savings plan trends - cowan insurance group · savings plan trends •28% of employers...
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We care about what you care about.
Savings Plan Trends Teresa Norris-LueNational VP, Pension & Retirement ConsultingCowan Insurance Group
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Agenda: Savings Plan Trends
Auto Features1
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3
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Millennials—Retirement?
Digital Innovation
Psychological Retirement Readiness
Decumulation
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Savings Plan Trends
How much money is left on the table each year
as a result of plan members not maximizing
their employer match?
A. Less than $1 Billion
B. Between $1 Billion & $2 Billion
C. Between $2 Billion & $3 Billion
D. Between $3 Billion & $4 Billion
E. Over $4 Billion
Auto Features
What Do You Think?1
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Savings Plan Trends
• 28% of employers automatically enrol new
employees into their capital accumulation plans*
• 52% of members say they’d
support auto-enrollment*
• Legislation in some provinces continues to be a
barrier for auto enrollment and auto escalation
• Employment contracts for existing employees
may also complicate this
*Source: Benefits Canada CAP Member Survey
Auto Features1
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Savings Plan Trends
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Source: Davidai, Shai et
al. “The meaning of
default options for
potential organ donors
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Savings Plan Trends
The average student debt in Canada is:
A. $18,000
B. $27,000
C. $36,000
D. $45,000
Millennials—Retirement?
What Do You Think?2
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Savings Plan Trends
Financial stress unrelated to retirement:
• Student debt
• Next vacation
• Living expenses
• Continuing education
• First mortgage
Millennials—Retirement? 2
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Savings Plan Trends
What might be more meaningful?
• Student Debt Repayment Matching
• Tax Free Savings Account (TFSA) Options
• Registered Education Savings
Plan (RESP) Matching
• Home Buyers Plan / Lifelong Learning
Plan Withdrawals
• Vacation Accounts
Millennials—Retirement? 2
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Savings Plan Trends
Using technology to:
• Educate
• Connect and support
• Monitor and measure
• Enhance plan member experience
• Add value through information
• Impact behaviour—help employees take action!
Digital Innovation3
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Savings Plan Trends
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Current Future
• Paperless enrollment
• Digital coach/virtual assistants based on
member inquiry
• Personalized plan member portals
• Click to chat/call features
• File feeds between payroll/HRIS and
carriers
• Mobile apps to transact
• Voice enabled enrollment
• Digital coach/virtual assistants—proactive,
personalized nudges using data and AI
• Real time automated data
exchange solutions
• Mobile apps to interact, so all you need is
your phone
Digital Innovation: Evolution3
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Savings Plan Trends
• Increase participation and contribution levels
• Increase awareness, understanding, and
appreciation of plans
• Increases data integrity
• Reduce inquiries, manual processes, and
administrative work for your HR
Digital Innovation
So what?3
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Savings Plan Trends
In 2017, the majority of Canadians 60 and
older who continued to work did so:
• Out of necessity
• Out of choice
Psychological
Retirement Readiness
What Do You Think?
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Savings Plan Trends
Traditional questions around
retirement included:
• When should I retire?
• How much money will I need?
• How long will I live?
• Will I run out of money?
• What will my expenses look like in retirement?
Psychological
Retirement Readiness4
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Savings Plan Trends
Have your employees considered the emotional impact that a
retirement lifestyle can bring?
• What will their retirement look like? What will they do? Where will
they live?
• Are they prepared to be with their partner 24/7? Does their family
understand their vision?
• Will they still feel like they have a “purpose” to fulfill?
• Will they feel a loss of identity, influence, and importance?
Psychological Retirement Readiness4
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Savings Plan Trends
Physical Further develop our discount pricing
Social
Emotional
Environmental
Intellectual
Spiritual
Psychological Retirement Readiness4
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Savings Plan Trends
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• Group RRIF/LIF
• Variable Benefits
• Variable Payment Life
Annuities and Advanced Life
Deferred Annuities
Decumulation
CAP = CADP5
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Savings Plan Trends
The lost productivity in Canada
related specifically to financial
stress annually costs the economy:
• $10 Billion
• $16 Billion
• $22 Billion
• $28 Billion
Bonus Question What Do You Think?
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