additional questions, we’d be happy to help.

Thanks for taking the time to listen today. We encourage you to discover all the tools available to help you take care of your workplace plan.

Retirement is a journey and not a one-time event. Many factors and events will affect your journey. Each of us will have our own unique story. Today we'll focus on the retirement preparation phase. This starts around 10-15 years from retirement. In this phase, important things to start thinking about are: What does my retirement lifestyle look like? How much income do I need for this lifestyle? What will my retirement income sources be? Am I on track to meet my retirement lifestyle goals?

Wellness in retirement involves more than just finances.  It's important to focus on your physical, mental, and social health as well. True wellness is about quality of life and sense of well-being. This comes from maintaining good physical, mental, emotional, intellectual, and social wellness. Physical wellness includes nutrition, exercise, and ability to care for oneself. It also means having a safe and accessible living environment. Mental wellness is understanding your emotions and sharing feelings in a healthy way. It involves lifelong learning and new challenges too. Social wellness means having satisfying relationships and contributing to your community. All of these dimensions of wellness work together to improve your quality of life in retirement. Wellness is important at every stage.  Focusing on it in your retirement can help you live longer and better enjoy this next phase of life.

<On the slide:> A Venn diagram showing the interconnection between three aspects of retirement planning: Wellness in the middle, with Mental, Physical and Financial overlapping it to illustrate their interrelationship. <End of slide>

Let's meet Mae. She's single, earns $60,000 per year, and is planning for an age 65 retirement. She'll qualify to receive payments from Canada Pension Plan and Old Age Security when she retires. This won't cover all her monthly expenses. She needs to plan for where the rest of the income will come from.

<On the slide:> Investments/Savings: $500,000; Current health: Healthy <End slide>

Her income goal is 70% of her current salary, or $42,000 per year. In addition to her CPP and OAS, she'll need to draw around $25,000 per year from her savings. $5000 of this is for essential, core expenditures such as rent and groceries. The other $20,000 falls into the discretionary, or nice to have "wants" category. These are items such as vacation or dinners out. 

<On the slide:> Footnote states: Mae's CPP and OAS income is an example only, to understand the concept. <End slide>

What does Mae's story have to do with you? Nothing specifically. But her story, and the planning that she needs to do, is ultimately the whole point of this presentation. The process she has to go through is what we're all going to need to do in order to be ready for retirement. She needs to split her budget into wants versus needs. She needs to research what her government sources of income are. She needs to undertake some new learning to be able to make decisions about retirement income products. And, ultimately, she needs to pull this all together and decide on what's best for her. The good news is very few people do this alone. We watch recordings like this, we read articles, we meet with financial advisors and planners. We tap into to the resources around us, and we come up with a plan. So, let's get started on the journey.

<On the slide:>

• Defining your retirement income goal
• Retirement risks
• Sources of retirement income
• Other considerations
• Next steps <End slide>

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?

Retirement can span many years – 25, 30, or even more. Over that time, your income needs will change. This may be due to age, health, or the death of a spouse. If you have children, grandchildren, or elderly parents, this may also increase your spending. Also consider costs for home repairs or renovations, vehicle replacement and higher than expected inflation. Experts often refer to the phases of retirement as "Go-Go," "Slow-Go" and "No-Go." The exact timing of each will vary for everyone. But most of us can expect our spending to shift. Typically, we move from lifestyle and leisure towards health care and housing costs as we move through our retirement years. Completing a budget that accounts for your lifetime expenses is a key action step. Consider core items such as heat, shelter and food. Then look at your discretionary expenses such as entertainment and travel. Just like Mae did in her planning, consider splitting your expenses into needs and wants. This may assist you in making income product decisions. It may also help you determine the right retirement date, and the right date to start drawing from your various income sources.

<On the slide:> TITLE:  "Typical expenses in retirement".  The slide is organized into three columns showing how different expenses change during retirement:

1. "Stay the same (keeping in line with inflation)": Groceries, Vehicles, Property taxes, Homeowner insurance, Utility bills, Rent, Life insurance
2. "Decrease": Mortgage, savings for retirement, Retirement plan, No Canada Pension Plan (CPP)/Quebec Pension Plan (QPP), Employment Insurance (EI), Work-related expenses, Taxes
3. "Increase": Hobbies, Entertainment, Travel, Health Care <End slide>

Here are 4 common risks often discussed when talking about retirement. First – longevity. Canadians are living longer than previous generations. We all know this. But we aren't planning for it. Estimates indicate that people underestimate the number of years they are going to live by five years. Imagine five years without income. Now layer that with the fact it's likely to occur a time of additional health care and housing costs. Next, inflation. Inflation will erode what you can buy with each dollar. As time goes on, you'll be able to purchase less. And what about the markets? What happens if there's a big drop during retirement? Regular investment reviews are an important part of retirement planning. It's important to mitigate market dips when you're withdrawing retirement income. A good retirement plan also anticipates the unexpected. Whether that be unexpected expenses, changes in health, or the early death of a spouse. Saving for a rainy day and having a budget are part of security planning. So are products such as Life insurance, Critical Illness insurance and/or Long-term care coverage. These are all important topics for you to explore.

While there are clearly a lot of things to consider, generating a steady stream of income in retirement is top of mind for many. Most Canadians use a combination of government, primary and secondary sources of income in retirement. Once you've familiarized yourself with them, you'll be able to estimate your retirement income. Let's explore these now.

<On the slide:> TITLE: "Sources of income at retirement."  The slide shows three categories of income sources presented in columns:

1. "Government": Canada Pension Plan (CPP)/Quebec Pension Plan (QPP), Old Age Security (OAS)/Guaranteed Income Supplement (GIS), Allowance
2. "Primary": Company retirement program, Personal Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA)
3. "Secondary": Home, Rental property, Other savings <End slide>

Your workplace and personal savings may include many different plan types. When you're ready to generate income from them, you'll have to convert them. For registered accounts, such as a DCPP or RRSP, you must establish your retirement income accounts no later than December 31st of the year you turn 71. Broadly speaking, retirement savings plans are grouped into two categories. Locked-in and non-locked in savings. With locked-in accounts, there is a minimum and a maximum limit for withdrawals each year. For non-locked in accounts, there's only a minimum withdrawal. In the next few slides, we'll discuss the various retirement income plans that are available. Many Canadians like to use a combination of options.

<On the slide:>  The slide titled "Primary income sources (your workplace plan)" shows a comprehensive flow chart diagram with two main sections:

1. "Locked-in savings" showing the path from:
   • "Defined Contribution Pension Plan (DCPP)" with "Required contributions"
   • "Simplified Pension Plan (SPP)"
   • "Defined Benefit Pension Plan (DBPP)" which "Converts to a guaranteed pension based on formula. The pension is paid by the pension plan."
   • Options leading to "Life Income Fund (LIF)", "Keep invested", "Cash", or "Annuity"
2. "Non-locked savings" showing the path from:
   • "Tax Free Savings Account (TFSA)"
   • "Non-registered (NREG)"
   • "Registered Retirement Savings Plan (RRSP)"
   • "Defined Contribution Pension Plan (DCPP) Voluntary Contributions"
   • "Deferred Profit Sharing Plan (DPSP)"
   • Options leading to "Registered Retirement Income Fund (RRIF)", "Keep invested", "Cash", or "Annuity"

The diagram uses arrows to show the flow and conversion options between different account types. <End of slide>

A Registered Retirement Income Fund (RRIF) is an account you can establish when you want to start receiving regular retirement income from your non-locked savings. You can transfer part, or all, of your RRSP and/or non-locked pension assets into a RRIF. All amounts transferred to a RRIF remain tax-sheltered. You pay tax only on the retirement income you withdraw annually. You'll need to make ongoing investment decisions in a RRIF. If investment growth is higher than your withdrawals, the account will grow. If you withdraw more than the investments are earning, the account balance will drop. You may eventually run out of money. Each year, only minimum withdrawal rules apply. There is no maximum withdrawal limit in a RRIF, making this a flexible source of retirement income. At any time, you may transfer your assets from a RRIF to a payout annuity.

A Life Income Fund, or LIF, is an account that you can establish when it's time to start to draw regular retirement income from your locked-in savings. For example, from a Defined Contribution Pension Plan. To establish a LIF you transfer part, or all, of your locked-in savings. All amounts transferred to a LIF remain tax-sheltered. You pay tax only on the retirement income you withdraw annually. You'll need to make ongoing investment decisions in a LIF. If investment growth is higher than your withdrawals, the account will grow. If you withdraw more than the investments are earning, the account balance will drop. LIFs are similar to RRIFs. But, in addition to a minimum withdrawal amount, a LIF also has a maximum yearly withdrawal limit. That makes a LIF account less flexible than a RRIF. At any time, you may transfer your assets from a LIF to a payout annuity.

<On the slide:>  Footnote: An owner of a Quebec regulated LIF account who is aged 55 and over is not subject to a maximum withdrawal. <End of slide>

An annuity is the third type of account you can use to receive retirement income. An annuity offers a set payment, typically paid monthly. You receive the payments in exchange for transferring a lump sum of money to an insurance company. There are various kinds of payout annuities designed to meet different financial priorities. Annuities can provide you with a guaranteed regular income for the rest of your life. This type of annuity is called a Life Annuity. Life Annuities can be issued based on a single life. In a spousal situation, they can also be issued on the lives of two people. You can also purchase an annuity with or without a guarantee period. That means there may or may not be the possibility of money being left for your beneficiaries. These are very complex products, and there is no ability to change the contract once it's been issued. For more information, we recommend speaking with a professional advisor for advice related to your specific situation.

Remember Mae? Her income goal is $42,000 per year. Her CPP and OAS will pay just under $17,000. So, she needs to draw $25,000 per year from her savings. $5000 is for essential needs, and $20,000 is for her "wants" category.

Mae has 3 options.

Option 1: A life annuity will ensure Mae does not outlive her income needs. She would receive approximately $27,500 per year in guaranteed income for life. Since Mae is in good health, this may be a good option as she may live into her 90s. One consideration is that Mae won't be able to change her income if unexpected expenses arise.

Option 2: Mae could transfer all of her money to a RIF. If she invested the full $500,000 into a RIF, and earned a 4.0% return each year, she won't outlive her savings. She may even have money left over if she lives to age 90. Market fluctuations may impact her savings over time though and reduce how long the money will last. This creates some uncertainty in her retirement income plan.

Option 3: Mae can set up two products to address her needs and wants separately. She can meet her income needs of $5,140 per year through the purchase of annuity with $120,000 of her savings. Her income wants of $20,000 per year can come from a RIF. If Mae transferred the remaining $380,000 of her savings to a RIF and earned a 4.0% annual return, she won't outlive her savings. This strategy gives Mae lifetime income for her basic needs and some flexibility for unexpected expenses. There's no right or wrong here. Just right or wrong for Mae. She has some thinking to do. Working with a financial planner could help her ensure that her retirement income plan provides a balance between security and flexibility.

<On the slide:> Annuity and RRIF amounts are for illustrative purposes only. <End slide>

In addition to workplace savings plans, some people also invest in real estate. Perhaps they own a cottage or rental property. Other types of savings to include in the retirement planning process are any personal savings. For example, TFSAs, non-registered accounts, stocks or bonds, etc. And some people will choose to work part time in retirement. This may be to fill time, as a social outlet, to create purpose, or for the income. We suggest you include an inheritance only if you're absolutely sure of it. For example, if there's a family trust. The timing on inheritances, and the ultimate amount you receive, can change quickly. You wouldn't want to depend on it, unless you know that it's a sure thing.

We've talked about a lot of things today. And there are more subjects to explore. Things like selecting investments in retirement, income taxes, and legacy issues. That's why planning ahead and using the available tools and resources is so important. To assist you with your planning, Sun Life has a variety of tools available at mysunlife.ca. We encourage you to explore them. Consider working with professionals to build your knowledge and confidence. They can help you create a retirement plan that's tailored to your unique situation.

<On the slide:> The slide lists available resources:
• The retirement planner
• The annuity premium calculator
• The RRIF calculator
• Asset Allocation tool
• Planning your best retirement
• Retirement Planning Guide
• Financial advisor <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>