10
Retirement solutions
Increasing life spans, the trend away from defined benefit (DB) pensions and lower and more volatile investment
returns makes saving for and income security throughout retirement a challenge for Canadians. Annuity products
and other innovative solutions offered by life insurers provide 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 held
within segregated funds. Younger Canadians
continue to focus on wealth accumulation and
retirement planning through these market-
value-based products.
86%
of annuity premiums
are invested in
segregated funds
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
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Assets supporting retirement products
Group accumulation
Individual accumulation
Group payout
Individual payout
-
$ 50B
$100B
$150B
$200B
$250B
$300B
$350B
$400B
2005 2007 2009 2011 2013 2015
of assets are in the
accumulation stage
80%
Pension plans
RRSPs & TFSAs
RRIFs
Non-registered savings
2015 annuities
and pensions
premiums
$45B
from registered
plans
83%
