During Benefits Canada’s annual DC Plan Summit, plan sponsors participated in interactive sessions. They split into small groups and were given questions to discuss. Based on these discussions, moderators later offered their insights and relayed key take-aways.
Brian Miron, portfolio manager with Pyramis Global Advisors (a Fidelity Investments company) shares the best ideas from the question he moderated: How can we address plan members’ concerns with volatility in the markets and their need for steady income?
Emphasis should be on educating younger members about their savings trajectory. Similarly, older workers approaching retirement should be aware that a review of their investments and risk profile is required to ensure that it is appropriate for their individual needs. As well, TDFs and auto-enrollment have gained traction but are by no means universal. More needs to be done on that front.
Call to action
- Offer a platform with a limited number of options (fewer than 10 can meet the vast majority of plan members’ needs).
- Include a good default option, such as a TDF or a balanced fund. The lineup should probably include annuity products, as well as an alternatives component.
- Plans should highlight how much is saved, including what is projected to be saved, using current investment options. Moreover, what should be projected is how much should be saved to get to a certain target or lifestyle.
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