Registered Retirement Savings Plan for Harris Computer Systems

Registered Retirement Savings Plan for Harris Computer Systems

Setting Sail For The Future

Defining Your Financial Needs A detailed budget or Pre-retirement income The 70% rule $35,000 The 70% rule x 70% Income needed in retirement $24,500

Your Expenses in Retirement Stay the same Groceries Property taxes Utility bills Rent Decrease Personal taxes Workrelated expenses Mortgage Increase Hobbies Travel Dental care and drugs

Sources of Income in Retirement Government plans Your company retirement plan Your personal savings CPP/QPP OAS RRSPs Non-registered savings

Government Plans Canada/Quebec Pension Plan (C/QPP) Eligibility Based on your contributions to the plan 100% of your entitlement at age 65 Reduced benefit if between ages of 60 to 64 Average Monthly Benefit Maximum Monthly Benefit Old Age Based on your Security (OAS) residency in Canada $465 $517 Must be age 65 or older $472 $934

Your Group RRSP Contributions directed to an account in your name Withdrawals are permitted, but subject to tax Participation Optional for full-time employees You are eligible to join the plan after 4 years of service If you were employed April 1, 2010, you are eligible to join the plan immediately

Contributions Employee: as per your choice Employer: 50% of your contributions up to a maximum of less than $2,000 per year or 6% of your salary. The employer contribution will be paid once a year in April and will depend of your contributions of the previous year. You must be employed on the last day of the plan year to be eligible for the employer contribution.

Are You Taking Advantage of Your Plan? Maximize your employer's contributions Convenient Tax-deferred growth No sales charges Lower management fees

Options at Retirement Must purchase an income paying product Annuity and/or Registered Retirement Income Fund (RRIF) Can withdraw as cash Payments are taxed as income

Options at Retirement Annuity Payments in exchange for a lump sum purchase Receive interest rate at time of purchase No active investment management Irrevocable Depending on type of annuity, may be nothing to pass on to beneficiary Registered Retirement Income Fund (RRIF) Annual minimum withdrawal limits based on your age 1/(90-age) *100 Active investment management Tax deferred growth Account balance transferred to your beneficiary

Understanding Investing Equity Return Fixed income Balanced Money market Risk

Choosing Your Investments Age 35 Age 45 Return Age 65 Age 55 Retirement Horizon Risk

Choosing Your Investments Fill in the questionnaire Determine your investor profile Choose your investments

Choosing Your Investments Select your own combination of funds Various investment options Requires more investment knowledge and regular monitoring

Investor Profiles

Our Fund Managers

Choosing Your Investments Select your own combination of funds Various investment options Requires more investment knowledge and regular monitoring Select a lifecycle path Three lifecycle paths available Based on your age and risk tolerance

Select a Lifecycle Path Your investor profile Your age Your path towards retirement Secure Path As you age, the asset allocation of the path becomes more conservative

Advantages of a Lifecycle Path Expertise of professional investment managers Diversification Quarterly rebalancing Automatic evolution of investments

Setting Sail for the Future Education Centre Guidance & Support in Planning Your Retirement Customer Care Centre Human touch services Specialized agents Transactional services Changes to your plan Assistance on choice of investments

Setting Sail for the Future Education Centre Guidance & Support in Planning Your Retirement Participant Services Web site Complete array of dynamic tools to help you plan your retirement www.dfs.ca/participant Simple and complete transactional services Information on your account Changes to your plan

Participant Statement Account summary Asset allocation Investment directions Personalized rate of return Setting Sail for the Future newsletter

Review your action plan Life stages Joining the labour force Career and family Mid-life Retirement Life events Career/job changes Marriage Births Deaths

Completing Your Enrolment Form

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