A well-structured DC plan helps members to build savings during their working (accumulation) years and generate sufficient income for their retirement (de-accumulation) years. For plan sponsors, the challenge lies in structuring investment offerings that support members well through both the accumulation and de-accumulation phases.
Watch this video If your DC plan members are after simplicity, a target date fund may seem like a good choice. After all, the member gets a diversified portfolio that adjusts over time, without the member having to take any action. But not so fast, warns Michelle Peshko, senior advisor, pensions and investments, with Xstrata. […]
While plan sponsors across the country are retreating from DB arrangements that are costly to the bottom line in good times—and even more so in economic downturns such as those we’ve faced over the past decade—more and more are looking to DC as an alternative retirement savings option for their employees. According to the 2011 […]
My previous article, Finding the target (date fund), introduced target date funds (TDFs)—also known as lifecycle or age-based funds—and provided background for why they are becoming an increasingly popular choice for capital accumulation plan (CAP) sponsors and their plan members. TDF usage by members will often be very high, and plan sponsors should ensure that […]
Target date funds (also known as lifecycle or age-based funds) have been available to Canadian capital accumulation plan (CAP) sponsors for about half a decade and are becoming an increasingly popular investment option for plan members. Target date funds are a one-stop diversified investment product designed to make investing for retirement less complicated. They go […]
Advantages and disadvantages of one size fits all.
Benchmarking, Fee Structure and other issues.
When one size doesn't fit all.
Phillips, Hager & North Investment Management (PH&N) has launched new funds for institutional investors PH&N LifeTime Funds are target date investment solutions that offer a glide path extending 25 years beyond the target date to support ongoing investment and income withdrawal of defined contribution investors into retirement,” says Colin Ripsman, PH&N vice-president and portfolio manager. […]