target-date funds – Benefits Canada.com https://www.benefitscanada.com Canada's most influential pension and benefits publication for decision-makers Mon, 29 Apr 2024 13:02:31 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 Back to basics on investment glide paths https://www.benefitscanada.com/archives_/benefits-canada-archive/back-to-basics-on-investment-glide-paths/ Fri, 12 Apr 2024 12:53:46 +0000 https://www.benefitscanada.com/?p=154085 Simply put, a glide path is a calculation designed to support an employee’s desired retirement timeline through investments in a target-date fund. When an employee first joins a defined contribution pension plan with a target-date fund, they’re exposed to capital appreciation assets that offer the most attractive risk-adjusted returns in the wealth accumulation phase, typically […]

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]]> Head to head: Is it time for DC plan sponsors to quit the balanced fund? https://www.benefitscanada.com/archives_/benefits-canada-archive/head-to-head-is-it-time-for-dc-plan-sponsors-to-quit-the-balanced-fund/ Fri, 15 Dec 2023 13:59:57 +0000 https://www.benefitscanada.com/?p=148443 One defined contribution plan sponsor sings the praises of the traditional balanced fund, while another outlines a different option that better matches risk levels according to plan members’ life stages. Rob Jackett, senior director of finance and administration at Canadian Baptist Ministries Balanced funds are still relevant today for employer-sponsored savings plans. It’s important for employers […]

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]]> Coverage of the 2023 DC Investment Conference https://www.benefitscanada.com/events/conference-coverage/coverage-of-the-2023-dc-investment-conference/ Mon, 06 Nov 2023 13:00:39 +0000 https://www.benefitscanada.com/?p=145288 Since the onset of the coronavirus pandemic three years ago, the global economy has faced a bumpy ride, led by the lingering public health crisis, rising geopolitical tensions and high inflation. The 2023 Defined Contribution Investment Forum, which was held on Sept. 29 at the Ritz-Carlton Hotel in Toronto, shared thought leadership on the various […]

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]]> 2023 DC Investment Forum: Silver linings for retirement savings, investment trends and younger generations https://www.benefitscanada.com/events/conference-coverage/2023-dc-investment-forum-silver-linings-for-retirement-savings-investment-trends-and-younger-generations/ Mon, 06 Nov 2023 12:59:49 +0000 https://www.benefitscanada.com/?p=146050 Defined contribution pension plan members are currently in a different place, especially the younger generations, who are likely feeling as though their financial priorities don’t line up with workplace pensions the way they did for previous generations. “What I’m getting at here is the idea that retirement saving isn’t the undeniable consensus top priority it […]

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]]> 2023 DC Investment Forum: The importance of strategic asset allocation in target-date funds https://www.benefitscanada.com/events/conference-coverage/2023-dc-investment-forum-understanding-strategic-asset-allocation-in-target-date-funds/ Mon, 06 Nov 2023 12:58:17 +0000 https://www.benefitscanada.com/?p=146052 Since defined contribution plan members will experience a wide variety of market conditions over the course of their working lives and into retirement, it’s important for the strategic asset allocation of target-date funds to be diversified and able to stand the test of time, according to Jon Knowles, institutional portfolio manager for global asset allocation at […]

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]]> 2023 DC Investment Forum: Target-date fund glide paths evolving to meet DC plan member needs https://www.benefitscanada.com/events/conference-coverage/2023-dc-investment-forum-target-date-fund-glide-paths-evolving-to-meet-dc-plan-member-needs/ Mon, 06 Nov 2023 12:54:18 +0000 https://www.benefitscanada.com/?p=146064 Plotting out a glide path is the most important part of designing a target-date fund — not only does it take members on a roughly 40-year investing journey, but it also has the most significant impact on their retirement outcomes. Glide paths must also address the key risks facing defined contribution plan members, said Satwick […]

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]]> Report calls for more illiquid assets in DC pension plans’ target-date funds https://www.benefitscanada.com/canadian-investment-review/dc-investments/report-calls-for-more-illiquid-assets-in-dc-pension-plans-target-date-funds/ Fri, 18 Aug 2023 13:00:23 +0000 https://www.benefitscanada.com/?p=142258 Diversifying target-date funds by incorporating illiquid assets — such as private equity, real estate and infrastructure — could result in a 0.15 per cent annual increase in return over a decade, according to a recent report by Georgetown University’s Center for Retirement Initiatives in partnership with CEM Benchmarking Inc. The report was authored by Angela Antonelli, a […]

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]]> 43% of U.S. DC pension plan sponsors offering auto-escalation: survey https://www.benefitscanada.com/pensions/cap/43-of-u-s-dc-pension-plan-sponsors-offering-auto-escalation-survey/ Tue, 15 Aug 2023 19:00:01 +0000 https://www.benefitscanada.com/?p=142227 More than two-fifths (43 per cent) of U.S. defined contribution pension plan sponsors say their plan offers automatic escalation, up from 21 per cent in 2013, according to a new survey by J.P. Morgan Asset Management. The survey, which polled more than 700 employers, found nearly two-thirds (61 per cent) said they take a proactive […]

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]]> Only half of U.S. retirement savers feel on track, an 11% drop since 2022: survey https://www.benefitscanada.com/pensions/retirement/only-half-of-u-s-retirement-savers-feel-on-track-an-11-drop-since-2022-survey/ Fri, 28 Jul 2023 19:00:06 +0000 https://www.benefitscanada.com/?p=141440 Just over half (56 per cent) of Americans feel on track for retirement, an 11 per cent drop in confidence compared to 2022, according to a new survey by BlackRock Inc. The survey, which polled more than 450 large defined contribution pension plan sponsors, 1,200 workplace retirement plan savers, 1,300 independent savers and 300 retired […]

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]]> 2023 DC Plan Summit: How Australia, the U.S. are tackling decumulation challenges https://www.benefitscanada.com/events/conference-coverage/2023-dc-plan-summit-how-australia-the-u-s-are-tackling-decumulation-challenges/ Fri, 12 May 2023 12:50:01 +0000 https://www.benefitscanada.com/?p=137545 While a third of Canadians are very or extremely confident they’ll be able to retire at the age they want to, around 40 per cent are somewhat confident and a fifth say they don’t think they’ll be able to retire at all, according to MFS Investment Management’s 2022 global retirement survey. “Those stats for the […]

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