Group Retirement Savings Plan for the Employees of

Setting Sail for the Future

Define your Retirement Objectives Projects Dreams _______ At what age?

The Ideal Age for Canadians … 58 years of age ! Source : Desjardins Financial Security Retirement Survey Source : Actuariel assumptions calculated by Desjardins Financial Security …and what is your ideal age ?

How much will you need for a comfortable retirement? A detailed budget or The 70 % rule Example : Mr. Martin's situation Current salary $75 000 The 70% rule x 70% Income at retirement (in today's dollars) = $52 500

Explore the various sources of income at retirement (70% of IBR) Income before retirement (IBR) 8

Plan Highlights Type of Plan: Group RRSP Plan Objective: Save for retirement Eligibility to plan: 1 year of employment Participation: Voluntary Spousal account authorized

Plan Highlights Contributions : Employees: 1% to 17% of salary Employer: 100% on the 1st 1% of employee contribution (maximum of $ 300) Transfers from other plans: allowed

Plan Highlights Destination RRSP, RRIF, Cash Benefits upon termination: Destination RRSP, RRIF, Cash Benefits upon death: Cashable by the beneficiary, Transferable to the surviving spouse Withdrawals while employed: Allowed for employee contributions only

Advantages of your Pension Plan The company contributes on your behalf Payroll deductions reduce your taxable income Wide selection of funds to choose from No minimum or maximum investment per fund Easy member access to information and assistance

Start Early and Accumulate More ! Contribution of $2 000 annually or $5.50 per day Time is on your side…

Time is on your Side! Investment of $20 x 52 weeks x 40 years 126% more in savings ! Accumulated value at retirement Investment of $20 x 52 weeks x 40 years Investment of $40 x 52 weeks x 20 years Accumulation period * Estimated annual return of 6.5%

A Three-Step Approach Fill out the questionnaire Determine your investor profile Choose your investments

Identify your risk tolerance Determine your Investor Profile * Identify your risk tolerance Secure Moderate Balanced Growth Energetic Speculative * Questionnaire available on our Participant Services Web site or in your Enrolment kit

Choose your Investments * Based on your investor profile… Select a lifecycle path 3 lifecycle paths available Adapted to your age and risk tolerance As per a study done in june 2005, 80% of our participants are invested in the portfolios. People spend more time planning their annual trip than planning their retirement. Select your funds 6 multi-management funds or guaranteed fund or * Refer to the "My Investment Funds" document to know the options applicable to your plan

Select a Lifecycle Path Your investor profile Your age Your path towards retirement Secure Path Automatic evolution of investments Quarterly rebalancing

Select your Funds Pre-determined asset allocation Multi-management 20/80 Fund Multi-management 35/65 Fund Multi-management 100 Fund Multi-management 80/20 Fund Multi-management 65/35 Fund Multi-management 50/50 Fund

Select your Funds Guaranteed Fund Guaranteed return Term of 5 years Redeemable at any time

For your retirement, focus on long term returns Returns: Short Term vs. Long Term The damage created by a market downturn is temporary if you stay invested! For your retirement, focus on long term returns

Setting Sail for the Future Education Centre Guidance & support in planning your retirement Setting Sail for the Future Phone line Human touch services Specialized agents Transactional services Changes to your plan Assistance on choice of investments

Setting Sail for the Future Education Centre Guidance & support in planning your retirement Participant Services Web site Complete array of dynamic tools to help you plan your retirement www.dfs.ca/participant Simple and complete transactional services Information on your account Changes to your plan

Setting Sail for the Future Education Centre Guidance & support in planning your retirement Communication tools for participants Enrolment kit Setting Sail for the Future newsletter Statement Investment Info bulletin Targeted Integrated User-friendly

Participant Statement Account summary Asset allocation Investment directions Personalized rate of return

Review your Action Plan Life stages: Joining the labour force Career and family Mid-life Life events: Career/job changes Marriage Birth Death

Thank you!