Retirement income remains a blind spot for DC plans

Defined contribution pension plans face a growing challenge as more Canadians retire without a clear strategy for converting savings into income.

Sebastien Betermier, executive director of the International Centre for Pension Management, says many plan sponsors stepped away from retirement-income responsibility when shifting from defined benefit plans.

Members are therefore left to navigate complex financial decisions independently. Betermier points to variable payment life annuities as a promising solution, allowing retirees to place part of their savings in a managed pool while retaining flexibility elsewhere.

“If we can do it right, I think it would be a huge improvement,” he said.