iAtoday

Viewpoint | The decumulation challenge

Group Savings and Retirement January 16, 2025
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By Caroline Fillion
Manager, Group Insurance Products
Group Benefits and Retirement Solutions
iA Financial Group

Our expert

 

The retirement landscape has changed significantly over the past few decades. In my view, these shifts are partly due to the transition from defined benefit (DB) plans, where plan sponsors bear the financial risk, to capital accumulation plans.

This shift places the burden on plan members, who must now manage investment and longevity risks themselves. As a result, they need to determine on their own how to ensure their retirement income aligns with their life expectancy.

I believe that these changes present a number of challenges, such as cost predictability for plan sponsors, retirement and stable income planning for plan members, and methods to manage investment and longevity risk.

In light of this, identifying decumulation solutions that address the needs of both plan sponsors and plan members is critical.

To delve deeper into these issues, I invite you to read my detailed analysis published in our new thought leadership space Insights: The decumulation challenge.

 

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