Advantage SelectFor a smooth transition from your group plan

Contents 01 When I leave my employer, what happens

to my group plan savings?02 Key benefits of Advantage Select04 Why are small fees a big deal?05 Advantage Select: an overview06 Advantage Select Reward Program08 How can Manulife help?

Advantage Select 01

When you leave your employer, you have to make some decisions regarding the savings you’ve accumulated under your group plan.

Whether you’re still saving for retirement or ready to draw an income, the experts at Manulife can provide guidance and advice to help you make informed decisions.

1 Upon termination of employment, you will receive a plan termination letter outlining all of your options.

2 The Advantage Program is a group program sponsored by Manulife Trust Company, an affiliated company of The Manufacturers Life Insurance Company.

What are my options with my savings?1

1. Keep your savings with Manulife under The Advantage Program2 and continue to enjoy many of the benefits and flexibility associated with a group plan; or

2. Transfer your savings to an individual product, another financial institution; or new employer’s group plan, if applicable or

3. Take the payment in cash (less applicable taxes), if allowed under your group plan

Exclusive to Manulife group plan membersBecause you were a member of a Manulife group plan, you and your spouse may qualify for exclusive access to Advantage Select, part of The Advantage Program.

When I leave my employer, what happens to my group plan savings?

Take Advantage of your group planAs a member of a group savings and retirement plan, you enjoy many benefits that are not available to individual investors. For example, you may pay lower investment management fees than individual investors.

Investment Management Fees (IMFs) and features may vary depending on the amount to be invested, the fund(s) selected and the type of product chosen. For example, retail segregated fund policies offer a minimum principal guarantee in case of death or at maturity. This is not available under a group plan. It is recommended that you compare product fees and features before making a decision. Manulife reserves the right to change, terminate or convert The Advantage Program and to correct any error or omission occurring in this document.

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Key benefits of Advantage Select

Manulife expertsYou have access to a qualified team dedicated to guiding and advising members leaving their employer or retiring - at no extra charge

Personalized Retirement Income PlanFor members approaching retirement3, discuss your particular situation with a Retirement Consultant who will put together a retirement income plan to help you meet your goals.3 10 years or less from normal retirement age

02 Advantage Select

Keep control of your savingsChange your investments, make withdrawals, transfer money in or change your payment schedule: it’s all easy and flexible. Plus, you continue to have access to our VIP Room website and tools.

Ease of contributionsYou can continue to contribute to your account(s) through regular monthly contributions from your bank account, through lump-sum contributions on-line or by cheque. You can also transfer assets from another institution.

Regular income payment into your accountWhen you’re ready to draw income, your income payments are deposited directly into your account – like a pay cheque.

Competitive costs – More incomeGroup plans generally offer lower fees than those you would pay as an individual investor through a bank. This can translate into more income for you.

Reward ProgramAdvantage Select rewards larger investments with lower fees and higher guaranteed interest rates.

Because it’s a family plan, both your assets and your spouse’s assets count to determine where you stand in the Program.

New opportunitiesYou and your spouse get access to new group plans like a group TFSA and group non-registered plan – not typically offered in employers’ group programs.

Benefits for your spouse

Advantage Select is a family plan: which means your spouse also has access. Plus, both accounts are kept separate so you each keep control of your assets.

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04 Advantage Select

Fees impact your retirement incomeAs a member of a Manulife group plan, you generally pay lower fees than if you were to invest in a retail product on your own.

Just as this helps you grow your investments when you’re in your saving years, low-expense investing can also help you stretch your nest egg longer once you’re retired, thereby reducing the risk of outliving your assets. Even a small difference in fees can have a significant impact.

How does this impact my retirement income?Here’s an example of how this would impact you if you had $100,000 in assets and wanted income over a period of 25 years:

1% fees

Or

Or

Yearly income of $6,910 for 25 years (10% increase)

Yearly income of $6,266 for 31 years (instead of 25)

Yearly income of $6,266 and $30,000 in your account after 25 years

2% fees

Yearly income of $6,266 and $0 in your account after 25 years

Assumption: gross annual return of 6%

Fees vary considerably across asset classes and companies. Savvy investors always consider the impact of fees when making decisions about where to invest.

Why are small fees a big deal?

Advantage Select 05

For more details, please refer to the Advantage Select - Product specifications document.

Advantage Select: an overview

Advantage Select is a group plan similar to your employer’s plan. It’s an exclusive opportunity offered to members – and their spouse – when they terminate their group plan membership and need to make a decision regarding their savings.

Who can join?To take advantage of this exclusive offer, you must:

¬ Transfer a minimum of $25,000 (your assets and your spouse’s assets combined)

¬ Complete the enrolment process

Eligibility for your spouse:

¬ As soon as you’re eligible to join Advantage Select, your spouse is eligible too

¬ Complete the enrolment process

Both accounts are kept separate so you each keep control of your assets.

InvestmentsWith Advantage Select and Manulife, you get access to:

¬ Guaranteed lifetime income by converting to an annuity

¬ Portfolio diversification through a vast array of asset classes such as:

Tax efficient plans

Savings Plans Income Plans

Registered Retirement Savings Plan (RRSP) Registered Retirement Income Fund (RRIF)

Locked-in Retirement Account (LIRA) Life Income Fund (LIF)

Tax Free Savings Account (TFSA) Annuity

Other Plans

Non-registered savings plans (NRSP)

Tax efficient plansAdvantage Select offers the possibility to invest in a wide range of group plans, some of which may not be available to you in your current group program. This could allow you to use your savings more efficiently to save taxes.

Guaranteed funds Money market funds Fixed income funds

Balanced funds Equity funds (Canadian, U.S., International, ...) Dividend funds

Specialty funds (real estate, mortgage, ...) Socially responsible funds Indexed funds

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How the Reward Program4 worksOur Reward Program is based on the amount of money you and your spouse transfer into Advantage Select. Remember: you can transfer more than just your employer’s group plan assets.

The more you invest, the more you may save on fees and the more you may earn on your guaranteed investments. In addition, once you achieve a reward level, you maintain it even if your balance decreases due to income payments5 or market fluctuations.

Here’s an overview of the Program:

4 For more details, please refer to the Advantage Select – Product specifications document.

5 Certain conditions apply for exceptional withdrawals

6 Your assets and your spouse’s assets transferred to Advantage Select

7 Renewal guaranteed rate enhancements on Compound Interest Accumulator (CIA) and Daily Interest Accumulator (DIA) only

Advantage Select Reward Program

Advantage Select – Reward Program

Silver Gold Platinum

Assets6

Investment Management Fees (IMF)

Enhancement on guaranteed rates7

Get an extra 0.50%

$25,000 to $99,999

Save 0.30%

Get an extra 0.75%

$100,000 to $249,999

Save 0.70%

Get an extra 0.875%

More than $250,000

The more you invest, the more you save on fees and the more you may earn on your guaranteed investments.

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8 New deposits or renewal of a deposit that has reached maturity

9 Assumes $1,100 monthly income over 20 years, 6% return before fees and IMFs of 1.65% before transfer and 1.35% after

Taking Advantage of the Reward ProgramExample: You transferred $75,000 to Advantage Select and are classified Silver level.

Transferring assetsYou decide to consolidate your assets and transfer $100,000 from outside Manulife (for a total of $175,000 in assets):

¬ You are reclassified to the Gold level

¬ Enhancements on guaranteed rates will increase8

¬ You save on fees: this could mean more than $4,000 in savings9

$100,000

Silver

$75,000

Gold

$175,000

You

Transferring spouse’s assets Both you and your spouse decide to each transfer $100,000 from outside Manulife (for a total of $275,000 in family assets):

¬ You are both reclassified to the Platinum level

¬ Enhancements on guaranteed rates will increase8

¬ You save on fees: this could mean more than $15,000 in savings10

$100,000

Spouse

$100,000

YouSilver

$75,000

Platinum

$275,000

10 Assumes $1,725 monthly income over 20 years, 6% return before fees and IMFs of 1.65% before transfer and 0.95% after

When consolidating your assets with Advantage Select, the benefits are two-fold: One, the Reward Program allows you to benefit from lower fees if you increase your assets to the next level.

And two, you generally pay lower fees as part of a group plan than if you were to invest in a retail product on your own.

Investment Management Fees (IMFs) and features may vary depending on the amount to be invested, the fund(s) selected and the type of product chosen. For example, retail segregated fund policies offer a minimum principal guarantee in case of death or at maturity. This is not available under a group plan. It is recommended that you compare product fees and features before making a decision. Manulife reserves the right to change, terminate or convert The Advantage Program and to correct any error or omission occurring in this document.

08 Advantage Select

Our team of experts provide support and education during your transitionAs people leave their employer or approach retirement, it’s not unusual for them to feel anxious – with good reason. The choices you make during this period can have an impact on your retirement income. But with all the options available out there, how can the average person know what to do?

To guide you during this transition, we’ve set-up a team specifically dedicated to helping you make informed decisions. Our Transition Experts assist you as you leave your employer and, if you are less than 10 years from retirement, our Retirement Consultants will help you to plan for your retirement.

From answers to simple questions, to filling out paperwork, to developing a full-fledged retirement income plan, our team can help you prepare for retirement with more confidence by providing information, guidance and advice specific to your situation.

Our Retirement Consultants will develop your personalized Retirement Income PlanThe Retirement Income Plan is a personalized roadmap to help you prepare for retirement and make informed choices. It covers:

¬ Your income needs at retirement

¬ Asset allocation before and after retirement

¬ Your payout options

¬ Your projected gross and net income

¬ Scenario analysis

A Retirement Income Plan is available to members 10 years or less from normal retirement age at no extra charge by contacting the Manulife Retirement Centre.

How can Manulife help?

Manulife team

Dedicated

Salaried Highly qualified

No extra charge

Our goal is to help you make informed decisions so your savings work harder and longer.

Investment Management Fees (IMFs) and features may vary depending on the amount to be invested, the fund(s) selected and the type of product chosen. For example, retail segregated fund policies offer a minimum principal guarantee in case of death or at maturity. This is not available under a group plan. It is recommended that you compare product fees and features before making a decision. Manulife reserves the right to change, terminate or convert The Advantage Program and to correct any error or omission occurring in this document.Manulife, Manulife Insurance, the Block Design, the Four Cube Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under licence.GE13123D SLX GS 12/16

Find out more Contact us at 1 800 242-1704 manulife.ca