group retirement savings plan for the employees of

Group Retirement Savings Plan for the Employees of

2

Setting Sail for the FutureSetting Sail for the Future

4

Define your Retirement ObjectivesDefine your Retirement Objectives

Age 55Age 55

Age 60Age 60

Age 65Age 65

At what age?At what age?

Projects Dreams _______ _______ _______

5

The Ideal Age for CanadiansThe Ideal Age for Canadians

Source : Actuariel assumptions calculated by Desjardins Financial Security

… 58 years of age !

……and what is your ideal age ?and what is your ideal age ?

Source : Desjardins Financial Security Retirement Survey

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How much will you need for a How much will you need for a comfortable retirement?comfortable retirement?

The 70 % ruleThe 70 % rule

Example : Mr. Martin's situation

Current salary $75 000

The 70% rule x 70%

Income at retirement (in today's dollars)

= $52 500

A detailed budgetA detailed budgetor

88

Explore the various sources of Explore the various sources of income at retirement income at retirement

Income before retirement (IBR)

Inco

me

at r

etir

emen

t(7

0% o

f IB

R)

Personal savings

QPP/CPP

OAS

9

Plan HighlightsPlan Highlights

Type of Plan:Type of Plan: Group RRSP

Plan Objective:Plan Objective: Save for retirement

Eligibility to plan:Eligibility to plan: 1 year of employment

Participation:Participation: Voluntary

Spousal account authorized

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Contributions :Contributions :

Employees: 1% to 17% of salary

Employer:

100% on the 1st 1% of employee contribution (maximum of $ 300)

Transfers from other plans: Transfers from other plans: allowed

Plan HighlightsPlan Highlights

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Benefits upon termination:Benefits upon termination:Destination RRSP, RRIF, Cash

Benefits upon death:Benefits upon death:

Cashable by the beneficiary,

Transferable to the surviving spouse

Withdrawals while employed: Withdrawals while employed: Allowed for employee contributions only

Plan HighlightsPlan Highlights

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Advantages of your Pension PlanAdvantages of your Pension Plan

The company contributes on your behalf Payroll deductions reduce your taxable income Wide selection of funds to choose from No minimum or maximum investment per fund Easy member access to information and assistance

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Start Early and Accumulate More !Start Early and Accumulate More !

Contribution of $2 000 annually or $5.50 per day

Time is on your side…Time is on your side…

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Time is on your Side!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

Acc

um

ula

ted

val

ue

at

ret

ire

men

t

Accumulation period

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A Three-Step ApproachA Three-Step Approach

1.1. Fill out the questionnaireFill out the questionnaire

2.2. Determine your investor profileDetermine your investor profile

3.3. Choose your investmentsChoose your investments

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Determine your Investor Profile Determine your Investor Profile **

* Questionnaire available on our Participant Services Web site or in your Enrolment kit

Identify your risk toleranceIdentify your risk tolerance

Balanced

Growth

Energetic

Speculative

SecureModerate

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Choose your Investments Choose your Investments **

Select a lifecycle pathSelect a lifecycle path

3 lifecycle paths available3 lifecycle paths available

AAdapted to your age and risk tolerancedapted to your age and risk tolerance

Select your fundsSelect your funds

6 multi-management funds or 6 multi-management funds or guaranteed fundguaranteed fund

Based on your investor profile…Based on your investor profile…

* Refer to the "My Investment Funds" document to know the options applicable to your plan

or

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Select a Lifecycle PathSelect a Lifecycle Path

Your investor Your investor profileprofile

Your Your ageage

Your path towardsYour path towardsretirementretirement

Secure Path

Automatic evolution of investmentsQuarterly rebalancing

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Pre-determined asset allocation

Multi-management 20/80 Fund

Multi-management 35/65 Fund

Multi-management 100 Fund

Multi-management 80/20 Fund

Multi-management 65/35 Fund

Multi-management 50/50 Fund

Select your FundsSelect your Funds

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Guaranteed FundGuaranteed Fund

Guaranteed return

Term of 5 years

Redeemable at any time

Select your FundsSelect your Funds

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S&P/TSX returns from 1997 to 2007

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1 year 10 years

For your retirement, focus on long term returnsFor your retirement, focus on long term returns

The damage The damage created by a created by a

market downturn market downturn is temporary if you is temporary if you

stay invested!stay invested!

Returns: Short Term vs. Long TermReturns: Short Term vs. Long Term

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Setting Sail for the Future Education CentreSetting Sail for the Future Education CentreGuidance & support in planning your retirementGuidance & support in planning your retirement

Setting Sail for the Future Phone lineSetting Sail for the Future Phone line

• Transactional services• Changes to your plan• Assistance on choice of investments

Human touch services Specialized agents

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Participant Services Web siteParticipant Services Web site

Complete array of dynamic tools to help you plan your retirement

www.dfs.ca/participantwww.dfs.ca/participant

• Simple and complete transactional services• Information on your account• Changes to your plan

Setting Sail for the Future Education CentreSetting Sail for the Future Education CentreGuidance & support in planning your retirementGuidance & support in planning your retirement

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Enrolment kit Setting Sail for the Future newsletter Statement Investment Info bulletin

Setting Sail for the Future Education CentreSetting Sail for the Future Education CentreGuidance & support in planning your retirementGuidance & support in planning your retirement

Communication tools for participants Communication tools for participants

• Targeted• Integrated• User-friendly

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Participant StatementParticipant Statement

Account summaryAccount summary

Asset allocationAsset allocation

Investment directionsInvestment directions

Personalized rate of returnPersonalized rate of return

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Review your Action PlanReview your Action Plan

Life stages:Life stages: Joining the labour force

Career and family Mid-life

Life events:Life events: Career/job changes Marriage Birth Death

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Thank you!Thank you!