During Benefits Canada’s annual DC Plan Summit, plan sponsors participated in interactive sessions. They split into small groups and were given questions to discuss. Based on these discussions, moderators later offered their insights and relayed key take-aways.
Louis Martel, managing director and chief client strategist, Greystone Managed Investments Inc. shares the best ideas from the topic they discussed.
The Challenge:
In DC plans, members assume the investment, savings shortfall, longevity and inflation risks associated with retirement. Risk management concepts are still relatively new in DC plans compared with the older, more established DB risk management systems. Plan sponsors are faced with the challenge of providing solutions that recognize the variables associated with retirement savings when developing and promoting DC plans.
Survival Tips for Employers:
- Contribution amounts and time horizon have the largest impact. Plan members need to start early, have a good financial plan in place and review it regularly.
- While many DC members are long-term investors, it is still important to implement solutions that help cushion any market downturns, which may impact their retirement income.
- Solutions should acknowledge that risks exist both during and after the working life of members.
Additional videos from the DC Plan Summit can be found here.