In the second scenario, the worker had access to a flexible employer-sponsored retirement plan from their first day with the company. The flexible plan allowed them to fully capture their employer’s five per cent matching contributions, even while they managed other financial priorities. In addition, their portfolio was diversified with a meaningful allocation (15 per cent) to alternative investments. And when they reached retirement, they had decumulation options, including the ability to turn their savings into steady income through a VPLA.
Read: ACPM sharpening focus on flexible pension plan design in 2026
“This scenario reflects a smarter DC ecosystem — one that improved retirement readiness for this worker by three years,” noted the report. “For higher earners, the impact is even greater, resulting in improved retirement readiness by as much as five or more years.”
Indeed, the report highlighted two main advances for DC plan members, including:
- Recent updates to regulations, including around VPLAs, will help DC plan members benefit from longevity pooling to reduce the risk of outliving their savings; and
- As target-date funds broaden their allocations into alternatives, plan members can increasingly access and benefit from a growth source that was previously available only to institutional and large investors.
“With both of these innovations, DC plan members maintain control and can tailor both their accumulation and decumulation experience for their financial journey,” said the report.
Read: PIAC focusing on sustainability policies, VPLA regulatory framework in 2026