The Crisis in Retirement Planning
How Much Should I Save For Retirement?
Introducing the S&P STRIDE Index Series
In Review: DC Thought Leadership
The Retirement Income Equation
Dimensional manages a broad range of equity and fixed income strategies to meet the diverse needs of investors, including DC plan participants. Sponsors can use Dimensional strategies to design an investment menu that addresses a variety of participant profiles while encouraging higher participation rates and better investment decisions.
When budgeting for expenses, most people start with income, matching up what they expect to earn with what they would like to spend. Having a good estimate of future income makes planning much easier. But what about planning for retirement? In the same way, participants in a company-sponsored plan should have a clear view of how much income they can expect their savings to provide during retirement. Dimensional has developed an approach centered on a risk management framework that is focused on what we believe is the right goal (retirement income). Our approach seeks to manage investment risks that may affect that goal (such as rising inflation or changes in interest rates).
We believe this approach, when combined with meaningful reporting for participants, can bring more transparency to their preparedness for retirement, and help them better understand what choices can be made today in an effort to improve their chances for a successful retirement.
As the retirement landscape continues to evolve, Dimensional is dedicated to exploring what steps can be taken to improve participants’ chances for a successful retirement.
Issue: Winter 2017