DEEP RESEARCH · RETIREMENT PENSION SWITCH
Switching from DB to DC
A 13th-year employee prepares to take control of retirement-pension investing through bond and equity diversification
0. Bottom line first
Until last year, only the DB plan was available, but this year my company allowed a switch to DC. I did not switch this year, but I applied to switch to DC next year.
Interpretation: I judged the current high-rate environment to be a good time to begin diversified investing across bonds and stocks. Confidence gained from personal pension investing also influenced the decision. I am aware that this confidence itself may be a warning signal.
1. Background to the switch
I joined the company in 2011, so I think I am now around my 13th year. Until now, only the DB plan was available at work, but starting this year a DC switch became possible. I did not switch immediately this year, but I applied to switch to DC next year.
2. Why now
A DC plan brings greater responsibility for direct management. That is why I thought it would be more meaningful to begin in my 40s rather than in my 50s, and that judgment led me to apply this year.
About 13 years after joining
After joining in 2011, this feels like a point to review retirement-pension management.
High-rate period
I judged it to be a decent time to diversify between bonds and equities.
A switch in the 40s
I thought a DC plan has more meaning if started in the 40s rather than the 50s.
3. Next schedule
The actual operating start will probably be early next year. The company says it will provide DC education from mid-December, so I plan to update related news later.
Have a good day, everyone.