Desjardins Financial Security Launches Retirement Zone Payout Concept

TORONTO, June 21, 2007 � Desjardins Financial Security has developed a crystal ball to help Canadians forecast the potential outlook of their retirement incomes with the assistance of their financial advisor. With the launch of the Retirement Zone Payout concept � the first of its kind financial simulator � advisors and their clients can take the necessary steps to ensure that they can enjoy the secure retirement they’ve been working hard toward achieving.

The Retirement Zone Payout concept gives financial advisors a unique tool that clearly and visually demonstrates various scenarios that their respective clients can expect during their retirement. This software engine allows for the advisor to demonstrate how a product such as a life annuity, part of the asset decumulation portfolio, can help ensure that funds are available to pay every-day living expenses throughout retirement and mitigate, for instance, longevity or inflation risk.

“We wanted to help people find income for life because we noticed through our research that there is a proportion of Canadians at risk of outliving their retirement savings,” says Michael Aziz, regional vice president of Sales Investment Products at Desjardins Financial Security. “Canadians do use financial advisors to help plan for retirement but once people retire, according to the 2006 DFS Retirement Survey, only 56 per cent say they have a plan on how to manage the asset decumulation period.�

The Retirement Zone Payout concept allows advisors to:

  • Showcase using clear illustrations and animated charts, the advantages of a life annuity. The simulator demonstrates retirement income with and without this product.
  • Illustrate life expectancy and the capital depletion.
  • The risk of a person outliving his/her savings.
  • Simulate return fluctuations for a portfolio, that does not include a life annuity, and from which withdrawals are made and
  • Establish the amount of the life annuity to be offered and its payout solutions to ensure peace-of-mind during retirement.

Retirement Zone is bundled with the Fusion software produced by Desjardins Financial Security for the advisory community.

“Using Retirement Zone, it is easy to calculate the amount of the annuity that a client will need to ensure his or her income covers the expense for basic needs throughout their retirement,” adds Aziz.

About Desjardins Financial Security

Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in group and individual life and health insurance, and savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. With a staff of over 3,700 employees, Desjardins Financial Security manages and administers close to $22 billion in assets from offices in major cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec, Levis, Halifax and St. John’s.