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How to invest your contributions to a DC pension plan Add to ...

You are responsible for investing all contributions – and can choose from a variety of investment options​.

You are responsible for investing all contributions made to your defined contribution (DC) plan account. In most DC plans, your employer will offer you a variety of professionally managed investment funds to choose from.

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Choosing your investments

Your employer will provide you with investment information about each fund. Choose the fund or mix of funds to suit your situation. This will depend in part on your tolerance for investment risk and how close you are to retirement. Your employer may also provide online and paper tools to help you make your choices.

Learn more about investing.

Caution: The value of your DC plan isn’t guaranteed. It can change depending on the type of investments you hold. Understand the risks before you make your investment decision.

Single fund portfolio options

Your employer may offer “single fund” portfolio options that let you invest in just 1 fund to meet your retirement goals.

The advantages of single fund portfolios are simplicity and convenience. You decide on the fund and leave the ongoing investment decisions and portfolio adjustments to the professional money manager.

Example – target date funds


  • A “target date” fund will take care of the active decision making for you over the course of your career.
  • These funds automatically adjust the mix of stocks, bonds and cash investments as you get closer to your retirement date, becoming more conservative over time.
  • You need only invest in the fund that most closely matches your expected retirement date.
Example – target risk funds


  • “Target risk” or “asset allocation” funds are designed to match a particular level of investor risk tolerance – from very conservative to very aggressive.
  • Each fund is rebalanced regularly to ensure that its target asset mix is maintained.
  • You need only to invest in the fund that most closely matches your investor risk tolerance.

Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca

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