If you’re within five years of retirement, chances are you’re paying closer attention to your pension assets than you used to. That’s normal.

For many members, the investment side of their pension hasn’t needed much attention over the years. Contributions went in. The default Balanced Fund did its job. Life and work took priority.

Now retirement is closer and the question shifts from “How much can I grow my investments?” to “How do I protect what I’ve built?”

That’s where rebalancing comes in.

It may sound complicated, but at its core, rebalancing is about lining up your savings for when you’ll need them and reducing the risk of being forced to sell at the wrong time.

What “rebalancing” really means (in plain language)

Over time, your savings don’t grow evenly.

Some investments go up faster than others. Some lag behind. After a few strong or weak market years, your mix of equities, bonds, and real assets can slowly drift even if you never make a change yourself.

Rebalancing simply means adjusting your asset mix back to where you want it.

Think of it like routine maintenance. You’re not rebuilding the engine; you’re just making sure everything is still aligned and running smoothly.

The four fund options and the role each one plays

You don’t need to know market jargon to understand how the four fund options work together. Each one has a job.

Balanced Fund – Mix of growth and stability

The Balanced Fund combines equities, bonds and real assets into one option. Real assets (such as infrastructure or real estate‑related investments) can add diversification and help smooth returns over time.

Best used for: Members who want a single, diversified option that balances growth and risk.

Equity Fund – Growth

This fund is built for long‑term growth. It can rise and fall more sharply in the short term, but over time it’s meant to grow your savings.

Best used for: Money you won’t need for many years.

Bond Fund – Stability

This fund is generally steadier than equities and tends to move less dramatically. It won’t grow as fast, but it can help smooth out market ups and downs.

Best used for: Reducing volatility as retirement gets closer.

Money Market Fund – Buffer

This is the most conservative option. It’s designed to preserve value rather than grow it.

Best used for: Money you expect to use soon, especially early retirement income.

Why rebalancing matters more in the last five years

Earlier in your career, market swings mattered less. You were still contributing, and you had time to recover from downturns.

That changes as retirement approaches.

The years just before and after retirement are when:

• Your savings balance is at its highest
• New contributions may slow or stop
• Withdrawals may begin soon

As discussed in our earlier article on sequence of returns risk, for members choosing the Variable Benefits option, market losses early in retirement can have a larger and longer‑lasting impact, especially if you’re withdrawing income at the same time. 

Rebalancing can help by:

• Reducing the chance you’ll need to sell growth investments during a downturn
• Making sure short‑term spending money isn’t exposed to short‑term market swings
• Giving you more predictable access to income when you need it

A simple example

Let’s say Maria is 60 and planning to retire in two years.

She’s been in the Balanced Fund for most of her career. It’s worked well, but she’s starting to think about the first few years of retirement income.

Rather than change everything, Maria decides to:

• Choose the Variable Benefits option and keep most of her savings in the Balanced and Equity Funds for longer‑term growth
• Move about one year of expected retirement spending into the Money Market Fund

If markets drop just as Maria retires, she can use the money market portion to cover withdrawals without having to sell investments that may be temporarily down.

That’s rebalancing in practice. Not dramatic. Just practical.

Rebalancing doesn’t mean “moving everything”

This part matters.

Rebalancing is not an all‑or‑nothing decision. For most members, it’s gradual.

You might:

• Slowly reduce equity exposure over time
• Build a cash buffer for early retirement needs
• Top up a fund that’s fallen behind after a volatile year

Small adjustments can lower risk and reduce stress, without giving up growth altogether. Keeping some money invested for growth is also important, because retirement can last 20 or 30 years, and you want your savings to keep working so you don’t outlive them.

So how do you actually rebalance?

You don’t have to figure this out on your own.

1. Use the CSS Risk Tolerance Estimator

The Risk Tolerance Estimator helps you think through your comfort with risk, time horizon and goals. It provides guidance on an investment mix that fits your situation as retirement approaches.

It’s a good starting point, especially if you’re not sure where to begin.

2. Talk to the CSS Advisory Team

Sometimes it’s easier to talk things through.

The CSS Advisory Team can:

• Walk you through the four fund and retirement vehicle options
• Help you understand trade‑offs
• Discuss how rebalancing fits with your retirement plans

There’s no single “right” answer, just choices that need to fit you.

3. Attend a CSS It’s Your Plan webinar

How often should you rebalance?

There’s no need to watch markets every day.

Many members review their mix:

• Once a year
• When their retirement timing becomes clearer
• After a significant market move

The goal isn’t to be perfect. It’s to avoid ending up with more risk than you intended at this stage of life.

Bringing it all together

If you’ve been in the Balanced Fund for years, you’ve been using a well‑diversified option that has helped many members grow their savings.

As retirement gets closer, rebalancing simply gives you a way to:

• Reduce surprises
• Create a buffer against early‑retirement market swings
• Feel more confident about accessing your savings when you need them

You don’t need to become an investment expert.

You just need your savings working with you as retirement approaches.