The vast majority of respondents (83%) are considering options to enhance the sustainability of their pension plans and, of those planning to do so, “changing asset mix” is by far the most popular strategy—more than three times higher than its nearest rivals.
- 83%
of respondents are looking to enhance
their plans' sustainability
Making the right choices
Consistent with respondents’ intent to alter the asset mix of their plans, a survey of Canadian institutional investors conducted by global communications firm Edelman reports that 89% of investors expect to re-weight their portfolios toward alternative investments going forward.1 This would continue a 10-year trend that has seen Canadian pension plans shift their assets to alternatives.2
Which of the following options are you considering to enhance the sustainability of your pension plan?*
Canadian Pension Asset Allocations2
- *May include multiple responses
- **Including real estate and other alternatives
- ***Including annuitize liabilities; change jurisdictions to qualify for solvency funding exemption rules; convert to a jointly-sponsored pension plan; increase the retirement age; join another plan; reduce expected return assumptions; remove indexation provisions; and “sit tight”
- 1Edelman Trust Barometer Special Report: Institutional Investors, November 2020
- 2Willis Towers Watson Global Pension Assets Study 2020