Money for Life: Putting the “Pension” Back in Employee Pension Plans
With innovations emerging to address the limitations of defined-contribution (DC) pension plans and Group Registered Retirement Savings Plans (Group RRSPs), it is time for these capital accumulation plans to shift their focus from building assets to providing lifetime retirement income for retirees.
In the latest report from the C.D. Howe Institute, members of the LifeWorks Retirement and Benefits Solutions team examine the challenges of this important phase, current practices as well as proposed new options.
When it comes to the implications for plan sponsors and members, various questions are addressed including: “Why would plan sponsors want to offer a decumulation strategy or solutions”, “Does adding a decumulation strategy make sense for plan sponsors of any size”, and “What education and communications support can be provided”.
Highlights of the report:
- The challenges of decumulation and managing longevity risk
- Current decumulation options
- New decumulation vehicles
- The way forward and how the adoption of decumulation can be a critical and anchoring component of a financial wellness program