Sun Life Assurance Co. of Canada is introducing what it says is a “great bridge to decumulation” by launching new target-date funds that focus defined contribution pension plan members on their goal for retirement income. The funds, which will be available for group savings plans in 2018, will require plan members to set a retirement income target […]
When it comes to investing for retirement, do plan members benefit more from having target-date funds that come with a standard formula or funds that may change investment strategies over time depending on the portfolio’s performance? A recent paper published by the Social Science Research Network suggested that target-date funds may not be the most […]
Most target-date funds aren’t serving employees well, argues a paper published earlier this month in the Social Science Research Network. While target-date funds are an easy option for employees who aren’t comfortable with making investment decisions, the funds don’t consider employees’ desired retirement incomes or how well the portfolio fares over time, writes researchers Peter A. Forsyth, […]
To leave no one behind, defined contribution pension plans must adapt and innovate. That’s the message delivered by Daniel Morris, portfolio solutions manager with Schroder Investment Management Ltd., during his session at Benefits Canada’s 2017 Defined Contribution Plan Summit. A combination of contributions and return on investments determine the end result of plan savings, and […]
Target-date funds easier, simpler and secure: CAP Benchmark Report
Target-date funds continue to be the most common default investment option offered to members of workplace capital accumulation plans, according to new research by the Canadian Institutional Investment Network and Great-West Life Assurance Co. The 2016 CAP Benchmark Report found 50 per cent of defined contribution plan sponsors and 51 per cent of group registered […]
Setting up a DC plan can be relatively easy; getting your employees to enrol and make smart investing decisions is much harder.
The main challenges of retirement savings—plan participation, contribution rates, and portfolio diversification—are being met head-on by sponsors through their plan and investment menu design decisions, finds a Vanguard report.
Should you go active or passive? Two experts weigh in.
The evolution of 401(k) plan designs has resulted in a significant increase in the use of balanced funds, including target-date funds, by recently hired 401(k) plan participants in 2013 compared with recently hired participants 15 years ago.