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In Our Words
Transforming Retirement
Moving from DB to DC
Creating the Next-Generation DC Solution
Focusing on Lifetime Income
Dimensional Managed DC, launching 2012, is designed to help people maintain a comfortable standard of living in retirement.
  • DC plans are the default strategy for employers around the world
  • Traditional DC plans place an unsustainable burden on employees
  • Next-generation DC plans must make it easier for employees to achieve lifetime retirement income
The Managed DC Solution
Providing Meaningful Choices for Plan Participants
Making Adoption Easy for Plan Sponsors
Managing toward a Specific Goal
Optimizing Outcomes
Dimensional Managed DC provides a DB-like benefit inside a DC structure.
  • Provides a fully integrated solution
  • Creates a personalized asset allocation strategy for each participant
  • Manages risk for employers and employees
  • Maximizes the probability of achieving a specific income goal
Empowering Participants
Helping Participants Aim for Enough Income
Asking Questions to Clarify Tradeoffs
Providing Confidence
Dimensional Managed DC gives participants the confidence to take control of their retirement planning.
  • Saving enough money for retirement isn’t easy
  • Most people aren’t comfortable making complex financial decisions
  • Managed DC enables employees to take control of personal decisions and delegate responsibility for investing to professionals
  • Clear communication, goal tracking, and a transparent process give employees more confidence about their retirement
Benefits to Plan Sponsors
Reducing Risk
Using the Most Advanced Technology
Targeting Income for Life
Dimensional Managed DC enables plan sponsors to manage risk while helping employees to meet their future need: an inflation-protected income
for life.
  • Reduces balance sheet and P&L risk for employers
  • Mitigates the risk that employees will not achieve their retirement goals
  • Easily portable
  • Customized to fit individual participants' needs
  • Allows mass customization at low cost
The Consultant Component
Assessing, Monitoring, Modifying, Designing
Working Together
Consultants play a critical role in the design and implementation of the Managed DC system.
  • Consultants determine how to make the system work best within the existing plan design
  • Dimensional's transparent process and sophisticated tools facilitate performance monitoring
  • On the back end, Dimensional collaborates with consultants to design choices for producing a retirement income stream
Science and Practice
Collaborating with Leading Academics
Focusing on the Total Retirement Experience
Dimensional has a simple yet robust business model: Combine great ideas with great execution.
  • Dimensional is engineering a new way to invest for retirement
  • Our goal is to provide an economical way for DC plan sponsors to offer a program that is highly sensitive to each employee's needs and circumstances
  • We are committed to offering the best plan design and investment management implementation
Transforming Retirement
The Managed DC Solution
Empowering Participants
Benefits to Plan Sponsors
The Consultant Component
Science and Practice
 
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What Is Dimensional Managed DC?
Dimensional Managed DC, launching 2012, is a personalized, risk-managed pension solution designed to provide retirees with an inflation-protected income stream for life. Like a defined benefit plan, the solution manages investment decisions for plan participants. Like a traditional defined contribution plan, it reduces balance sheet and P&L risk for plan sponsors.

Dimensional Managed DC is different from other income solutions because it creates an implementation plan for each employee that aims to achieve pre-established goals. It also manages the risk of failure to achieve these goals.
An Integrated Solution
  • Engaging user interface
  • Personalized asset allocation strategy
  • Custom-engineered investment vehicles
  • Monthly portfolio optimization and execution
  • Convenient access to payout options
Next: How It Works
How It Works
Step 1
Participants' input is focused on making a few personal choices: how much income they'll need in retirement, how much money they will contribute out of their salary, and the age at which they hope to retire. Immediate feedback shows participants the likelihood that they will achieve their income goal.
Step 2
Managed DC creates a customized investment plan based upon each participant's personal circumstances and income goal. A patented, science-based algorithm is used to dynamically manage interest rate, market, and inflation risks. Individual plans are rebalanced monthly.
Step 3
During the accumulation years, an interactive planning tool encourages participants to check in regularly to ensure that their plan is on track. Participants can make adjustments to their plan settings any time they wish.
Step 4
When participants reach retirement, Managed DC provides convenient access to payout options such as inflation-protected annuities.
Next: Retirement System Must Be Reformed
Press
Pensions & Investments
DC Plan Innovation
A video in which David Booth discusses defined contribution plan innovations with P&I editorial page editor Barry Burr.
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Press
Pensions & Investments
DC Plan Shortcomings
A video in which Senator Bill Bradley discusses the shortcomings of defined contribution plans.
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Press
Morningstar
The 401(k) Today
A video in which David Wray discusses the latest trends in the 401(k) marketplace.
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Dimensional Retirement (an affiliate of Dimensional Fund Advisors LP) is an investment advisor registered with the Securities and Exchange Commission. Dimensional Managed DC is available to retirement plan sponsors and fiduciaries through Dimensional Retirement. The underlying investments in Dimensional Managed DC are subject to market risks and may fluctuate in value over time. There is no guarantee of achieving the target income payout during retirement.