Pensions

Canadian DC - Is there a default default?

12/17/2014

Many Canadian plan sponsors are re-evaluating their DC plans’ default funds, seeking strategies more likely to generate robust retirement outcomes. Under consideration are balanced funds utilising static asset allocation and target date funds with fixed glide paths, both of which offer substantial improvements on the status quo. However, we argue in this paper that both approaches introduce structural failings meaning their outcomes are still likely to fall short of what is actually needed by members.

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.