Investment planning or random guessing?

Members in DC plans behave inconsistently when given the same options
By Richard Deaves
|CHRR, Guide to Pensions & Benefits|Last Updated: 09/18/2006

Canadians aren’t preparing for retirement. Survey after survey has shown that most of the workforce hasn’t thought enough about retirement and employees aren’t socking enough away to maintain a comfortable lifestyle.

The main reason for the lack of preparedness is procrastination. Many family needs are tangible and immediate. Retirement seems far off and saving eminently postponable. This tendency is reinforced by a lack of understanding about how much savings are really needed.

Can one assume that those who are saving on a regular basis are in the clear? Not necessarily. It is still important to invest appropriately. Unfortunately many observers have decried the low level of investment knowledge of pension plan members and the inadequate educational efforts available to remedy this situation.