Canadian Life and Health Insurance Facts -- 2019

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1 5 Notes Lifetime income benefits A feature of annuities that manages the risk of outliving savings. Maturity guarantees An annuity feature to manage risk of volatile investment returns. Pension plan de-risking Employers may transfer the investment and survival risks associated with defined benefit plan members to insurers who specialize in managing these risks. Accumulation annuities A flexible and secure investment vehicle for pension plans, RRSPs, TFSAs and non- registered funds during the savings stage. Pay-out annuities This type of annuity can provide guaranteed income for life, just like a DB pension. Only life insurers can guarantee income for life. *According to Statistics Canada Pension Satellite Account, 2017. Data excludes unfunded liabilities for public Old Age Security of about $1.6 trillion. Insurers paid out $48.7 billion in retirement benefits in 2018 Insurers manage $321 billion of Canada's pension funds Canada's total pension assets reached $3.8 trillion at the end of 2017. This includes $694 billion in assets held by about 15,400 private employer-based plans which provide retirement protection for about 3 million Canadians.* 6% per year Since 2008, benefits have increased at an average rate of 2018 2016 2014 2012 2010 2008 $ 50B $ 40B $ 30B $ 20B $ 10B $ 694B Private (employer- based) $ 1,233B Personal (RRSPs, TFSAs, etc) $ 1,912B Public pensions (CPP/QPP + government employees) $172 billion is managed by life insurers $149 billion is managed by life insurers $ Contents View provincial data View historical data

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