CLHIA-ACCAP

Canadian Life and Health Insurance Facts - 2021

Issue link: http://clhia.uberflip.com/i/1409216

Contents of this Issue

Navigation

Page 18 of 29

18 Canadian Life & Health Insurance Facts // 2021 Edition Growing assets to support retirees Over the last decade, accumulation annuities have driven growth in retirement assets held by insurers - up an average of six per cent annually since 2010. 79% of assets are in the accumulation stage – up from 77% a decade ago 2020 2018 2016 2014 2012 46% 31% 7% 7% 8% 8% 9% 16% 50% 29% 14% 51% 28% 13% 55% 24% 13% 57% 22% 12% 2010 44% 33% 16% 7% $ 450B $ 500B $ 350B $ 250B $ 200B $ 300B $ 400B $ 150B $ 100B $ 50B Individual payout Group payout Individual accumulation Group accumulation 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.

Articles in this issue

view archives of CLHIA-ACCAP - Canadian Life and Health Insurance Facts - 2021