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 backed
by segregated funds. Younger Canadians
continue to focus on wealth accumulation and
retirement planning through these market-
value-based products.
84%
of annuity premiums
are invested in
segregated funds
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Assets supporting retirement products
Group accumulation
Individual accumulation
Group payout
Individual payout
-
$ 50B
$100B
$150B
$200B
$250B
$300B
$350B
$400B
2006 2008 2010 2012 2014 2016
of assets are in the
accumulation stage
80%
Pension plans
RRSPs & TFSAs
RRIFs
Non-registered savings
2016 annuity
and pension
premiums
$44.6B
from registered
plans
83%
