Canadian Life and Health Insurance Facts - 2020

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18 Canadian Life & Health Insurance Facts // 2020 Edition Notes Lifetime income benefits A feature of annuities that mitigates the risk of outliving savings. Maturity guarantees An annuity feature to mitigate the 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, 2018. Data excludes unfunded liabilities for public Old Age Security of about $1.6 trillion. **This includes employees at all levels of government Insurers paid out $ 53.3 billion in retirement benefits in 2019 Insurers manage $ 309 billion of Canada's pension assets Canada's total pension assets reached $3.9 trillion at the end of 2018. This includes $669 billion in assets held by about 15,400 private employer-based plans which provide retirement protection for about 3 million Canadians.* CPP/QPP + government employees** RRSPs, TFSAs, etc. Employer-based plans 7% per year Since 2009, benefits have increased at an average rate of 2019 2017 2015 2013 2011 2009 $ 50B $ 60B $ 40B $ 30B $ 20B $ 10B $168 billion of which is managed by life insurers, accounting for 70% of private pension plans, primarily for small-to-medium-sized businesses $141 billion of which is managed by life insurers $ 669B Private $ 1,200B $ 443B + $ 1,539B = $ 1,982B Public Personal

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