How can plan sponsors encourage their employees to make better investment decisions? And what can they do to address the different behavioural tendencies across different generations when it comes to investment decisions around defined contribution pension plans? Those questions were among the many issues explored during Benefits Canada’s DC Investment Forum in Toronto on Oct. […]
Low interest rates, poor stock market returns and ongoing volatility are making it increasingly challenging to find investment solutions that will help plan members reach their retirement goals. So what can plan sponsors do? Rahul Khasgiwale, investment director for multi assets at Aviva Investors, said the answer may lie in alternative asset classes that play […]
With U.S. investors under 30 putting a large portion of their defined contribution pension investments in target-date funds, the industry is growing quickly, Vanguard’s Matthew Brancato told the 2016 DC Investment Forum. “The TDF industry is a $1.2-trillion industry today, and that’s expected to grow to $3 trillion over the next couple of years in […]
As the trend toward defined contribution pension plans continues to take shape, concern is growing over the potential for investors’ behavioural biases to affect their retirement outcomes. Behavioural bias can often manifest itself as being overly confident, said Lisa Kramer, a professor of finance at the University of Toronto. “Investors often think they know best,” […]
As defined contribution plans continue to transition from being a supplement to defined benefit pensions to become a mainstay of the retirement system, plan sponsors have plenty of options to boost member outcomes, said Katie Taylor, director of thought leadership at Fidelity Investments. “Plan sponsors should implement plan design features that encourage enrolment, higher levels […]
Instead of focusing only on retirement, a defined contribution pension plan should aim for smooth consumption throughout a member’s lifetime, BlackRock Inc.’s Matthew O’Hara told participants at the 2016 DC Investment Forum. “A glide path should consider how much you should be saving at any given point in time and it must have an allocation […]
With three generations active in the workforce and another group about to join, defined contribution pension plan sponsors must consider the unique needs and behaviours of the different demographics. Compared to baby boomers and generation Xers, millennials exhibit greater risk aversion, said Katie Taylor, director of thought leadership at Fidelity Investments. “They don’t take risk […]
Persistent global economic weakness and market volatility have brought the issue of retirement funding inadequacy into sharp focus. And these market realities are creating pressure on DC plan sponsors to find new ways to help plan members accumulate assets and achieve secure retirements. Industry experts at Benefits Canada’s 2015 DC Investment Forum in Toronto discussed […]
Note: This story was written before Premier Kathleen Wynne announced Tuesday that her government would drop the Ontario Retirement Pension Plan if the Liberals win the election. The message of the Government of Ontario on the Ontario Retirement Pension Plan (ORPP) is loud and clear. The plan can effectively provide a predictable source of retirement […]
Lessons for DC plan sponsors on ensuring retirement readiness