M U L T I P R O D U C T B R O C H U R E

THE PRODUCT

A brochure aimed at consumers to highlight the various retirement products offered by Manulife for individuals

transitioning to retirement.

THE CHALLENGE

The marketing folks provided my team with an enormous amount of copy covering a variety of products. The

copy was very broad, covering the spectrum of people just starting to think about retiring to the other end, to

people who were about to retire. Unfortunately by hoping to reach everyone, the copy would reach no one

because people aren’t willing to invest the time it takes to wade through information they aren’t interested in.

Our challenge was to find a way to by-pass that concern, and somehow engage the reader.

THE SOLUTION

Our approach was to create the brochure in a magazine format, and break the copy up into digestible chunks of

information. By creating a table of contents, readers could simply go to the specific information they were interested

in, without having to wade through information they don’t care about. Use of images and other copy/design devices,

we created a piece that could appeal to a wide variety of audiences.

OUTCOME

The magazine format was a huge hit both with clients and the marketing team, and became the benchmark for future similar projects.

We also incorporated a reader response card to solicit feedback to incorporate into future issues. `

YOUR SOURCE FOR

RETIREMENT PLANNING

AND POSSIBILITIES N xte >WHAT’S AFTER?But first, some things to think about before

ELIMINATE DEBTTHE FEWER DEBTS, THE BETTER!

Wills and Trusts; Reviewing These Are a Must

4Needs your retirement income should meet

CLOSER TO A NEW BEGINNING Key elements to consider in your retirement transition

7 WHEN TO RETIRE

7 HOW MUCH WILL IT COST?

8 YOUR INSURANCE NEEDS

9 SOURCES OF INCOME

11 CONSOLIDATE YOUR ASSETS

12 ELIMINATE DEBT

13 ESTATE DOCUMENTS

15 PLAN AHEAD FOR THE UNEXPECTED

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contents

Together with your advisor, we’re here to help

When moving from your working years

into retirement, you know there’s a lot to

think about, such as ensuring that your

savings can cover your expenses, deciding

how best to turn your savings into income,

and choosing what’s right for you in terms of

healthcare coverage.

Here, we outline some of the key points you

should consider in making the transition into

retirement. Many of the decisions you make

at this stage will play a key role in shaping

the success of your retirement plans.

Knowing the options available to you, having

all the information you need, and working

closely with your advisor every step of the

way can help you make the right choices.

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RETIREMENTI N C O M E O P T I O N S

Transitioning to retirement

H E A LT H C A R ECOVERAGE O P T I O N S

Transitioning to retirement

contents N xte >

4

CLOSER to a new

beginning

5

Key elements to consider in your retirement transitionAs you near retirement, you’ve

probably already considered your

lifestyle goals – things like how

much you plan to travel, the types

of entertainment and activities

you want to enjoy, and where you

wish to live. Now it’s time to make

important decisions that will help

support that lifestyle; for example,

the investments that will turn your

retirement savings into income

and the choices related to your

healthcare coverage.

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7

When you retire mattersMany Canadians approaching

retirement want to retire as soon

as they can, to start enjoying the

leisure benefits of being out of the

workforce. Others have no desire to

retire and wish to continue working

full or part-time.

Regardless of which group you

fall into, there are financial

implications. For instance, if you

decide to start drawing your

Canada Pension Plan (CPP) or

Quebec Pension Plan (QPP) benefit

before you reach age 65, you’ll

receive a reduced payout rate.

Alternatively, you’ll receive a

higher payout rate the longer you

wait to draw income past age 65.

There are several other types of

retirement income generating

investments that work under this

principal as well.

Depending on your current income

level, long-term health outlook,

and your retirement goals, there

are advantages and disadvantages

to starting to receive retirement

income earlier or later.

It’s recommended that you seek

counsel from your advisor who can

help you determine when best to

start your retirement based

on your unique situation.

Determine your monthly expenses and create a budgetIt’s important to know what your

retirement lifestyle will cost, along

with your basic monthly expenses,

and develop an appropriate

budget. Your advisor can help you

put together a complete picture of

the monthly expenses you’ll have

in retirement. To get you thinking

about this ahead of the discussion

with your advisor, Manulife has

a simple, easy-to-use online

retirement expense calculator.

Here’s what you need to think about when preparing for retirement.

Visit manulife.ca/retirementexpenses

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Assess your insurance coverageYour insurance needs could change

in retirement, just as your financial

priorities and responsibilities

change. Make sure to review

your life, homeowners, and auto

insurance policies to ensure your

coverage is appropriate for your

new lifestyle.

It’s also possible that life insurance

isn’t necessary if you no longer

have dependants relying on you to

look after them. Your advisor can

help determine whether you’re

insured at an appropriate level and

factor in any plans you may have

to leave money to loved ones or

charities when you pass away.

Have you thought about these expenses?Healthcare costs can significantly

increase your expenses. This is

especially true of those who don’t

replace their workplace group

benefits coverage with an individual

plan after they’ve retired.

For information on the individual

plans Manulife offers, please

refer to “Transitioning to

retirement – Your healthcare

coverage options” on page 18

of this guide.

Caring for an elderly parent could

also be a factor in your monthly

expenses. People are living longer

than ever before, so it’s possible for

some retirees to have a parent living

with them or have to help support

a parent financially.

Needs vary from person to

person, so it’s a good idea to

review every expense, from

charitable contributions and gifts

to basic necessities, to get a clear

understanding of what your

retirement will actually cost.

If you would like to know more

about the life insurance options

available from Manulife, visit

manulife.ca/insurance

Understand where the money will come fromUnderstanding what are considered guaranteed and non-guaranteed sources

of retirement income and how each can address specific needs of retirees is

an important part of making the transition into retirement.

GUARANTEED income sources can include:

■■ The Canada Pension Plan (CPP)

■■ The Quebec Pension Plan in (QPP)

■■ Old Age Security (OAS)

■■ The Guaranteed Income

Supplement (GIS) for low

income retirees

■■ Defined benefit pension plan

savings from an employer

(not everyone has this type of

workplace pension plan)

■■ Individual (personal) investments

that offer a guaranteed income

benefit, such as various types of

annuities and segregated funds

Income from these sources is

“guaranteed” because you will

receive it for the rest of your life.

CPP or QPP combined with OAS can

provide you with an average of up

to $11,500 a year if you’ve worked

in Canada your entire life and retire

at 65. The maximum you could

qualify for is about $16,600 a year.

The amount of OAS and the GIS

you receive is determined by your

annual income. This means that the

Government of Canada will “claw

back” or recover a percentage of

these benefits if your annual earnings

are beyond the maximum allowed.

NON-GUARANTEED income sources are, by their nature, variable and can include:

■■ Defined contribution pension plan

savings from an employer

■■ Employment earnings, should you

continue to work in retirement

■■ Rental earnings

■■ Investment income

■■ Other personal savings

Defined benefit and defined

contribution pension plans

There are two main types of

workplace pension plans, although

some companies may offer a blend

of the two under one plan.

■■ A “defined benefit pension

plan” is a retirement plan in

which an employer promises to

provide guaranteed, lifetime,

regular income at retirement

that is predetermined by a

formula based on the employee’s

earnings history, tenure of service,

and age. The income is not

directly dependent on individual

investment returns.

■■ A “defined contribution

pension plan” is a retirement

plan in which the employer,

employee, or both make

contributions on a regular

basis. The exact amount of

the future income benefit is

not guaranteed and will

fluctuate on the basis of

investment earnings.

To help

you analyze your

potential sources of retirement

income, speak to your advisor. You

can also try Manulife’s Retirement

Income Calculator at

manulife.ca/incomecalculator

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1 Annuity 2000 Mortality Table, Society of Actuaries.2 Statistics Canada, Consumer Price Indexes for Canada, Monthly, 1914-2006 (V41690973 series).

Lasting as long as you live

Canadians are living longer than

previous generations. In fact, the

probability of one spouse or partner

of a healthy couple living into their

nineties is 63 percent1. This means you

should consider placing a portion of

your savings in investments that will

provide guaranteed income, so that

the income can last for your lifetime.

Decreasing the effect of market downturns

An investment portfolio experiencing

poor market returns early in your

retirement – when income is also

being withdrawn – can more quickly

run out of money. A portfolio

experiencing strong returns early

on may provide income much

longer, even if a market downturn

is experienced later on. When close

to or in retirement, a portion of

your investments need to be able to

mitigate the effects of volatile markets

and poor early returns because there

is less or no time left to recover the

losses, the way you could when

you were many years away from

retirement. Again, income that is

guaranteed can help protect you in

these situations.

Keeping up with the increasing cost of living

A 40 cent cup of coffee in 1976

now costs well over $1.502. Based

on a three per cent inflation rate,

the price of a bag of groceries that

costs $100 today will cost $180 in

20 years. This means that a portion

of your retirement savings should be

in investments that have the ability

Your advisor may place your savings into different types of investment products, each with specific features, to help you meet the financial challenges that are unique to retirees. Some of your retirement income sources should meet your needs by:

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Consolidate your assetsConsider consolidating your assets as you

near retirement. Leaving funds at different

financial institutions can make it more

difficult to manage the income from your

investments because you’re juggling multiple

statements and putting more time into

keeping track of them.

In addition, you may qualify for lower fees

if you consolidate with a single institution.

Keep in mind that fees may apply when

closing and consolidating accounts.

to grow in order to keep up with

inflation, otherwise your buying power

will erode over time. Examples include

mutual funds and segregated funds.

Providing easy access to your money

It’s possible to encounter

unforeseen, large-scale

emergencies in retirement that

require you to dip into savings

earmarked strictly for

retirement income.

However, it can be difficult to access

the money within some types of

retirement income investments. While

these investments are necessary to

provide guaranteed lifetime income,

you’ll also need some savings in

non-guaranteed investments (such as

mutual or segregated funds) that you

can more easily access the cash from

in case of emergencies, even though

there may be a fee for doing so.

Speak to your advisor to learn more

about retirement income sources

and the importance of meeting the

financial challenges unique to retirees.

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3 “High credit card rates costing Canadians a fortune”, National Post, March 30, 2013.

EliminateDEBTThe fewer debts you have going into retirement, the better. If possible, you should

consider paying off any lingering debt, but you also don’t want to drain your retirement

savings just to enter retirement debt-free. In this order, think about tackling:

Credit card debt

This is especially important if you

are paying a high rate of interest

on the balance (the average is

over 14 per cent for a fixed-rate

credit card3).

Your mortgage

Making extra mortgage payments

is a good first step. You may also

consider switching to an all-in-one

account, such as the Manulife

One. This type of account can

significantly accelerate your debt

repayment and provide financial

flexibility when your debt is gone

because you’ll have access to credit.

If you’ve paid off your

mortgage, but still have

other debts remaining, one

of the best ways to get rid

of non-mortgage debt is to

consolidate it at one low rate.

This could reduce interest costs

and make it easier to keep track

of how much debt you still have

outstanding. Again, an all-in-one

account such as Manulife One or

a secured line of credit are good

solutions for consolidating your

debt at a low rate.

For more information on

Manulife One, visit manulifeone.ca

or speak with your advisor.

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Review wills, trusts, powers of attorney and beneficiariesEven if you already have these estate documents,

sometimes the provisions made at previous life stages

need to be adjusted to be more appropriate for your

situation at retirement. Perhaps your marital status has

changed or your estate size is now different than when

you originally drew up your documents.

Take time to reconsider the relevance and effectiveness of your will, trust,

power of attorney, and designated beneficiaries as you near retirement. Have

your lawyer and/or advisor review these documents in conjunction with your

investments to make sure that you, your wishes, and your beneficiaries are

appropriately protected.

Wills

While everyone should have a will,

not everyone does. Death can be a

difficult subject and not one most

people want to seriously consider

in terms of themselves or a spouse,

but a will is an important instrument

to help ensure your wishes are

carried out after you’ve passed

away. If you’re planning to retire

soon and don’t already have a will,

creating one now is a good idea.

Trusts

A will by itself may not be enough

to protect your assets and reduce

estate taxes and other costs, so

you may want to look into setting

up a trust. Generally speaking, a

trust can be established during your

lifetime whereby you transfer some

of your assets, such as real estate,

stocks, bonds, mutual funds, bank

accounts and private businesses to

your spouse or partner, children or

other named beneficiaries.

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Powers of attorney

Establishing power(s) of attorney

can help with the control of your

assets, addressing your obligations,

and decisions related to healthcare

should you or your spouse or

partner become incapacitated.

In the event that something

unfortunate happens, a

power of attorney will ensure

your affairs are handled in

the manner you desire.

A designated power of attorney

can, on your behalf, make medical

decisions, pay your bills, file your

tax returns, open your mail, vote,

conduct banking, and speak with

professionals such as accountants

and lawyers. Technically, without a

power of attorney, your spouse or

partner has no legal authority to do

any of these things on your behalf

if you become disabled.

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Plan for the unexpectedFor unexpected expenses,

such as car and home repairs,

you should not deplete your

retirement income funds.

Many financial planning

experts suggest saving three

to six months’ worth of living

expenses for these types

of costs. You’ll be able to

determine this amount when

developing your monthly

expense budget. Make sure

these savings are in an interest-

bearing account so that they’re

making some sort of return.

If you use these savings, it’s

important to replace what you’ve

withdrawn so that you’re prepared

the next time you need them.

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RETIREMENTI N C O M E O P T I O N S

TRANSITIONING TO RETIREMENT

17

When you’re ready to turn your savings into retirement income, it’s

highly recommended that you meet with your advisor who can develop

a retirement income plan for you. The following are the options that

your advisor may discuss with you.

To save for retirement, you’ve likely placed your

savings in various investment products, in addition

to a workplace pension plan if you had one. These

products could include mutual funds, segregated

funds, and GICs4. Some of them may be held in

“registered” accounts, such as Registered Retirement

Savings Plans (RRSPs), which are tax deductible at the

time of deposit – meaning the taxes are deferred until

you withdraw the money. When you’re ready to start

drawing retirement income, your tax-sheltered RRSP

savings will need to be transferred to a Registered

Retirement Income Fund (RRIF).

In order to start drawing retirement income, your

workplace locked-in pension plan assets can be

transferred to one of the following, depending

on your unique situation:

■■ a Life Income Fund (LIF), which is for locked-in

pension plan assets; or

■■ a Locked-in Retirement Income Fund (LRIF), which

is only provided in Newfoundland for locked-in

pension plan assets

■■ a Prescribed Retirement Income Fund (PRIF) which

is only provided in Saskatchewan for locked-in

pension plan assets

You will need to place your retirement savings into all

of these types of accounts by the end of the year in

which you reach age 71, as required by the Canada

Revenue Agency (CRA).

4 GICs refer to Guaranteed Interest Contracts offered by insurance companies or Guaranteed Investment Certificates offered by other financial institutions.

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RRIFs

A RRIF is a registered income fund that you transfer

your RRSP assets into on a tax-sheltered basis and

that pays you an income for as long as you choose

or as long as the money is available. Many different

types of investments can be held in a RRIF, including

mutual funds, segregated funds, and GICs. RRIFs

require that a minimum amount be withdrawn on

an annual basis after the first year. Your minimum

amount is unique to you and based on a formula.

LIFs

If you have workplace pension plan savings, which

are considered locked-in assets, and depending on

your province of residence, you have the option

to move them into a LIF, a type of registered

retirement income fund used specifically to hold

Pension plan savings are called

“locked-in” because, generally, they

are not assets that you can withdraw

prior to retirement. With RRSPs,

alternatively, you can withdraw

the assets prior to retirement, but

withdrawals are taxable at your

personal rate based on your income.

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For those with a Manulife pension

plan, you have access to Manulife

Transition Specialists who can

answer any questions you may have.

These specialists are available from

Monday to Friday, between 9 a.m.

and 5 p.m. ET at 1 866 991 3056.

pension funds and eventually pay you retirement

income. Except in special circumstances, LIF assets

cannot be withdrawn in a lump sum; rather, owners

must use the fund to support retirement income for

their lifetime. Each year provincial regulators specify

the minimum and maximum withdrawal amounts

for LIF owners. There are different LIF rules between

provinces and additional options, depending on

your province of residence.

The decision about what to do with your pension

plan assets as well as your non-registered individual

investments when you retire can have significant

and long lasting financial implications. Work with

your advisor to learn what the best options are for

your situation and understand that some of these

decisions may be final and irreversible.

You can also visit manulife.ca for information..

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H E A LT H C A R ECOVERAGE O P T I O N S

T R A N S I T I O N I N G TO R E T I R E M E N T

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If you’ve participated in a workplace group benefits plan, you’ve been

fortunate to receive coverage to help meet healthcare needs that are not

covered by provincial health insurance plans. Services and treatments,

which may not be covered by provincial plans include:

■■ Prescription drugs

■■ Dental services

■■ Vision care

■■ Additional hospital benefits, such

as preferred accommodation

■■ Registered therapies, such as

massage and chiropractic care

■■ Homecare and nursing

■■ Prosthetic appliances and

equipment

■■ Hearing aids

■■ Ambulance services

However, when you retire and leave

your workplace group benefits

plan, you may no longer have

coverage for these products and

services, unless you replace your

group plan with an individual plan.

Manulife offers two individual plan

options under its CoverMeTM Health

and Dental Insurance to those

who are leaving a group benefits

plan or may never have had a plan

and now want one:

■■ Flexcare®

■■ FollowMe™ Health.

Flexcare

Manulife’s Flexcare is flexible

and affordable and gives you a

variety of plans to choose from,

each offering varying levels of

protection, so you’ll pay only for

the coverage you really want and

need. If you’re age 65 or older,

Flexcare adjusts coverage in certain

areas to better meet your specific

healthcare needs.

FollowMe Health

Manulife’s FollowMe Health

is designed for those whose

workplace group benefits are

ending and who are concerned that

their age or health issues may make

it difficult to obtain affordable

health and dental insurance.

If you apply within 60 days of

the loss of your workplace group

benefits coverage, your acceptance

is guaranteed.

There are four plans with varying

levels of coverage and benefits, so

you can choose the one that best

suits your needs and budget, and

still enjoy many of the healthcare

coverage benefits you had

while working.

For more information about CoverMe Health and Dental Insurance plans, visit coverme.com

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As much as you prepare, even the best laid plans may need to change

Life is unpredictable. So it’s important to be

flexible and ready to make adjustments to your

retirement plans if there are significant changes

in the economic markets or your personal life.

As well, many people realize after six months

to a year into retirement that their needs are

different than what they expected.

Keep in touch with your advisor to help you

monitor your situation and make necessary

changes along the way. Manulife Financial,

a company Canadians have relied on for over

125 years for their most important financial

decisions, is also ready to support you in

achieving your retirement goals.

If you don’t have an advisor, you can visit manulife.ca and use our “Find an advisor tool”

on the right hand side of the home page.

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For more information, please contact your advisor or visit manulife.ca/retirement

Manulife, the Block Design, the Four Cubes Design, and strong reliable trustworthy forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

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