risksandreturnsfordefinedbenefit&definedcontributionpensionplan英文(pdf 7页)

From an employee’s perspective, there aresome obvious and some not so obvious risksof participating in a DC pension plan . . .
 the markets might perform poorly
 the employee might invest badly
 the employee might underestimate required
savings due to
–underestimating retirement income
–long life
–forced early retirement
–inflation
IFID Conference – April 28, 2004Risks and Returns for Defined Benefit & DefinedContribution Pension PlansMercer Human Resource ConsultingMalcolm Hamilton, Toronto ph: 416 868 2708 2Mercer Human Resource Consulting 3Many of these risks can be managed . . .
 age-related asset mixes
 diversification
 education/advice
 annuitization
But there are no guarantees – sound strategiesneed not produce happy outcomes. Safestrategies often require significant sacrifice.Mercer Human Resource Consulting 4Risks that cannot be avoided oreliminated at an acceptable price mustultimately be borne. Losses can beaddressed by
 saving more
 choosing more aggressive investments
 retiring later
 getting by on less
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