TDFs – Benefits Canada.com

Focusing on TDF glide paths as migration from DB to DC plans continue

mdunne — Fri, 15 Oct 2021 12:55:43 +0000

The selection of a target-date fund glide path is more crucial than ever as the migration from DB to DC pension plans continues. Since its formation in the mid-1990s as an optional alternative to the company’s longstanding defined benefit offerings, the DC plan has amassed more than $1.5 billion in total assets as members gradually […]

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Women retiring two years later, with 30% less wealth, than men: report

lbailey — Wed, 10 Mar 2021 13:37:39 +0000

Although women must work two years longer than men to be retirement ready, they still retire with 30 per cent less wealth than their male counterparts, according to a Mercer Canada retirement readiness report. The report found women enter retirement with lower retirement savings than men and they also must work longer to achieve retirement […]

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Alain Malaket: An early-mover in the Canadian pension industry

mschmit — Wed, 07 Oct 2020 04:30:56 +0000

While target-date funds are now a staple in the Canadian defined contribution pension industry, it wasn’t always so. Some of the first employers to bring target-date funds to Canada were George Weston Ltd. and Loblaw Companies Limited, says Alain Malaket, who is currently chief executive officer of InBenefits, but previously oversaw those organizations’ pension and […]

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A fundamental problem with target-date funds

mschmit — Wed, 15 Jul 2020 04:45:55 +0000

Target-date funds lead to defined contribution plan members taking more risk and becoming more diversified than they would be if left to their own devices. But despite these benefits, TDFs fail to provide what members really want and need — a reliable income replacement for life managed by somebody else. My colleague Ioulia Tretiakova and […]

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Fees, member communications top priorities for DC plans in 2020: survey

mschmit — Fri, 10 Jan 2020 10:00:48 +0000

For the fourth consecutive year, reviewing fees is the most important step defined contribution plan sponsors are taking to improve their fiduciary positions, with fees identified as the main priority for 2020, according to a new survey by U.S.-based investment consulting firm Callan. “With the amount of fee-related project work we see, it’s not surprising […]

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DC members mixing TDFs with other assets to their potential detriment: report

mschmit — Tue, 10 Sep 2019 05:46:22 +0000

While target-date funds are intended to be used as a singular option in capital accumulation plans, many defined contribution plan members use them in conjunction with other investments, according to research from Morningstar. The report noted there are potentially more than 10 million DC participants in both TDFs and other plan investments. “While combining target-date […]

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