July 05, 2017
New retirement solution aims to improve retirement outcomes for Canadians
Next-generation target date solution by Sun Life Financial will be a first for the Canadian market
TORONTO, July 5, 2017 /CNW/ - Sun Life Assurance Company of Canada ("Sun Life") today announced plans to launch a next-generation target date solution designed to improve the retirement outcomes of group savings plan members in Canada. The retirement solution will be a first for the Canadian market.
The new solution will focus members on a retirement income target, give them actionable choices to help close their income gap, and personalize their investment experience to reflect a broad range of factors beyond traditional considerations of just age and risk tolerance. It will also consider salary levels, savings rates, accumulated savings, and other pensions and savings (including government pensions).
The solution will be created in partnership with Dimensional Fund Advisors ("Dimensional"), a global investment manager with a long history of applying academic research to practical investment solutions. The next-generation target date solution has been well received in other markets around the world, including the U.S., South Africa and Australia.
"We're helping Canadians plan for a retirement income based on three key decisions: how much income is needed, how much can they save each pay period, and at what age they want to retire," said Thomas Reid, Senior Vice-President, Group Retirement Services, Sun Life Financial Canada. "This solution customizes the investments for the plan member, automatically adapting as their personal needs and circumstances change, and manages income risk as they approach retirement."
"Many Canadians now spend as much time retired as they did working throughout their career. We need to be adapting our mindset around retirement savings to account for that evolution," said Dr. Robert C. Merton, Resident Scientist, Dimensional, and Nobel laureate in Economics. "Prioritizing sustainable income in retirement rather than wealth accumulation should be a focus for not only plan members but also plan sponsors."
The new retirement solution will be available for group savings plans in 2018.
Mr. Reid added that innovation has been and continues to be a priority for Sun Life, where the goal is to be the partner that employers choose for innovative retirement solutions – all of which are mobile-optimized and built to offer a best-in-class experience.
"We are continuously looking for ways to simplify and automate saving in the workplace so that employers can offer their employees smart savings solutions that help them feel comfortable about the choices they are making and ultimately empower them to achieve their personal retirement goals," said Mr. Reid.
For more information, please visit www.sunlife.ca/GRSMatters
Group Retirement Services are offered by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.
Dimensional Fund Advisors is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in markets, they help investors pursue higher expected returns through advanced portfolio design and careful implementation. With clients around the world, Dimensional has 12 offices in eight countries and global assets under management of US$497 billion as of March 31, 2017. Learn more at www.us.dimensional.com.
Dimensional was recently recognized as "2017 Retirement Leader of the Year" by Fund Intelligence (sponsor of the 24th Mutual Fund Industry Awards) for the development of an innovative target date solution in the U.S. designed to reduce uncertainty around the consumption that a plan participant's savings can support in retirement.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of insurance, wealth and asset management solutions to individuals and corporate Clients. Sun Life Financial has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2017, Sun Life Financial had total assets under management of $927 billion. For more information, please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars except as otherwise noted.
Media relations contact:
Director, Corporate Communications
Sun Life Financial
SOURCE Sun Life Financial Canada