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Get the facts

The Advantages Retirement Plan™ is a first-of-its-kind group retirement savings solution specifically designed to meet the unique needs of physicians and offers OMA members and their spouses a way to build a foundational level of retirement income.

A physician’s financial life looks different from that of many Canadians

Most physicians are self-employed, incorporated professionals

Physicians often have a more complex financial picture that requires more deliberate planning, including tax planning. Few can join traditional pension plans in Canada, which require an employer-employee relationship. This means most physicians must create alternative ways to attain monthly income certainty during their retirement years.

Physicians usually have a relatively short span of higher-earning years

Although total earnings over a physician’s lifetime can be significant, typically earnings start later in their careers and then climb rapidly. This is often followed by a transitional period of working part-time with earnings gradually decreasing leading up to full retirement.

Many physicians can expect to live longer than the average Canadian

Women now represent more than 40 per cent of Ontario doctors as of 2017, up from 25 per cent in 1995. Life expectancy among Canadian women is nearly five years higher than it is for men. Increasing life expectancies among physicians can mean that planning for longevity can be increasingly critical.

The plan addresses the needs of the Ontario physician community

A physician’s income fluctuates over time

Contributions to the plan are both flexible and automatic. The plan’s auto-escalation feature allows younger physician members to start with lower levels of contributions that automatically and gradually increase over time. This feature also automatically increases contributions in line with inflation. Because retirement is not an all-or-nothing proposition for most physicians, the plan helps you prepare to access a steady stream of retirement income even if you choose to work part-time.

Most OMA members do not have access to defined-benefit pensions

OMA Insurance has created a customized guaranteed lifetime income offering that provides you with income that is guaranteed to last as long as you live. It protects OMA members against the risk of outliving their money, or the danger of an ill-timed market downturn, as they are approaching or in retirement.

Physicians are extremely busy

The Advantages Retirement Plan™ offers low-cost, “set it and forget it” investment options that are tailor-made for retirement saving.

The plan is also offered through an easy-to-use online platform that plan members can access 24/7 and prepare for their retirement hassle-free.

The plan is designed for every stage of a doctor’s career

The Advantages Retirement Plan™ can help physicians and their spouses/common-law partners save for retirement regardless of career stage.

Career stage

Your retirement planning priorities

Getting started: Students approaching residency, residents, fellows, and new-to-practice physicians

Finding a balance between repaying debt, spending, and saving for long-term goals — including retirement

Beginning to accumulate savings even at a modest level, while making a plan to increase these savings over time

Getting serious: Physicians who have been practicing independently for three years or more

Increasing your savings rate so it will be adequate to meet your retirement goals

Starting to think about retirement income planning as your specific retirement goals and timelines come into clearer focus

Minimizing investment costs to ensure that more of your saved earnings contribute to your retirement income

Getting ready: Established physicians who are in the last decade or so of working full-time

A focus on retirement income

Minimizing investment costs to ensure that more of your saved earnings contribute to your retirement income

Adjusting your investments so that you take less risk as you approach retirement, while leaving some room for growth

Planning the timing of your retirement

In retirement: Physicians who are settling into life at a different pace as they transition into full retirement

Maintaining certainty and stability of retirement income

Adjusting your investments so that you take less risk as you enter retirement, while leaving some room for growth

A focus on tax-efficient, integrated drawdown strategies that extend the value of your saved nest egg

Minimizing investment costs to ensure that more of your saved earnings contribute to your retirement income

The information contained in this article is provided for educational purposes only and should not be construed as advice to be acted upon. The information is not intended to offer investment, taxation, accounting, financial or similar professional advice, nor is it intended to replace the advice of independent tax, financial, accounting or legal professionals. This information is based on the common circumstances of the Ontario physician community who are Canadian residents and does not take into account any individual’s particular financial needs, circumstances, residency and objectives. Employees of OMA Insurance are not licensed or authorized to provide investment products, services or advice to you, except as it relates to insurance.

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