Table of Contents
Executive Summary
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- The market
- Market factors
- Canadian economy to pick up speed, but many risks remain
- Population changes signal greater opportunity for retirement planning advice
- Financial Strength of Canada’s Pension Plan & Old Age Security
- Companies, brands and innovation
- The consumer
- Almost 80% of non-retired Canadians own a retirement savings product
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- Figure 1: Ownership of retirement savings products, June 2014
- More than a quarter of Canadians fall into the mass affluent category
- Banks are the most trusted source for retirement planning advice
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- Figure 2: Most trusted source of retirement advice, June 2014
- Talking to a financial advisor is the most prevalent retirement planning activity
- A third of Canadians state that they are comfortable with their debt
- Longevity risk at the heart of retirement worry, particularly among women
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- Figure 3: Attitudes towards retirement planning, June 2014
- What we think
Issues in the Market
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- Countering worry factors through more mass-marketed integrated retirement solutions
- The facts
- The implications
- Boosting trust in banks and credit unions
- The facts
- The implications
- Using simple messaging and investment strategies to boost engagement
- The facts
- The implications
- Winning over the Chinese Canadian consumer
- The facts
- The implications
Trend Application
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- Trend: Help Me Help Myself
- Trend: Edutainment
- Trend: Prepare for the Worst
Market Drivers
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- Key points
- Population count and growth in Canada
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- Figure 4: Share of population of Canada, by territory/province, 2014
- Figure 5: Share of population in different age groups, by territory/province, 2013
- Canada’s population is expected to age in the coming years
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- Figure 6: Population aged 65 years and over in Canada, historical and projected (per cent of total), 1971-2061
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- Figure 7: Projected trends in the age structure of the Canada population, 2014-19
- Canada’s low rates of elderly poverty
- Increase in average retirement age
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- Figure 8: Average retirement age in Canada, all retirees, 2009-13
- Overview of Canada’s Retirement Income System
- The Three Pillars of Retirement Income
- Financial Strength of Canada’s Pension Plan & Old Age Security
- Pooled Registered Pension Plan (PRPP)
- Proposed Ontario Retirement Pension Plan (ORPP)
- Canadian mutual fund fees
- Decumulation and longevity risk
- Economic overview
- IMF says Canadian economy to pick up speed, but many risks remain
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- Figure 9: Canada’s GDP by quarter, 2008-14
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- Figure 10: Household disposable incomes and savings in Canada, 2008-14
- Unemployment rates remain steady
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- Figure 11: Canada’s unemployment rate, 2008-14
- Interest rates, inflation and market volatility
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- Figure 12: Inflation rates in Canada, 2004-14
- Outlook on the real estate and housing market
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- Figure 13: Canada median net worth, by province, 2012
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key point
- National Bank’s Investment Track Retirement Planning App for iPad
- Sun Life’s Brighter Life website
- Desjardins
- CI Investments
- RBC Retirement Research Centre
Market Size and Forecast
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- Key points
- Canada Pension Plan (CPP)
- Employer-sponsored pension plans
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- Figure 14: Registered ownership plans in Canada, 2011-12
- RRSP
- TFSA
- Segregated (Seg.) Funds
Companies and Products
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- Bank of Montreal (BMO)
- Overview and company information
- Recent activity and innovation
- Sun Life
- Overview and company information
- Recent activity and innovation
- Fidelity Investments Canada
- Overview and company information
- Recent activity and innovation
- Dundee Goodman Private Wealth
- Overview and company information
- Recent activity and innovation
- Desjardins
- Overview and company information
- Recent activity and innovation
- CI Financial
- Overview and company information
- Recent activity and innovation
- Tangerine Bank (formerly ING Direct)
- Overview and company information
- Recent activity and innovation
Brand Communication and Promotion
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- Key points
- ING (Tangerine) emerges as the most active direct mailer
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- Figure 15: Direct mail acquisition volume (‘000) related to investments (August 2013-May 2014)
- Featured Campaigns from Mintel Comperemedia
- President’s Choice (PC) Financial
- ING Direct/(Tangerine Streetwise Portfolios)
- Insured Annuity from Scotia McLeod
The Consumer – Ownership of Retirement Savings Accounts
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- Key points
- Almost 80% of non-retired Canadians own a retirement savings product
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- Figure 16: Ownership of retirement savings products, June 2014
- Product ownership peaks among over-55s
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- Figure 17: Ownership of retirement savings products, by age, June 2014
- Lower ownership rates in the Atlantic Provinces
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- Figure 18: Ownership of retirement savings products by region, June 2014
- Repertoire analysis
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- Figure 19: Repertoire analysis, June 2014
The Consumer – Amount of Retirement Savings
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- Key points
- More than a quarter of Canadians fall into the mass affluent category
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- Figure 20: Amount of retirement savings, June 2014
- Men are more likely to invest higher amounts for retirement savings
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- Figure 21: Amount of retirement savings, by gender, June 2014
The Consumer – Trust in Retirement Planning Advice
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- Key points
- Banks are the most trusted source for retirement planning advice
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- Figure 22: Most trusted source of retirement advice, June 2014
- Trust in banks declines with age
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- Figure 23: Most trusted source of retirement planning advice, by age, June 2014
- High-income earners prefer independent financial advice
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- Figure 24: Most trusted sources of financial advice, by income, June 2014
- Credit unions and retirement planning
The Consumer – Retirement Planning Activities
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- Key points
- Talking to a financial advisor is the most prevalent planning activity
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- Figure 25: Retirement planning activities performed, June 2014
- Older Canadians are the most likely planners
- More than a third of affluent Canadians have conducted estate planning
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- Figure 26: Retirement planning activities, by amount of investments, June 2014
The Consumer – Attitudes towards Money
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- Key points
- A third of Canadians state that they are comfortable with their debt
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- Figure 27: Attitudes towards money, June 2014
- Women are more risk-averse than men
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- Figure 28: Attitudes towards money, by gender, June 2014
The Consumer – Attitudes towards Retirement Planning
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- Key points
- Summary of attitudes towards retirement planning
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- Figure 29: Attitudes towards retirement planning, June 2014
- Longevity risk at the heart of retirement worry particularly among women
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- Figure 30: Worry-related attitudes towards retirement, June 2014
- Only two in five Canadians feel they will be financially secure when they retire
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- Figure 31: Planning-related attitudes towards retirement, June 2014
- Women are more likely than men to be overwhelmed by retirement investing
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- Figure 32: Retirement investing perspectives, by gender, July 2014
- Widespread difficulties in saving for retirement
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- Figure 33: Attitudes towards the difficulties of retirement planning, June 2014
- Young males most likely to procrastinate on saving for retirement
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- Figure 34: Procrastination-related attitudes towards retirement, June 2014
The Consumer – Retirement Planning and Chinese Canadians
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- Key points
- Significantly high ownership rates of TFSAs among Chinese Canadians
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- Figure 35: Ownership of retirement accounts: Chinese Canadians against White/Caucasians, June 2014
- Chinese Canadians are more likely to rate banks as their most trusted source for retirement planning advice
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- Figure 36: Most trusted source of retirement planning advice: Chinese Canadians against White/Caucasians, June 2014
- Chinese Canadians report a stronger investment knowledge
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- Figure 37: Attitudes towards money: Chinese Canadians against White/Caucasians, June 2014
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- Figure 38: Attitudes towards retirement planning: Chinese Canadians against White/Caucasians, June 2014
The Consumer – Target Groups
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- Key points
- Three target groups
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- Figure 39: Target groups, June 2014
- Group 1: Avoiders (45%)
- Group 2: Planners (27%)
- Group 3: Worriers (28%)
Appendix – The Consumer – Ownership of Retirement Savings Accounts
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- Figure 40: Ownership of retirement savings accounts, June 2014
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- Figure 41: Ownership of retirement savings accounts, by demographics, June 2014
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- Figure 42: Ownership of retirement savings accounts (continued), by demographics, June 2014
- Repertoire analysis
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- Figure 43: Repertoire of ownership of retirement savings accounts, June 2014
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- Figure 44: Repertoire of ownership of retirement savings accounts, by demographics, June 2014
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Appendix – The Consumer – Amount of Retirement Savings
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- Figure 45: Value of retirement savings, June 2014
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- Figure 46: Value of retirement savings, by demographics, June 2014
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- Figure 47: Value of retirement savings (continued), by demographics, June 2014
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- Figure 48: Value of retirement savings, by product ownership, June 2014
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Appendix – The Consumer – Trust in Retirement Planning Advice
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- Figure 49: Most trusted source of retirement advice, June 2014
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- Figure 50: Most trusted source of retirement advice, by demographics, June 2014
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Appendix – The Consumer – Retirement Planning Activities
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- Figure 51: Retirement planning activities performed, June 2014
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- Figure 52: Most popular retirement planning activities performed, by demographics, June 2014
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- Figure 53: Next most popular retirement planning activities performed, by demographics, June 2014
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- Figure 54: Other retirement planning activities performed, by demographics, June 2014
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Appendix – The Consumer – Attitudes towards Money
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- Figure 55: Attitudes towards money, June 2014
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- Figure 56: Attitudes towards money, by demographics, June 2014
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- Figure 57: Attitudes towards money (continued), by demographics, June 2014
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- Figure 58: Attitudes towards money (continued), by demographics, June 2014
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Appendix – The Consumer – Attitudes towards Retirement Planning
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- Figure 59: Attitudes towards retirement, June 2014
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- Figure 60: Agreement with the statements ‘I worry that government old age security will not be available when I retire’ and ‘It is important to know at what age you plan to retire’, by demographics, June 2014
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- Figure 61: Agreement with the statements ‘I am worried about how I will live when I get older’ and ‘I am worried about paying for healthcare costs as I get older’ and, by demographics, June 2014
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- Figure 62: Agreement with the statements ‘I find it hard to save for retirement’ and ‘Thinking about saving for retirement is overwhelming’, by demographics, June 2014
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- Figure 63: Agreement with the statements ‘I feel that I am on track to retire at age 65 or before’ and ‘I feel that I will be financially secure when I retire’, by demographics, June 2014
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- Figure 64: Agreement with the statements ‘I think information about retirement investing is interesting’ and ‘I worry that I have to rely on my family to take care of me when I retire’. by demographics, June 2014
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- Figure 65: Agreement with the statements ‘I would rather use my money for other things than saving for retirement’ and ‘Retirement is so far off, I don't need to think about it’, by demographics, June 2014
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Appendix – The Consumer – Retirement Planning and Chinese Canadians
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- Figure 66: Selected demographics, by total population against Chinese Canadians, June 2014
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Appendix – The Consumer – Target Groups
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- Figure 67: target groups, by demographics, June 2014
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- Figure 68: Ownership of retirement savings accounts, by target groups, June 2014
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- Figure 69: Value of retirement savings, by target groups, June 2014
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- Figure 70: Most trusted source of retirement advice, by target groups, June 2014
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- Figure 71: Retirement planning activities performed, by target groups, June 2014
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- Figure 72: Attitudes towards retirement, by target groups, June 2014
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- Figure 73: Attitudes towards financial planning, by target groups, June 2014
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