1/43 Secure your retirement plans May 2010
Market volatility Price Index MSCI World (January 1997 - January 2010) 2/43
3/43 Market returns and income duration $5,000 withdrawal every year Year 1 2 3 4 5 6 7 8 9 10 15% 11% -2% 6% -2% 14% -15% 9% -8% -22% 25 years
4/43 Market returns and income duration $5,000 withdrawal every year Year 1 2 3 4 5 6 7 8 9 10-22% -8% 9% -15% 14% -2% 6% -2% 11% 15% 16 years (9 fewer years of income)
5/43 Impact of market downturns 25 years
6/43 Impact of market downturns 16 years 25 years
Life expectancy 7/43
8/43 Life expectancy: an increasing average The life expectancy of a 65 year old man is 82 years. Age 82 Age 85 If he reaches age 75, his life expectancy increases to 85 years. Source: Statistics Canada, 2006
9/43 A 60 year old couple's chances of one partner reaching the age of 90 Source: Canadian Institute of Actuaries, 2007
10/43 A 60 year old couple's chances of one partner reaching the age of 85 Source: Canadian Institute of Actuaries, 2007
11/43 100 Retirement income % Employment income to maintain quality of life during retirement 80 60 40 20 0 65 70 75 80 85 Age
12/43 100 Retirement income % Employment income to maintain quality of life during retirement 80 60 40 20 Government plans 0 65 70 75 80 85 Age
13/43 100 Retirement income % Employment income to maintain quality of life during retirement 80 60 40 Personal retirement savings 20 Government plans 0 65 70 75 80 85 Age
14/43 100 Retirement income % Employment income to maintain quality of life during retirement 80 60 40 Personal retirement savings Change your retirement plans 20 Government plans 0 65 70 75 80 85 Age
15/43 100 Retirement income % Employment income to maintain quality of life during retirement 80 60 40 Personal retirement savings Depend solely on government support 20 Government plans 0 65 70 75 80 85 Age
16/43 100 Retirement income % Employment income to maintain quality of life during retirement 80 60 40 Personal retirement savings Depend on your loved ones 20 Government plans 0 65 70 75 80 85 Age
17/43 100 Retirement income % Employment income to maintain quality of life during retirement 80 60 40 Personal retirement savings 20 Government plans 0 65 70 75 80 85 Age Find out more about the GLWB in the Contract and Information Folder.
Helios Contract 18/43
19/43 What is the Helios Contract? CORE GUARANTEES OPTIONAL GUARANTEE 35 FUNDS (15 available with the GLWB) 75/75 75/100 i Guaranteed Lifetime Withdrawal Benefit (GLWB) Reset every 3 years Bonus for life 29 Individual Funds 6 Portfolios of Funds Please refer to the Contract and Information Folder for more information.
20/43 Core Guarantees Guarantee at maturity / Guarantee upon death 75% / 75% 75% / 100% i Please refer to the Contract and Information Folder for more information.
21/43 Why the Guarantee 75/75? Growth potential of mutual funds (management fees comparable to those of mutual funds) Creditor Protection* Designation of a Beneficiary *Creditor and civil liability protections are subject to certain conditions and can differ by province. We recommend that you contact a lawyer to review your specific situation. Please refer to the Contract and Information Folder for more information.
22/43 Why the Guarantee 75/100 i? Estate Protection Death Benefit adjusted* according to inflation or Market Value Maturity Benefit to protect against market downturns Designation of a Beneficiary * Up to age 75. Please refer to the Contract and Information Folder for more information.
23/43 The guaranteed Death Benefit will never decrease Any amount allocated to a GIF is invested at the risk of the Contractholder and may increase or decrease in value. This graph is a simulation of the automatic annual resets of the Death Benefit until the client reaches age 75. This simulation is not an indication or a guarantee of future results.
24/43 What is the Helios Contract? CORE GUARANTEES OPTIONAL GUARANTEE 75/75 75/100 i Guaranteed Lifetime Withdrawal Benefit (GLWB) Reset every 3 years Please refer to the Contract and Information Folder for more information.
25/43 Retire with confidence Guaranteed Lifetime Withdrawal Benefit (GLWB)
26/43 How your income is determined? Âge at first withdrawal Annual withdrawal (one Annuitant) Annual withdrawal (two Annuitants) Age 50 to 54 4.00% 3.50% Age 55 to 59 4.25% 3.75% Age 60 to 64 4.50% 4.00% Age 65 to 69 5.00% 4.50% Age 70 to 74 5.50% 5.00% Age 75 and over 6.00% 5.50% Please refer to the Contract and Information Folder for more information.
27/43 Percentage of income Example of income calculation GLWB Protected Value $500,000 Age at first withdrawal Age 65 Percentage of guaranteed income 5% Annual guaranteed income amount $25,000
28/43 $ GLWB and the payout period Illustrates reset of the GLWB Protected Value under the Helios Contract at age 68 when the Market Value exceeds the GLWB Protected Value. 500 000 $ 400 000 $ 300 000 $ 200 000 $ 100 000 $ 0 $ 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Years GLWB Election Date GLWB Protected Value This graph is not an illustration of future results. You must be at least age 50 at time of first withdrawal. Please refer to the Contract and Information Folder for more details.
29/43 $ GLWB and the payout period Illustrates reset of the GLWB Protected Value under the Helios Contract at age 68 when the Market Value exceeds the GLWB Protected Value. 500 000 $ 400 000 $ 300 000 $ 200 000 $ $10,000 for life 100 000 $ 0 $ 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Years GLWB Election Date GLWB Protected Value GLWB Maximum Amount This graph is not an illustration of future results. You must be at least age 50 at time of first withdrawal. Please refer to the Contract and Information Folder for more details.
30/43 $ GLWB and the payout period Illustrates reset of the GLWB Protected Value under the Helios Contract at age 68 when the Market Value exceeds the GLWB Protected Value. 500 000 $ 400 000 $ 300 000 $ 200 000 $ $10,000 for life 100 000 $ 0 $ 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Years GLWB Election Date GLWB Protected Value GLWB Maximum Amount This graph is not an illustration of future results. You must be at least age 50 at time of first withdrawal. Please refer to the Contract and Information Folder for more details.
31/43 $ GLWB and the payout period Illustrates reset of the GLWB Protected Value under the Helios Contract at age 68 when the Market Value exceeds the GLWB Protected Value. 500 000 $ 400 000 $ 300 000 $ 200 000 $ $10,000 for life 100 000 $ The reset at age 68 increases the amount of income to $14,639 for life. 0 $ 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Years GLWB Election Date GLWB Maximum Amount GLWB Protected Value Market Value Increase in income Reset This graph is not an illustration of future results. You must be at least age 50 at time of first withdrawal. Please refer to the Contract and Information Folder for more details.
32/43 $ GLWB and the payout period Illustrates reset of the GLWB Protected Value under the Helios Contract at age 68 when the Market Value exceeds the GLWB Protected Value. 500 000 $ 400 000 $ 300 000 $ 200 000 $ 100 000 $ $10,000 for life $14,639 for life Regardless of the Market Value Age at first withdrawal Annual withdrawal Age 65 to 69 5.0% Age 70 to 74 5.5% The reset at age 71 increases the amount of income to $22,500 for life. 0 $ 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 Years GLWB Election Date GLWB Protected Value Increase in income GLWB Maximum Amount Market Value This graph is not an illustration of future results. You must be at least age 50 at time of first withdrawal. Please refer to the Contract and Information Folder for more details. Reset
33/43 600,000 RRIF: Withdrawal is exceeding the GLWB Maximum Amount 500,000 400,000 300,000 200,000 100,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Years GLWB Election Date GLWB Maximum Amount GLWB Protected Value Market Value RRIF minimum This graph is not an illustration of future results. Please refer to the Contract and Information Folder for more details.
34/43 Excess payment and GLWB Eligible Withdrawal 400 000,00 $ 350 000,00 $ 300 000,00 $ 250 000,00 $ 200 000,00 $ 150 000,00 $ 100 000,00 $ 50 000,00 $ - $ 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Withdrawals Protected Value Market Value This is not an indication of future results. Please refer to the Contract and Information Folder for more details.
35/43 Excess payment and GLWB Eligible Withdrawal 400 000,00 $ 350 000,00 $ 300 000,00 $ 250 000,00 $ 200 000,00 $ 150 000,00 $ 100 000,00 $ 50 000,00 $ - $ 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Withdrawals Additional Withdrawals Protected Value Market Value This is not an indication of future results. Please refer to the Contract and Information Folder for more details.
36/43 What is the Helios Contract? CORE GUARANTEES OPTIONAL GUARANTEE 75/75 75/100 i Guaranteed Lifetime Withdrawal Benefit (GLWB) Reset every 3 years Bonus for life Please refer to the Contract and Information Folder for more information.
37/43 Bonus after adding the GLWB Adding $150,000 to the GLWB Protected Value of the Helios Contract 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Illustrates the impact of a 5% bonus over 15 years following a Deposit of $200,000 in a Contract. No withdrawal was made. The GLWB Bonus has no impact on the Market Value. Cumulative bonus Deposit to Helios Contract Refer to the Contract and Information Folder for more information about the rules governing the GLWB Bonus.
38/43 $ 900 000 Bonus, reset and retirement income after adding the GLWB 800 000 700 000 600 000 500 000 400 000 300 000 $529,695? $787,768 Illustrates the impact of a 5% bonus over 15 years and resets of an investment benchmarked to the DEX Bond Universe, S&P/TSX Composite, S&P 500 in $CAN and MSCI World index in $CAN, from August 1, 1994 to December 31, 2009, following a Deposit of $200,000 in a Contract. No withdrawals were made prior to retirement. 200 000 100 000 $39,388 for life This simulation is neither an indication nor a guarantee of future results. 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 GLWB Election Date Three year reset GLWB Protected Value Years Market Value Retirement Please refer to the Contract and Information Folder for more details.
39/43 $ 900 000 Bonus, reset and retirement income after adding the GLWB 800 000 700 000 600 000 500 000 400 000 300 000 $529,695 $787,768 Illustrates the impact of a 5% bonus over 15 years and resets of an investment benchmarked to the DEX Bond Universe, S&P/TSX Composite, S&P 500 in $CAN and MSCI World index in $CAN, from August 1, 1994 to December 31, 2009, following a Deposit of $200,000 in a Contract. No withdrawals were made prior to retirement. 200 000 100 000 $39,388 for life This simulation is neither an indication nor a guarantee of future results. 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 GLWB Election Date Three year reset GLWB Protected Value Years Market Value Retirement Please refer to the Contract and Information Folder for more details.
40/43 5% bonus Is the bonus a guaranteed return? No, but it is a powerful tool if your main objective is to optimize your retirement income. The advantage of the GLWB Bonus is that it is doesn t depend on market performance but on whether or not you decide to make withdrawals from your Contract. Once allocated to you, each bonus is included in the calculation of your guaranteed income during your lifetime. You cannot cash in the accumulated value of your bonuses by terminating your Contract. Please refer to the Contract and Information Folder for more information.
41/43 What is the Helios Contract? CORE GUARANTEES OPTIONAL GUARANTEE 35 FUNDS (15 available with the GLWB) 75/75 75/100 i Guaranteed Lifetime Withdrawal Benefit (GLWB) Reset every 3 years Bonus for life 29 Individual Funds 6 Portfolios of Funds Please refer to the Contract and Information Folder for more information.
Experienced investment managers 42/43
Questions? 43/43