Stock up on stocks and retire earlier

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Stock up on stocks and retire earlier GlobeInvestor

The day's numbers are displayed at the New York Stock Exchange on Feb. 25, 2020. In spite of the recent chill on markets, investors need to take on more risk, writes Rob Carrick.This is a hell of a time to tell people they need to take more risk with their retirement investing.

“Exposure to diversified equities over long periods of time will make employees more retirement ready,” said Jillian Kennedy, partner and leader of defined contribution and financial wellness at Mercer Canada. “If we had somebody who was saving 3 per cent [of their income] and they moved up to 5 per cent, it didn’t actually make as much of a difference as changing the way they invested.”

Mercer’s retirement barometer is based on analysis of roughly 1,000 workplace retirement savings programs, notably group registered retirement savings plans and defined contribution pension plans. In both of these programs, employees choose from a selection of investment options that are funded with their own savings and matching employer contributions.

 

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