Service / Dimensional Managed DC
Dimensional Managed DC is a personalized investment strategy designed to help participants convert their working income into an inflation-protected retirement income. It creates and regularly updates a custom portfolio allocation for each participant, steadily targeting a monthly income in retirement.1
To learn more about Dimensional Managed DC, please contact our staff member in your region.
Date: July 2013
2013-07- 1Professor Robert Merton of the MIT Sloan School of Management contends that the right way to think about a pension boils down to four questions: What is the worker's desired retirement income? What is the minimum acceptable income if the desired level cannot be achieved? How much is the worker willing to contribute? And when does he want to retire?
Managed Account Programs Moving Beyond Accumulation
By Luis Fleites, Ignites Research
Date: February 2013
2013-02- 1Ignites Research highlights Dimensional Managed DC's outcome-oriented approach that focuses on customized and sustainable retirement income. This approach sets Dimensional Managed DC apart from many of its competitors who focus on only on accumulation....
Life-Cycle Finance and the Dimensional Managed DC Solution
By Wade Pfau, Advisor Perspectives
Date: May 2012
2012-05-22Advisor Perspectives lauds Dimensional SmartNest's new product for bringing the benefits of defined benefit pensions into a defined contribution world without unduly burdening employers.
Robert Merton: The Individual Plan Man
By Amanda White, Top 1000 Funds
Date: August 2012
2012-08-24A retirement solution that focuses on outcomes and is customised for each participant cannot be met by existing defined-contribution designs, according to Nobel Prize-winning economist, Robert Merton, who advocates a "next-generation DC solution."
How Much Should I Save for Retirement?
By Massi De Santis, PhD and Marlena Lee, PhDUncertainty over one's future income trajectory is often substantial, and can significantly complicate planning for retirement. Our research shows that a saving guideline incorporating information about household income as it changes over time (dynamic saving) can improve retirement success rates for most households relative to a static rule-of-thumb approach.
Rational Pensions for Irrational People: Behavioral Science Lessons for the Netherlands
By Zvi Bodie and Henriette PrastThis paper examines some of the main behavioral patterns that determine personal saving, investment, and retirement decisions, and considers ways to move them in a socially desirable direction. Empirical evidence from other countries is considered in light of proposed changes to the system in the Netherlands.
How to Improve the Experience of Defined Contribution Participants
By Tim Kohn and Warren CormierDC participants may be able to create a better retirement by taking advantage of a new set of products focused on an appropriate income replacement rate and strategies based on "income outcomes" as opposed to "lump sum outcomes."
The Retirement Income Equation
By Marlena Lee, DC DimensionsHow much retirement income is enough? Understanding how to arrive at a target income replacement rate can be helpful for future retirees and plan sponsors alike.
A semiannual magazine written for DC professionals by DC professionals helping you stay in front of the changes affecting our industry.
1. An inflation-protected income stream purchased with the assets in a managed account will only provide a portion of the retirement income reflected in the target income goals. Dimensional Managed DC assumes a person will also receive projected Social Security, DB pension benefits (as applicable), and any other retirement benefits as reflected in that person’s retirement account characteristics.
Dimensional SmartNest LLC is a subsidiary of Dimensional Fund Advisors LP. Dimensional Managed DC is a product licensed by retirement plan sponsors and fiduciaries who elect on their own behalf to make the program available to their plan participants. Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission. 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.