2 Explore the Various Sources of Retirement Income Income before retirement (IBR) Income at retirement (70% of IBR)

3 Income before retirement: $ 20,000$ 40,000$ 60,000$ 80,000$ 100,000 Income needed at retirement (70%):$ 14,000$ 28,000$ 42,000$ 56,000$ 70,000 Sources of income at retirement: OAS $ 6,204 $ 5,654 QPP/CPP$ 5,000$ 10,000$ 11,208 Personal savings$ 2,796$ 11,796$ 24,588 $ 38,588 $ 53,138 $ 14,000$ 28,000$ 42,000$ 56,000$ 70,000 In percentage: OAS44%22%15%11%8% QPP/CPP36% 26%20%16% Personal savings20%42%59%69%76% 100% Explore the Various Sources of Retirement Income * Applicable rates as at January 2010

4 Plan Highlights Type of plan: Group RRSP Plan objective: Accumulation for retirement Eligibility to plan: Immediate Spouse eligibility : Permitted Participation:Optional * Please refer to the "Plan highlights" document included in your enrolment kit

5 Contributions : 0 – 5 years of service:Voluntary: your choice + 5 years of service: Employee: 3.5% of salary Employer: 3.5% of salary Voluntary: your choice Transfers from other plans: Permitted Plan Highlights

6 Benefits upon retirement: Annuity, RRIF Benefits upon termination: RRSP, cash Benefits upon death: Payable to beneficiary. Can be rolled over to the surviving spouse's RRSP Withdrawals while employed: Employee and voluntary contributions: permitted Employer contributions: not permitted (except for the HBP or the LLP) Plan Highlights

7 Advantages of Your Pension Plan  Employer contribution  Immediate tax break  Very competitive management fees  Simple and effective investment solutions  Easy member access for information and assistance

8  Immediate tax savings! really only costs you: $35 A contribution of $50 a week really only costs you: $35 Without a Contribution  Gross weekly salary$400  Contribution$50$0  Taxable balance$350$400  Tax (marginal rate of 30%)$105$120  Net Salary$245$280 $35 Difference of net salary after deduction of a $50 contribution: $35 Advantages of Your Pension Plan Immediate tax savings!

9 Time is on Your Side! Estimated annual return of 6.5% 126% more in savings !  Investment of $20 x 52 weeks x 40 years  Investment of $40 x 52 weeks x 20 years Accumulated value at retirement Age (accumulation period)

10 Setting Your Retirement Needs  The "Setting Sail for the Future" software  Compass  A detailed assessment of your retirement savings needs

11 You are now ready to review the third Port of call