10
Retirement solutions
Increasing life spans, the trend away from defined benefit (DB) pensions and lower and more volatile investment
returns make saving for and income security throughout retirement a challenge for Canadians. Annuity products
offered by life insurers provide innovative solutions and an excellent way of meeting retirement needs. There
are two stages to an annuity:
1. Accumulating annuities provide
a secure investment vehicle for
pension plans, RRSPs, TFSAs and
non-registered funds during the
savings stage.
2. Pay-out annuities can provide
guaranteed income for life,
just like a DB pension. Only life
insurers can guarantee income
for life.
Annuities provide a range of investment options
for consumers. Variable annuity products,
with benefits linked to the performance of
an underlying portfolio of assets, are backed
by segregated funds. Younger Canadians
continue to focus on wealth accumulation and
retirement planning through these market-
value-based products.
83%
of annuity premiums
are invested in
segregated funds
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Assets managed for retirement products
-
$ 50B
$100B
$150B
$200B
$250B
$300B
$350B
$400B
2007 2009 2011 2013 2015 2017
of assets are in the
accumulation stage
– up from 75% a
decade ago
80%
$450B
Group accumulation
Individual accumulation
Group payout
Individual payout
Pension plans
RRSPs & TFSAs
RRIFs
Non-registered savings
2017 annuity
and pension
premiums
$46.2B
from registered
plans
83%
