©  Copyright 2002 Rogers Media. The following article first appeared in the March 2002 edition of BENEFITS CANADA magazine.

While daily headlines cry out for immediate reaction, the best thing members can do is maintain a long-term focus. A successful education strategy involves dealing with the noise. This is never more important than when news of wide-ranging and unexpected events dominate the headlines as they did following the tragedy of Sept. 11.

An education program should take into account the sophistication of the membership and the influence that their environment may have on investment decisions. The goal is to remind members that the success of their retirement plan is founded on a disciplined approach to investing.

For example, members need to understand that making the right strategic asset allocation decisions has more impact than the specific fund option chosen within an asset class. Dollar-cost averaging of investments smoothes out some of the bumps and avoids market-timing decisions.

A good education program equips members to:
> Identify their investor profile, set a matching investment strategy and stick to it.
> Maintain realistic expectations for returns and capital growth.
> Invest regularly through payroll deduction.
> Diversify by asset class.
> Avoid market timing and speculative bubbles.
> Focus on long-term performance.

The challenge for sponsors is to make this message compelling at the very same time as the media turns retirement planning into a competition of who can get rich quickest. This means a communication plan cannot simply consist of a one-time event at enrolment. It has to be ongoing, engaging and evolve with members' needs and market events.

When a time-sensitive message is drafted and released to members, new rumours are already flying. A better strategy is to keep messages timeless and focused on the future. It is in the long term that any solid strategy proves its worth.

Sponsors are not responsible for the behaviour of the capital markets. When members have questions and concerns about their investments, it is best for employers to refer them to the appropriate service provider.

Sponsors should leave market commentary to the specialists who are equipped with up-to-date information, consistent messages and can offer guidance.

The role of the sponsor is to provide members with the opportunity to receive education. Each member will respond differently to different media. Whatever medium is used, the message must be consistent. This is essential to the credibility of the program.

In times of crisis, members will turn to those they trust. These relationships take time to build and reflect a long-term commitment to the well-being of members. There is no short cut, so the time to start is now.

In the end, investing is a risky business for everyone. But DC members have advantages. Other influencing factors can be overcome with good education and retirement planning can become a managed process that the sponsor plays an active role in. Sponsors will know that they have achieved a successful outcome when members say, "I'm aware, comfortable and confident." BC

The Romanow Commission has released its final report on the future of healthcare in Canada.

For Commissioner Romanow's recommendations, click here.

Click here for Senator Michael Kirby's report, "The Health of Canadians – The Federal Role: Recommendations for Reform."