Advancing the DB versus DC debate

4 responses to “Advancing the DB versus DC debate”

1. 

   Frank McGillicuddy

   February 24, 2012

   Many canadians shud investigate the Saskatchewan Pension Plan http://www.saskpension.com to which u can shift rrsp/DC savings and easily convert to annuity – very low costs to their investment funds, low costs of their whole program – nobody is selling it or will make $$ from u signing up, but it is a solid alternative to most self-directed retirement savings plans, for many canadians

   Log in to Reply
2. 

   Jan Snippe

   February 9, 2012

   Interesting approach, but not as as new as it may seem to be. It bears similarities with Robert C. Merton’s work on ‘Next-Generation Retirement Solutions’ which he used as a basis for engineering a very practical solution: Managed DC. Managed DC is not just a concept, it has been life and kicking since 2006, and is offered by Dimensional Fund Advisors. It actually goes quite bit further than replicating deferred real annuities. It offers a personalized and dynamic (rather than a mechanical life-cycled based) investment approach. It works well without member engagement and provides meaningful information and choices to members who do engage. There is no need to wait for APG.

   Log in to Reply
   1. 

      Jens van Egmond

      February 10, 2012

      Thank you for this useful feedback. The objective of my research project was to create momentum towards thinking of pensions as retirement cash flows instead of just pension savings. The lack of pension understanding is a looming social problem that should be addressed. I am happy to hear that you have developed a product that targets the real need of individuals. Advancing pension thinking in this direction is the big challenge for academics and practitioners going forward.

      Kind regards

      Jens van Egmond

      Log in to Reply