Members

Investment decisions

When it comes to choosing how to invest your pension funds, there is no right answer.

Much depends on your age, your other assets, your planned retirement date and your comfort with risk.

We encourage you to review your personal circumstances with one of our Retirement and Pension Advisors or a qualified financial advisor at your financial institution to make a decision that's right for you.​

Investment choices

You can choose how to invest your pension funds in the CSS Pension Plan, though you're not required to.

What are my choices?

The CSS Pension Plan offers four investment funds ​ – a Money Market Fund, Bond Fund, Balanced Fund and Equity Fund. Each fund – or combination of funds – has different levels of risk and expected returns. How you choose to invest your pension funds can impact your retirement plan.​

Do I have to choose?

No. Members who do not want to set and monitor their own asset mix are automatically invested into the Balanced Fund. The Balanced Fund is the Plan's original diversified investment option.​

Can I change my mind?

Yes. We understand that life circumstances and retirement plans can change, so you are free to move as little or as much of your pension funds as you like to any of the four funds, at any time. See changing your investments​ for instructions on how to do so.

What should I consider?

To make an informed choice, you should consider the following questions:

1. ​When will I retire?

2. How much pension funds will I need?

3. What type of retirement income do I want?

Your answers to these questions will affect how your pension funds should be invested. For help answering these questions, you should consult one of our Retirement and Pension Advisors or a qualified financial advisor at your credit union or bank.

Investment risk and return

Market timing risk

"Market timing" is the strategy of moving pension funds among the Plan's investment options in response to short-term market conditions.

Although you are free to do so, here are some things to think about before you take action.

Investing in retirement

During most of your working life, your investment strategy should be focused on growing your pension funds. Investing in a broadly diversified portfolio of high-quality investments may produce moderate growth over the long term with managed short-term volatility.

If this is your objective, you may wish to stay invested in the Plan’s default investment option – the Balanced Fund. It is professionally managed, automatically rebalanced and invests approximately 55% in equities and 35% in fixed income and 10% real estate investments.

If you’re willing to take on more risk of short-term losses to have the opportunity to earn higher average returns, you may wish to allocate more of your pension funds to the Plan’s highest risk/return option – the Equity Fund. You could do this by re-allocating part of your pension funds from the Balanced Fund to the Equity Fund, or by re-allocating all your pension funds to the Equity Fund and Bond Fund in the proportions you desire. 

Members are strongly encouraged to get advice before taking action. Feel free to contact one of our Retirement and Pension Advisors or try our risk tolerance estimator to assess your level of comfort with risk.

If you want to reduce your risk of short-term losses and be willing to earn lower average returns, you may wish to allocate more of your pension funds to the Plan’s lower risk/ return option – the Bond Fund. You could do this by re-allocating part of your pension funds from the Balanced Fund to the Bond Fund, or by re-allocating all your pension funds to the Bond Fund and Equity Fund in the proportions you desire. 

You might also want to consider increasing the proportion of your pension funds invested in bonds as you approach retirement if you intend to get a traditional monthly pension from the Plan. This strategy could be useful since bond values tend to increase when long-term interest rates fall and make monthly pensions more expensive. Members are strongly encouraged to get advice before taking action. Feel free to contact one of our Retirement and Pension Advisors or try our risk tolerance estimator to assess your level of comfort with risk.

As you approach retirement your investment time horizon shortens. Growth tends to become less important while preserving your pension funds becomes more important. If you plan to retire soon and have already saved enough, then depending on the type of retirement income you want, you might want to increase the weighting that you have invested in the Bond Fund while allocating a portion of your account to the Plan’s most conservative option – the Money Market Fund.  

The Money Market Fund can be used as a spending reserve for members intending to take a Variable Benefit payment from the CSS Pension Plan when they retire. The Money Market Fund can also be used to “exit the markets” for members nearing retirement and planning to take a traditional monthly pension, or those members intending to leave the Plan and invest in GICs or term deposits after retirement. Members are strongly encouraged to get advice before taking action. Feel free to contact one of our Retirement and Pension Advisors or try our risk tolerance estimator to assess your level of comfort with risk.