Next Stepnews WINTER 2015 Two-minute video simplifies retirement income

Feeling confused about retirement income options? Even if you’re not retiring soon, knowing about your options now means less stress later. Turning your savings into retirement income It takes some planning to make the jump from saving for retirement to using your money in retirement. To help you prepare, check out the new video, Turning your savings into retirement income. It’s on our YouTube channel at www.youtube.com/greatwestgrs. It’s easier to learn about your options than you may think. The video simplifies annuities, registered retirement income funds (RRIFs) and life income funds (LIFs). It’s only two minutes long, but could give you a lifetime of valuable insight. More videos to help manage your plan Want to learn how the NextStep plan can help you reach your financial goals? Check out our other videos on YouTube.

Inflation Find out how inflation will change prices in the future and ways to lessen its effect on your savings. Early withdrawal See how taking early withdrawals from your NextStep plan can significantly impact your future retirement income.

Subscribe to our YouTube channel using the red subscribe button on www.youtube.com/greatwestgrs. To discuss your retirement income options, That way you can see new videos call Access Line at 1-800-724-3402 and ask to speak as soon as they’re posted. with an investment and retirement specialist. MCC# 893196 Beat the RRSP contribution deadline with online banking

Looking to make a last-minute RRSP contribution before the March 2, 2015 deadline? Use personal online banking to make an RRSP Switch your contribution quickly. You could reduce your taxes pre-authorized and keep more of your money. contributions to How to contribute online banking Go to the NextStep infosite home page for instructions on setting up contributions through your bank’s website. Sign in to GRS Access and If you’re already making on the home page select NextStep infosite. pre-authorized contributions Your contribution needs to be made by March 2, 2015 (before your bank’s (PAC), online banking business day cut-off) to be eligible for the 2014 income tax year. Check with can give you much more your bank for specific business day cut-off times for processing transactions. flexibility. Call Access Line If you prefer not to contribute through online banking, you can complete to stop your pre-authorized and mail a form instead. Electronic forms in PDF format are available on contributions and get the NextStep infosite under Forms. Your envelope must be postmarked started with online on or before March 2, 2015 to be eligible for the 2014 income tax year. banking today. Where to find your contribution limit Check the Notice of Assessment you received from the Canada Revenue Agency (CRA) after filing your 2013 income tax return. It will show the RRSP contribution limit you have available for 2014. If the CRA has reassessed your previous year’s tax return, your revised RRSP contribution limit will appear on your Notice of Reassessment. You can also find your contribution limit by using the CRA’s Tax Information Phone Service (TIPS), or their online services My Account and Quick Access. Visit www.cra-arc.gc.ca for more information. Call Access Line if you have questions about the deadline or need help making contributions. Investment news New funds meet current investing challenges Great-West Life has introduced several new funds to satisfy a growing need for income generation, capital growth and low-volatility investment options. Managed by respected investment managers, the new funds broaden your investment selection and aim to deliver superior risk-adjusted returns. More information on the Putnam U.S. Value Fund is available by signing in to GRS Access and referring to the fund report under the Investments tab. Other fund reports will be available on GRS Access in mid-February 2015. In the meantime you can call Access Line for more information.

Fund code New fund name Who is this fund for? Income-seeking investors who want to invest in dividend paying USDVG GWLIM U.S. Dividend Fund companies in the U.S. Income-seeking investors who want to invest in dividend paying GDIVS Setanta Global Dividend Fund companies throughout the world. Fixed-income investors who want potential protection from rising FRIMK Mackenzie Floating Rate Income Fund interest rates. Investors looking to mitigate downside risk and smooth out the ups USLVP Putnam U.S. Low Volatility Fund and downs of market cycles. Longer term investors, comfortable with moderate risk, seeking growth USVEP Putnam U.S. Value Fund from U.S. stocks consisting of capital growth and current income.

BonaVista and UBS fund closures Update to BlackRock LifePath Funds Effective Nov. 20, 2014, the BonaVista Canadian Equity As the BlackRock LifePath 2010 Fund and 2015 Fund Fund (S106), UBS Global Equity Fund (SICG) and UBS reached their target dates, the investment manager American Equity Fund (S236) are no longer available. combined these funds with its Retirement Fund at the The investment lineup offers a number of other funds end of the fourth quarter 2014. As a result of this decision: with very similar investment objectives. • We’ve renamed the 2015 Fund (BGI15) to Affected members were mailed a letter on Sept. 19, 2014, BlackRock LifePath 2015 Retirement Fund (BGI15). outlining the changes in more detail. The BlackRock LifePath 2010 Retirement Fund was previously renamed. Fund name changes • We’ve started investing both the 2010 and As a result of investment manager changes, the London 2015 Retirement Funds in the BlackRock LifePath Capital Global Equity Fund (LGEL), Mackenzie Far East Retirement Fund. Equity Fund (S038), Mackenzie U.S. Large Cap Growth Fund (LAEM) and UBS International Equity Fund (LIEP) The 2015 Fund is a suitable choice for those who will were renamed on Sept. 15, 2014. Also, the Bissett retire up to 2017 and will remain available until you’re Balanced Fund (S104) was renamed in mid-August. ready to convert your savings into regular income. The funds’ investment styles, objectives, fund codes The fourth-quarter fund reports, available in mid-February and the investment management fees didn’t change. 2015, will reflect these changes. Sign in to GRS Access For more information, sign in to GRS Access and refer and go to the Investments tab. to the fund reports under the Investments tab.

Fund code Existing fund name New fund name Rationale Global Equity (London Global Equity Putnam Investments has global reach and resources LGEL Capital) (Putnam) with offices around the world. Canada Life Investments is a U.K.-based investment S038 Far East Equity (Mackenzie) Far East Equity (CLI) manager with strong international capabilities. U.S. Large Cap Growth U.S. Growth Putnam uses a wide range of asset classes and strategies LAEM (Mackenzie) (Putnam) to seize the growth of U.S. companies of all sizes. Dedicated portfolio managers use in-depth, bottom-up International Equity LIEP International Equity (UBS) research to identify the best international investment (Putnam) opportunities. The Bissett Balanced Fund currently invests in Templeton Balanced Fund S104 Balanced Fund (Bissett) Institutional Balanced Trust. This name change reflects that (Templeton) Templeton oversees the fund. TFSA withdrawals – fyi clearing up the confusion In 2014, close to 55,000 Canadians faced Canada Revenue Agency (CRA) penalties for tax-free savings account (TFSA) contributions that went over the contribution limit. How do so many people make a contribution error when the Consolidate your rules seem so straightforward? savings within The truth is, the rules aren’t as straightforward as they seem. While the NextStep by June 30 contribution limit is specific ($5,500 for 2014 contributions), the confusion Saving with NextStep can be arises around what happens when you make a withdrawal from your TFSA. like buying in bulk. As your Your Dollar Unused Withdrawals savings grow and reach a current limit contribution made in new level, you’ll benefit year’s current room from previous year from even lower investment limit = year + previous year + management fees and higher interest rates on guaranteed If you’ve reached the contribution limit in your TFSA and you make a investment accounts. withdrawal, contribution room isn’t instantly available. You won’t get that contribution room back until the beginning of the following year. For Each year, your fee and interest instance, if you contributed up to the limit and you then withdraw $5,000 in rate levels are determined June 2015, that room isn’t back in your TFSA contribution limit until January by your plan balance as of 2016. Remember, when you’ve reached the contribution limit and you make a June 30. Moving your savings withdrawal, you can’t put money back into your TFSA until the following year from other financial institutions or you risk tax penalties. before June 30 helps you take The good news is, because the contribution limit is cumulative, the space the advantage of NextStep’s lower withdrawal created will be available in the following year. For instance, if you had fees and higher rates. withdrawn $5,000 in 2015, you’d have $10,500 in contribution room in 2016. Complete a Transfer form available on the NextStep Looking for your TFSA contribution limit? infosite or call Access Line You can find your contribution limit by using the CRA’s Tax Information for help. Phone Service (TIPS), or their online services, My Account and Quick Access. Visit www.cra-arc.gc.ca for more information. Is your email address current? Make sure we have your correct contact information. Don’t miss out on important To update, call us or go online. plan information. To add or update your email address, Contact us sign in to GRS Access and go Access Line NextStep to Online profile, located in 1-800-724-3402 infosite the upper-right corner. GRS Access Sign in to GRS Access You’ll receive an online edition www.grsaccess.com and on the home of NextStep News twice a year, page select with timely information and Great-West Life valuable tips. Group Retirement Services, T-540 255 Dufferin Avenue London, ON N6A 4K1

The views expressed in this commentary are those of Great-West Life at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Prospective investors should review all documents relating to any investment carefully before making an investment decision and seek guidance based on their specific circumstances.

The Great-West Life Assurance Company and key design are trademarks of The Great-West Life Assurance Company (Great-West Life), used under licence by London Life Insurance Company (London Life) and The Canada Life Assurance Company (Canada Life) for the promotion and marketing of insurance products. London Life and Canada Life are subsidiaries of Great-West Life. As described in this newsletter, the group retirement and savings products are issued by London Life and the payout annuity products are issued by Canada Life, Great-West Life and London Life.

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