With inflation still squeezing household budgets, interest rates elevated compared to pre-pandemic norms and an ageing workforce heading towards retirement, employees are under more pressure than ever to make the right financial decisions.

For many, their workplace savings plan is the cornerstone of their retirement, but without proper guidance they risk costly mistakes during this critical period, known as the transition risk zone — the 10 years leading up to retirement when employees are most vulnerable to locking in losses if markets decline.

Read: Survey finds confidence key to higher retirement savings

“Accumulation is easy — it’s set it and forget it,” says Glenn Dial, senior retirement strategist at American Century Investments. “But once people hit their 50s, there’s no do-over. That’s when they need to engage with their savings strategy more actively.”

One approach gaining traction is the “100 per cent solution,” which wraps a target-date fund with insurance that guarantees income won’t decline even if markets fall.

“No one wants to give up the upside of market gains, but what you can do is ensure your income won’t go down,” says Dial. “If the market drops, your income stays the same or continues to grow. That kind of protection is what we’re seeing shift from the U.S. into Canada.”

This type of protection is most critical........

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