I define my retirement objectives - Desjardins Life Insurance · I define my retirement objectives...

I define my retirement objectives and determine my financial needs.

f I r s t P o r t o f c a l l 1

An action plan is a key part of any strategy to build a nest egg for retirement. It will give you a clear picture of your financial situation and guide you safely into port, on schedule.

The objective of this first port of call is to define your retirement objectives. Then, using one of the two methods proposed, you will calculate how much money you will need to achieve these objectives.

Your action plan will obviously not be set in stone since you will want to adapt it to the changes you experience over the years. You must, however, be consistent with your choices and values. And you must stay on course even if the winds change and there’s turbulence in the markets.

Have a great stay!

I define my retirement objectives Did you know that close to 30% of working Canadians have absolutely no idea what they will be doing when they retire?

And you, where will you be setting sail for?

What kind of lifestyle do you want to have when you retire? Do you have any special projects you have been dreaming about? Take the time to think things through and put your retirement plans down on paper. This will make it easier to determine your financial needs.

Housing – I intend to: • Keep or sell my home

• Buy a condo

• Move to the cottage

• Stay in or move into an apartment

• Buy a motor home

Activities – I intend to: • Do volunteer work

• Care for my grandchildren

• Travel

• Garden

• Play golf, tennis and go cycling

• Work part-time

• Renovate my home

• Go back to school

My retirement plans:

At what age do you want to retire? years old.

Canadians have told us what they think!

Desjardins Financial Security recently hired SOM, Surveys, Opinion Polls and Marketing to conduct a survey of a representative sample of working Canadians. These individuals all agree that special consideration must be given to saving for retirement, but 55% of those surveyed have not done any financial planning to prepare for retirement. They have no idea of the amount of capital they need to have saved to maintain their standard of living once they stop working.

According to the same survey, respondents believe 58 is the ideal age to retire.

And you, at what age do you want to retire?

Life expectancy is continuing to increase, which is a good thing! However, this means that your retirement savings needs are also increasing. To make the most of your retirement, it is essential to plan carefully, keeping a long-term perspective.

I determine my financial needsHow much will you need to realize your plans and live comfortably once you retire?

Here are two methods to help you find your way: the 70% rule of thumb, which is the simplest method, or the detailed budget for a more personalized approach.

Average duration of retirement

Female life expectancy

Male life expectancy

➡

Age 83

Age 87

Ideal retirement age: 58 25 ye

ars

29 ye

ars

Source: Actuarial assumptions calculated by Desjardins Financial Security

➡

f I r s t P o r t o f c a l l 1

The 70% Rule of ThumbExperts agree that you will need approximately 70% of your average gross annual income from your final three years of work to maintain the same standard of living when you retire. This rule assumes that your expenses will decrease by approximately 30% at retirement.

There is no question that there are costs associated with working and that many of your monthly expenses will decrease when you retire. For example, you will no longer be paying into the various government plans (EI, QPP, CPP, etc.) or paying union or professional dues, and your transportation, clothing and meal expenses will be lower. However, you will have some additional expenses since you will have more time to devote to leisure activities, travel and outings. You may also have additional healthcare expenses to consider.

Mr. Johnson’s Mrs. Smith’s My situation situation situation

Current salary $35,000 $45,000 $

70% rule X 70% = X 70% = X 70% =

Retirement income: $24,500 $31,500 $ (In today’s dollars)

Mr. Johnson is now 45 years old and his annual income is $35,000. He plans to retire in 20 years at age 65.

Mrs. Smith is now 35 years old and her annual income is $45,000. She plans to retire in 25 years at age 60.

My Retirement Needs Evaluation Table(Indicate your expenses on a monthly basis in today’s dollars)

My monthly retirement expenses

➡

Multiply by your factor:(see table on next page) X

Total monthly retirement expenses: $ *

Detailed Budget With the detailed budget method, you complete the Evaluation Table below. It obviously requires looking at your retirement plan in greater detail. However, the results may be a lot closer to your personal situation.

Housing Rent/mortgage $

Maintenance (taxes, insurance, repairs) $

Public utilities (telephone, heating, electricity, cable, Internet) $

Recurring expenses Food (groceries, restaurants) $

Car (monthly payments, gas, registration, insurance, repairs) $

Public transportation (passes, taxis) $

Clothing $

Health (drugs, dental care, glasses) $

Grooming (hairdresser, beautician) $

Entertainment Newspapers, books, compact discs $

Trips $

Outings $

Sports, clubs (golf, sailing, tennis) $

Donations, gifts $

Tobacco, alcohol $

Financial obligations Loans (line of credit, credit cards) $

Insurance (life, drug plan) $

Other $

Total expenses: $

*Transfer this amount to the table “My estimated budget at retirement” located in the second port of call.

Consider the impact of inflation in your forecasts…Inflation erodes your purchasing power and reduces the real return of your investments. It should therefore be taken into account. Whereas the weekly cost of a basket of groceries for a family of four people was approximately $27 in 1964, today it would be $157 – almost six times more.

Identify your tax rate and transfer the corresponding factor in the Evaluation Table located on the previous page.

Average cost of a new car

$3,262 $5,900 $11,279 $24,086 $35,791

$27 $48 $102 $157 $233

$1.00 $2.90 $3.88 $7.13 $11.67

Weekly cost of a basket of groceries for a family of four people

Minimum wage (hourly)(Canadian average)

1964 1976 1984 2004 2024

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Factor

1.251.431.672.00

Tax rate

20%30%40%50%

Estimated data taking into account a rate of inflation of 5% between 1964 and 1976, and 2.5% thereafter.

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Did you have a good stay? Do you have any questions about your retirement savings plan? Need advice? Don’t hesitate to visit us at desjardinsfinancialsecurity.com/participant or to contact one of our representatives at the Customer Contact Centre at 1-800-968-3587 or 514-285-7717. They will be your crew and will help you navigate with confidence.

It’s now time to pull up anchor and set sail!

I explore the various sources of retirement income and determine my savings needs.

s e c o n d P o r t o f c a l l 2

At the first port of call, you defined your retirement objectives and assessed what your financial needs would be. This second port of call lets you explore the various sources of retirement income, after which we will help you determine your saving needs.

When you leave this port of call, you will realize that to get to your destination in good shape and with a full cargo, you will need to use all the means at your disposal, whether they be from the government, your employer or your own personal finances.

I explore the various sources of retirement income a. Government plans and benefits B. My company retirement savings plan c. My personal finances

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A. Government plans and benefits Government plans make up your basic retirement income since they replace between 20% and 40% of your average annual income. However, they are not sufficient to maintain your standard of living since you will need around 70% of your average gross annual income from the last three years of work to maintain your standard of living at retirement.

The main sources of government income are:

Canada Pension Plan (CPP)This government plan provides retirement or long-term disability benefits to residents of all Canadian provinces, except Quebec. The amount you receive is based on your earnings registered with the Canada Revenue Agency (CRA).

Quebec Pension Plan (QPP) This government plan provides retirement or long-term disability benefits to Quebec residents. The amount you receive is based on your earnings registered with the Régie des rentes du Québec.

Old Age Security (OAs)This plan provides a basic pension to almost everyone age 65 or older who has lived in Canada for at least 10 years. The amount you receive is taxable and is based on the number of years you have lived in Canada. If your retirement income exceeds the maximum allowable amount, your old age security benefit will be reduced.

Guaranteed Income Supplement (GIs)If you are a low-income OAs pensioner, you may be eligible for the Guaranteed Income supplement at age 65. This benefit is tax-free.

Features of Government Benefits

Average monthly benefit amount

CPP: $473 QPP: $417 $467 Between $272 and $434

according to your eligibility

• Must have contributed to the plan

• Must be at least age 65• Persons between the ages

of 60 and 64 may be eligible, but the benefit amount will be reduced

Eligibility conditions • Must be a Canadian citi-zen or legal resident and have lived in Canada for at least ten years after the age of 18

• Must be age 65 or older

• Must be receiving Old Age security benefits

• Must have a very low income

AnnuallyCost-of-living adjustment Quarterly Quarterly

YesTaxable benefit Yes No

$864Approximate maximum monthly benefit

$491 $621*$410**

CPP/QPP OAS GIS

Data as at January 1, 2007* Amount for single pensioner or for pensioner whose spouse is not receiving OAs.

** Amount for each person in a conjugal relationship when both are receiving OAs.


All workers in Canada contribute to the Canada Pension Plan (CPP), except those in Quebec, who contribute to the Quebec Pension Plan (QPP). You will periodically receive a statement that indicates the employment income on which your contributions are based and provides an estimate of the benefits you could be entitled to.

• To receive a copy of this statement, you can contact the Canada Revenue Agency (1-877-454-4051 or www.rhdcc.gc.ca) or the Régie des rentes du Québec (1-800-463-5185 or www.rrq.gouv.qc.ca).

B. My company retirement savings plan Your company retirement savings plan will provide you with additional retirement income. since there are different types of plans with varying features, it is important to clearly understand the type of plan you have and its features.

What type of retirement savings plan do you have?

Registered pension plan (RPP)

Defined Contribution Pension Plan (DCPP) This plan does not guarantee each participant a predetermined level of retirement income. You and your employer contribute an amount to the plan that is usually based on a percentage of your earnings. The pension is established based on the amounts accumulated in your account and the investment income that the pension fund generates over the years.

Defined Benefit Pension Plan (DBPP) This plan guarantees a level of retirement income, usually determined using a formula set by the plan based on the member’s salary and years of service. Your employer is responsible for ensuring that it has the required sums to pay your pension when you retire. It therefore assumes the risk of investing the contributions wisely so it can guarantee the future value of your pension.

Other types of plans

Group Registered Retirement Savings Plan (Group RRsP)Unlike a registered pension plan, a group RRsP lets you accumulate funds on a voluntary basis, while defer-ring the taxes payable on the contributions and investment gains. The employer is not required to make an employer contribution, but if it does it will be considered to be a taxable benefit for the employee.

Deferred Profit Sharing Plan (DPsP) This type of plan is often offered as a complement to a group RRsP. With this type of plan, an employer shares its profits with its employees. The employer contribution will vary based on corporate profits and the law does not allow employees to contribute.

Contribution Limit and Pension Adjustment

The Canada Revenue Agency limits the annual amount that you can contribute to a registered retirement savings plan.

The contribution limit is determined as follows:

If you do not contribute the maximum amount to your RRsP in a given year, you can carry forward the unused portion and use it in a subsequent year.

To determine your contribution limit: Read the Notice of Assessment that the Canada Revenue Agency sends you every year.

Refer to your Employee Booklet to learn more about the specific features of your plan.

18% of the participant’s salary The lesser of 18% of the income earned in the previous calendar year

18% of the participant’s salary

$20,000 in 2007 $21,000 in 2008$22,000 in 2009indexed for future years

and $19,000 in 2007$20,000 in 2008$21,000 in 2009indexed for future years

$10,000 in 2007$10,500 in 2008$11,000 in 2009indexed for future years

RPP contribution limit (DCPP)

RRSP contribution limit

DPSP contribution limit

ADvANTAGEs Of PLANs OffERED BY EMPLOYERs Your company retirement plan is still the best way to accumulate savings for your retirement. There are many advantages:

• Deductions are made at source: since plan contributions are taken directly from your paycheque, you can’t forget to contribute or spend the money on something else.

• Immediate tax refund: tax is not deducted from the contribution you make to your retirement savings plan.

• Employer contribution: depending on the features of the plan in effect, your employer may contribute to your plan.

• Access to a full range of investment options: experienced fund managers and asset allocation portfolios that match your investor profile.


Pension Adjustment (PA)

The PA represents the deemed value of the pension benefit you build in a year. It should be noted that your RRsP contribution limit for a given year will be reduced by your PA from the previous year. The reduction is calculated using the pension adjustment (PA) that is shown in box 52 on your T4 tax slip.

C. My personal financesYour personal finances consist of your registered and non-registered savings.

Your registered savings

Individual Registered Retirement Savings Plan (RRsP) – An RRsP is a great retirement savings vehicle. It allows you to defer tax on the amounts that accumulate and the return they generate. You will have to pay tax when you start to withdraw these funds, but your tax rate will likely be lower at that time than it is now.

Group RRSPs offered by employers are also part of your registered savings.

Your non-registered savings

Your non-registered savings consist of all your other investments and assets. This may include real property, such as a primary residence, a cottage and an income property. It can also include an inheritance, works of art or any other non-registered investment such as bonds, guaranteed investment certificates, stocks and segregated funds.

This completes the exploration of your various sources of retirement income. To properly plan your retirement, it is important to know the sources of your retirement income.

It is now time to determine what you need to save so you can navigate toward a comfortable retirement.

I determine my savings needsDuring the first port of call, you defined your retirement objectives, established a budget and determined the age at which you want to retire. You have now just explored the various sources of income available when you retire.

Before casting off and setting sail for your third port of call, you should establish a savings plan to achieve your objectives.

We are therefore proposing various methods to help you determine how much you should save. simply select the method that suits you best.

The compass To simplify things, we have designed a compass, an easy-to-use tool that is included in your enrolment folder. simply determine the age at which you want to retire (age 60 or 65) and then find your salary and your current age. It will indicate what percentage of your salary you will have to save to obtain a retirement income equal to 70% of your salary.

The retirement planning software This is a retirement income projection calculator, a copy of which is included in your folder. It takes into account your current retirement plans, other sources of income, and your investor profile. The result obtained will also take your personal situation into account. You will therefore obtain a more in-depth analysis of your savings needs.

The analysis of your savings needsThe following table proposes an analysis of your savings needs.

My sources of monthly income:

Government plans1:

1 The amounts indicated in this table represent an average monthly benefit at age 65.2 To determine this amount: If you are participating in a defined benefit pension plan (DBPP), please refer to your annual

statement. If you are participating in a defined contribution pension plan (DCPP) or a group registered retirement savings plan (Group RRSP), please refer to the calculation table on the following page and enter the amount indicated in line (J).

Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) (Average monthly benefit amount CPP: $473, QPP: $417): $

Old Age security (OAs) (Average monthly benefit amount $467): $467

Guaranteed Income supplement (GIs): $

My company plan2 (Amount indicated in line J in the Calculation Table) $ Other sources of income: $

Total gross monthly income: $ ** In today’s dollars


Enter the amount indicated in line J in the “My sources of monthly income” table in the “My company plan” line.

These tables are only provided as a reference. A 6% rate of return was used, which could fluctuate. A 2.5% salary increase per year was used, which could also vary over time.

25 4.658 26 4.483 27 4.313 28 4.151 29 3.994 30 3.843 31 3.698 32 3.559 33 3.424 34 3.295

35 3.171 36 3.051 37 2.936 38 2.825 39 2.719 40 2.616 41 2.517 42 2.422 43 2.331 44 2.243

45 2.158 46 2.077 47 1.998 48 1.923 49 1.851 50 1.781 51 1.71352 1.649 53 1.587 54 1.527

55 1.469 56 1.414 57 1.360 58 1.309 59 1.260 60 1.212 61 1.166 62 1.122 63 1.080 64 1.039

Table 1Age factor Age factor Age factor

25 104.251 26 99.107 27 94.163 28 89.412 29 84.845 30 80.457 31 76.240 32 72.188 33 68.294 34 64.553

35 60.959 36 57.507 37 54.190 38 51.004 39 47.944 40 45.004 41 42.182 42 39.471 43 36.868 44 34.368

45 31.969 46 29.665 47 27.453 48 25.331 49 23.294 50 21.338 51 19.462 52 17.662 53 15.935 54 14.279

55 12.690 56 11.166 57 9.705 58 8.304 59 6.961 60 5.673 61 4.439 62 3.257 63 2.124 64 1.039

Table 2Age factor Age factor Age factor Age factorAge factor

* In today’s dollars

Calculation TableTo help you estimate your monthly income from an RRsP or a DCPP, we have designed the following calculation table:

Amount accumulated in your retirement savings plan to date: $ (A)

Based on your age, find the corresponding adjustment from Table 1 below (B)

A X B = $ (C)

Amount of annual contribution to your retirement savings plan: $ (D)

Based on your age, find the corresponding factor from Table 2 below (E)

D X E = $ (F)

C + F = $ (G)

Pension factor at age 65: 0.0738 (H)

G X H = $ ( I )

Amount of monthly pension at age 65: (line I ÷ 12): $ *( J )

Start early and save more!Compare what an annual contribution of $2,000 could give you at age 60 or 65, depending on the age you start contributing.

Age 50

Age 40

Age 30

Age 25

Total gross monthly income Enter the amount indicated in the table “My sources of monthly income”: $ LEss (–) Total monthly retirement expenses Enter the amount indicated in the table in the first port of call: $

Total: $ *

If the result is positive, chances are that you will be able to carry out your retirement projects and will perhaps be able to use this difference to carry out additional projects.

If the result is negative, you will likely not have enough income to maintain your standard of living at retirement. You will have to make up this difference with your savings. You should go back to the Calculation Table on the previous page and increase the amount of annual contribution to your retirement savings plan (line D) until you meet your objectives.

My estimated budget at retirement:

$374,096$264,194

$183,978 $264,194

$82,698 $125,431

$28,743 $51,508

Retirement at age 60 Retirement at age 65

Current age Retirement

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Note: A rate of return of 6.5% was used.

* In today’s dollars


Did you enjoy your stay? Do you have any questions about your retirement savings plan? Need help? Don’t hesitate to visit us at desjardinsfinancialsecurity.com/participant or to contact one of our representatives at the Customer Contact Centre at 1-800-968-3587 or 514-285-7717. They will be your crew and will help you navigate with confidence.

Are you ready? Let’s cast off and set sail for your third port of call!

t h i r d P o r t o f c a l l 3

i determine my investor profile and make my investment choices.

You have come a long way. In the first two ports of call you defined your retirement objectives, determined your financial needs, explored the various sources of retirement income and determined your savings needs.

The goal of this third port of call is to find out what type of investor you are. What are you expecting from your investments: security or growth? What is your level of risk tolerance? Do you intend to maintain your cruising speed, whatever the cost, come wind or high water?

By answering these questions you will be able to make the investment choices that match your investor profile.

have a great stay!

To help you determine your investor profile and choose the investments that are right for you, we recommend following this three-step process:

1. i fill out the questionnaire2. i determine my investor profile 3. i make my investment choices

I fill out the questionnaireThe questionnaire has two parts: “My Personal Situation” and “My Risk Tolerance”. For each question, choose the statement that describes you best, and circle the appropriate number.

1. If everything goes as planned, I expect to retire in…

• 5 years or less ...................................................0 • About 10 years ..................................................5 • About 15 years ................................................ 11 • About 20 years ...............................................15 • 25 years or more ........................................... 19

2. How would I define my financial situation right now?

Before answering, consider your age, current expenses, ability to pay off your debts (credit cards, loans, etc.) as well as your emergency and retirement funds (RRSP, amount of principal paid off on your mortgage loan, bank account, etc.).

• Unstable: a lot of debt and very little savings .....................0

• Somewhat unstable: A fair amount of debt and not much savings ...... 2

• Pretty good: Some debts, but some savings too ......................6

• Good: Very little or no debt at all and saving regularly .............................................................................11

Poin

ts 3. Our current annual family income before taxes (pensions included) is…

• Under $30,000 ................................................. 2 • Between $30,000 and $45,000 .................4 • Between $45,001 and $60,000 ..................6 • Between $60,001 and $75,000 ..................8 • over $75,000 ................................................... 10

4. I would like to receive information about the performance of the funds I’ve invested in…

• Every day ............................................................0 • Every month ..................................................... 2 • Every three months .......................................6 • Once a year ......................................................9

5. I know it’s recommended to put money aside for unforeseen events (e.g.: loss of income).

How many months of net family income do we currently have for this purpose?

• Less than one month ....................................0 • Between one and three months .............. 2 • Between three and six months ................6 • More than six months ................................ 11

Total Part A:

Poin

ts

Part A: My Personal Situation

1. How do I react when my investments fluctuate a lot?

• I sell off the ones that have gone down in value and buy more of those that have gone up in value ...........................0• I increase the percentage of those that have gone down in value and sell off the ones that have gone up in value because I believe that sooner or later the situation will change ............. 2• I watch how they perform over a period of a few months and change my portfolio’s asset mix if necessary ....... 7• I keep them without worrying because I invest for the long-term ......... 15

2. A relative suggests putting the money I planned to save this year into a high-risk investment. The investment has a 50/50 chance of tripling in value within two years, but I also have a 50/50 chance of losing everything. What do I do?

• I say “no” right away ................................... 0• I consider it very carefully before making my decision ....................................... 2• I consider it briefly before making my decision ........................................................5• I say “yes” right away ........................................ 7

Poin

ts4. Supposing the markets are going

through a turbulent period, how much of a temporary (e.g. one year) drop in the value of my investments could I tolerate?

• None ...................................................................0• Up to 5% ............................................................ 2• Between 6% and 15% ....................................8• More than 15% ................................................15

3. In general, investing in equity funds produces higher returns than other types of funds, but the level of risk is higher too. If I were investing, how much of my portfolio would I invest in equity funds?

• Less than 20% ..................................................0• Between 20% and 45% ................................. 2• Between 46% and 70% ..................................6• More than 70% .............................................. 9

5. If I had $5,000 to invest and a choice of four options with two possible sets of returns, which one would I choose?• Option A – potential return: $5,200 or $5,300 ..............................................0• Option B – potential return: $4,900 or $5,750 ..............................................4• Option C – potential return: $4,500 or $6,250 ..............................................9• Option D – potential return: $4,000 or $7,000 ............................................ 14

Total Part B:

Poin

ts

Part B: My Risk Tolerance

t h i r d P o r t o f c a l l 3

I add up the results from both parts of the questionnaire and match them up with my investor profile in the table below.

Total: Part A + Part B =

I determine my investor profileMy investor profile My objectives My risk tolerance

Secure (between 0 and 20 points)

I want to minimize the volatility of my portfolio and preserve my capital.

I have a low risk tolerance. My only concern is protecting the value of my savings.

Moderate(between 21 and 40 points)

I want to ensure the security of my portfolio and obtain stable returns.

I prefer to put my money into relatively stable inves-ments. I add certain higher-risk investments, such as equity funds, to gradually increase my portfolio’s value.

Balanced(between 41 and 60 points)

I want to achieve a balance between long-term capital growth and stability.

I am open to opportunities, but not at any cost. I consider the uncertainty of short-term economic conditions, as I aim for a reasonable real return in the long term.

Growth(between 61 and 80 points)

I am looking for investments with good long-term capital growth potential and a certain degree of stability.

I diversify my investments well by incorporating various asset classes. I invest mainly in equity funds, while carefully weighing capital volatility.

Energetic(between 81 and 100 points)

I want to achieve long-term growth.

I have a high risk tolerance because, in principle, the money I put into my retirement savings won’t be used for many more years to come. I am fairly aggressive when making investment decisions and invest mainly in equity funds, with little concern for capital volatility.

Speculative(between 101 and 120 points)

I want to achieve the best returns in the long-term.

I have excellent risk tolerance because, in principle, the money I put into my retirement savings won’t be used for many more years to come. I am fairly aggressive when making investment decisions and invest exclusively in equity funds, regardless of capital volatility.

I make my investment choices Whatever your investor profile, keep in mind that a careful allocation of your investments among a variety of management styles and asset classes will help your portfolio withstand market fluctuations. For example, when one asset class drops in value, the other asset classes, which are evolving in different environments, do not necessarily respond the same way.

Please refer to the document entitled My Investment Funds to learn more about the investment options applicable to your plan.

Did you enjoy your stay? Do you have any questions about your retirement savings plan? Need help? Don’t hesitate to visit us at desjardinsfinancialsecurity.com/participant or to contact one of our representatives at the Customer Contact Centre at 1-800-968-3587 or 514-285-7717. They will be your crew and help you navigate with confidence.

Are you ready for the next port of call? Let’s hoist the sails and get going!

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f o u r t h P o r t o f c a l l 4

I am ready to take action and explore the tracking tools at my disposal.

Your trip is going well. At the first three ports of call, you clarified your destination and the means to get there. You established your action plan based on your objectives and your investor profile.

I am now ready to take action

• I fill out the enrolment form included in my enrolment folder • I submit my form to my plan administrator

Your enrolment marks the beginning of a long voyage…

Get ready to hoist the main sail and head straight out. Don’t worry: Desjardins Financial Security offers you anchor points to maintain contact and tools to help make navigating to your destination a breeze.

My Customer Contact Centre Our Customer Contact Centre offers personalized service with a human touch, backed by active listening, efficient service and quick access to all the information you need.

Our representatives specialized in group retirement savings will make a fine crew for you. Don’t hesitate to contact them to:

• Obtain guidance on the investment options available to you;

• Get information about your account or plan;

• Change your personal information;

• Determine your investor profile;

• Change your investment strategy and make transfers between our different funds;

• Find out the interest rates and rates of return for investment funds;

• Get forms and instructions on how to complete them;

• Get an access code for the Participant Services transactional Web site.

Our Customer Contact Centre uses state-of-the-art telephone technology. We are at your service Monday through Friday from 8 a.m. to 8 p.m. (ET).

You can reach our representatives by:

Phone 1-800-968-3587 or 514-285-7717 (Montréal region)

Email [email protected]

Fax 1-877-350-8555

Participant Services Web site You are now the Captain and in command of your plan thanks to the Participant Services Web site, which contains a great source of information and transactional tools designed to help you plan your retirement.

For your convenience, the content of the Web site has been organized into three sections:

• My Education Centre is an excellent source of practical, easy-to-use tools and information that can help you better manage your retirement savings plan. This is where you’ll find the online version of Setting Sail for the Future, our retirement education and financial planning program.

• My Account gives you access to all financial information on your plan, such as the balance of your investments and your transaction history.

• My Personal Teller provides access to all the transactional services available as part of your retirement plan.

To use our site all you need is a password and a user ID. You can obtain them by visiting us at the following address: desjardinsfinancialsecurity.com/participant or by calling our Customer Contact Centre at 1-800-968-3587 or 514-285-7717.

Sign up for Participant Services. It’s so easy!

f o u r t h P o r t o f c a l l 4

My Statement Your periodic account statement provides you with a complete picture of your retirement savings plan in a clear and easy-to-read format. Among other things, it includes:

• Your account summary;• Your asset mix;• Your investment instructions;• Your personalized rate of return.

And remember that, by accessing the Participant Services Web site, you can view your statement online for any period.

Setting Sail for the Future, My Information Newsletter Setting Sail for the Future is a newsletter for members of our group retirement savings plans. In addition to guiding you in retirement planning, this newsletter covers topics of an economic and financial nature, and provides you with information on the latest products and services.

Each issue of Setting Sail for the Future is also available online.

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Do you have any questions about your retirement savings plan? Need help? Don’t hesitate to visit us at desjardinsfinancialsecurity.com/participant or to contact one of our repre-sentatives at the Customer Contact Centre at 1-800-968-3587 or 514-285-7717. They will be your crew and will help you navigate with confidence.

Are you ready for the fifth port of call? Let’s go!

Stages of my life cycle Required actions Review date

Stage 1 – Joining the Workforce

Stage 2 – Career and Family

Stage 3 – Prime of Life

Stage 4 – Pre-retirement

f i f t h P o r t o f c a l l 5

i review my plan regularly.

You have hoisted the main sail and are now underway. To steer a straight course toward your financial future, it is important to check your bearings from time to time and adjust your course as needed.

The objective of this fifth port of call is to give you some tips that you can use as your retirement approaches. We also propose some strategies based on the various stages of life.

Here are a few tips to help me reach my retirement objectives

• I save a certain percentage (%) of my income to invest in a savings vehicle, ideally one that is registered.

• I start my savings plan as soon as possible, to benefit from the power of compound interest and maybe retire earlier.

• I find out about the options available in my pension plan: I may have the option of making additional contributions.

• I avoid delayed payment credit traps (buy now, pay later) as well as unreasonable indebtedness.

• I diversify my investments and my maturity dates to optimize yield and reduce risk.

30 years from retirement

• If I am a homeowner, I will try paying off my mortgage before I retire.

• I maximize my pension plan contributions.

• I consider the possibility of contributing to my spouse’s RRSP to split my retirement income and lower tax rates.

• I maximize my taxation strategies.

• I set up an emergency fund in case of unforeseen expenses.


• If I haven’t used up all my RRSP contribution room, I take advantage of the opportunity to do so.

• I optimize my registered and non-registered investments.

• I learn about my retirement income options.

• I take the time to redefine the lifestyle I would like to have when I retire.

• I review my savings strategy, as needed, to determine if any changes are required.

• I don’t hesitate to contact a financial advisor.


The stages of my life cycle

Joining the Workforce (age 18 to 29)

This is my first real job and saving for retirement is not a major concern. However, I know this is the best time to start saving. Any amount invested now, no matter how small, could continue to grow for more than 40 years!

Career and Family (age 30 to 44)

My career path is becoming more clearly defined, and my family obligations continue to grow along with my income and expenses. It’s now more important than ever for me to focus on investment growth and continue to save. I must try to use all the annual contribution room my various retirement plans offer.

Prime of Life (age 45 to 54)

I still have financial obligations, but my income keeps growing. There’s now a new dimension to my financial security: I have more disposable income to set aside. After letting my assets grow for a number of years, it’s now time to re-evaluate my investment strategy with retirement in mind.

Pre-retirement (age 55 to 64)

On a professional level, I’m now reaping the rewards of all my hard work. My income is higher than it’s ever been, and my financial obligations are decreasing. I continue to save a good portion of my income for retirement without having to give up the things I have always dreamed of doing.

Retirement savings strategies

Your investment objectives should be geared primarily to long-term capital growth.

Try and make the value of your capital grow. Your long-term investment horizon should favour growth, but you also want to protect your capital. That’s why it’s important to keep your investment risk at a comfortable level.

You should rebalance your portfolio’s asset mix in order to achieve a balance between capital growth and stability.

You should be reviewing your portfolio’s asset allocation in order to achieve a balance between capital income and stability, and at the same time aim for enough growth to counteract inflation.

f i f t h P o r t o f c a l l 5

I adopt certain retirement savings strategies in keeping with each stage of my life cycleBecause your retirement objectives are constantly evolving, we recommend, as part of your “Required Actions”, that you go over the different steps of your education and financial retirement planning program at least once at each stage of the life cycle or whenever a major event takes place in your life (job change, marriage, birth, disability, etc.).

We hope that these five ports of call have helped you find your way and let you Set Sail for the Future!

Have a safe trip...and a great retirement!

Throughout your voyage, don’t forget that our Customer Contact Centre is there to help. You can contact our representatives as follows:

Phone 1-800-968-3587 or 514-285-7717 (Montreal region) (Monday to Friday, 8 a.m. to 8 p.m. (ET))

Email [email protected]

Fax 1-877-350-8555

My log

Stages of my life cycle Required actions Review date

Stage 1 – Joining the Workforce

Stage 2 – Career and Family

Stage 3 – Prime of Life

Stage 4 – Pre-retirement

I review my action plan

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05)


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