When should you think about retirement? $150 invested over 25 years = $45,000 4% average annual return $100 invested over 25 years = $30,000 For illustration purposes only - does not promise any guarantees or rights to the benefits
$35,000 How much should you save? John Income before $35,000 retirement How much will you need for a comfortable retirement? Income before retirement Income needed at retirement (in today's dollars) $24,500 x 70%
How much should you save? What kind of lifestyle is most like you? JOANNESAM NICK AND KAREN MICHAEL AND SOPHIESTEPHEN Retirement income $30,000$40,000$50,000$60,000$70,000 Personal Savings Required $225,000*$375,000*$500,000**$675,000**$850,000* *Based on a single life only annuity guaranteed 10 years **Assumes a joint life 60% survivior annuity guaranteed 10 years All assume CPP/QPP and OAS benefits, an interest rate of 4.5% and pension amounts are indexed with inflation at 2%. For illustration purposes only - does not promise any guarantees or rights to the benefits.
Canada Pension Plan (CPP) Old Age Security (OAS) Government programs Group Registered Retirement Savings Plan (Group RRSP) Your company retirement plan Individual RRSP Non-Registered Plan Your personal savings Government plans only replace between 20% and 40% of your average annual income.
Where will your money come from? ELIGIBILITY AVERAGE MONTHLY BENEFIT MAXIMUM MONTHLY BENEFIT Canada Pension Plan (CPP) Based on your contributions to the plan 100% of your entitlement at age 65 Reduced benefit if between ages of 60 to 64 $505$960 Old Age Security (OAS) Based on your residency in Canada Must be age 65 or older $490$524 Government plans
Eligible to join after one year of service Garda: $0.40 per hour contributed on a monthly basis You: PAC or cheques Withdrawals not permitted Home Buyers' Plan and Lifelong Learning Program Lower fees Management: 1.50% Investment: 0.20% - 0.80%
Your group retirement savings program + Unused contribution room Maximum of $22,450 (2011) 18% Previous year’s earned income Limit set by Canada Revenue Agency (CRA) Check your Notice of Assessment Visit: www.cra-arc.gc.ca or call: 1-800-959-8281 Contribution to your RRSP = RRSP contribution limit
Participant statements How to stay on target? Summary and detailed information Mailed to your home Available online
Participant Services Centre How to stay on target? Investment information and guidance Information about your account and plan Interfund transfers Completing forms Available from 8 a.m. to 8 p.m. EST, Monday to Friday 1-800-968-3587
1.Read through the material 2.Complete Investor Profile Questionnaire 3.Choose your investments 4.Ask questions 5.Complete the enrolment form and return to Harry Mesman at UFCW
Enrolment and Investment Instruction forms What are the next steps? 1.Complete your personal information 2.Appoint your beneficiaries 3.Appoint a trustee (if beneficiary is a minor) 4.Determine your contribution amount 5.Determine your investment option 1.Option 1 – Diapason Portfolios 2.Option 2 – Build your own 6.Sign your forms