At retirement, members are likely to use a significant proportion of their retirement account to purchase an annuity (level, fixed increase, index-linked etc.) which will give an income for life.
The IMI Retirement Fund is a wrapper for a blend of passive bond funds selected by the Trustee for the pre-retirement phase of the RSP lifestyle, to give greater certainty to members by moving in line with factors that affect the value of annuities (long term interest rates and inflation expectations). The funds selected aim to:
Have lower volatility than the investments in the growth phase, giving greater certainty of the final value of the RSP account;
Maintain purchasing power by keeping up with inflation;
Move in line with long term interest rates; and
Move in line with inflation expectations.
The funds in the IMI Retirement Fund are individually also available for members wishing to Self Select, the proportions are: