1. Managing Defined Contribution Investments for Retirement Income
Meeting Data/Data as of
November 15, 2011

2. Participant Research Shows That There Is a Need for New, Professionally-Managed Income Solutions
A majority of participants would rather use a professional investment expert when it comes to money management and investing in a DB-like option.
Investment Management
Prefer that a professional investment expert make decisions about how to invest money in the plan
Spending Management
Prefer to put retirement nest egg in account that manages how much is spent each year to ensure participant doesn’t run out of money
Dimensional/Boston Research Group study of 1,000 plan participants in January 2011.
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3. Participants Also Desire More Certainty in Terms of Their Expected Benefits Participant Response When Asked to Choose
Wealth maximization at the risk of not having
enough money for a minimum acceptable lifestyle at retirement
Wealth outcomes in a range between
minimum acceptable to a comfortable lifestyle at retirement
Dimensional/Boston Research Group study of 1,000 plan participants in January 2011.
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4. Retirement Confidence Findings
Know how much money is need to accumulate
in order to live desired lifestyle in retirement
On track to have enough money in retirement to live desired lifestyle
Dimensional/Boston Research Group study of 1,000 plan participants in January 2011.
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5. QDIA Income Solutions Must Be Designed Around a Goal
To give every participant the best possible chance of having a successful retirement.
They’ll be “successful” if they can maintain their standard of living.
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6. A Solution Must Consider Each Employee’s Essential and Desired Income
What they need at retirement: Essential
Less than this income will not allow them to retire successfully.
What they desire at retirement: Desired
More than this income is attractive only if it is “risk free.”
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7. Appropriately Structured Investment Strategies Can Narrow the Distribution of Participant Outcomes
Essential
Desired
Dimensional Managed DC 6
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8. Participants Need to Understand the Relevant Tradeoffs
Participant Action
Probability of Achieving Desired Retirement Income
Goes Up
Goes Down
Raise Desired Income Target 
Raise Essential Income Target
Contribute More
Work Longer 7
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9. Retirement Income Options
Effectiveness of Hedging
Options
Longevity
Risk
Inflation
Investment
Interest Rate
Income
Nominal Immediate Income Annuity
Immediate Income Annuity
with CPI rider
Variable Annuity
with guaranteed income floors
Longevity Insurance
Laddered TIPS Strategy
IRA
with 60/40 allocation
Control 8
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10. Disclaimer
The underlying investments in Dimensional Managed DC are subject to market risks and may fluctuate in value over time. There is no guarantee of achieving the target income payout during retirement. Income from retirement payout contract depends on the claims-paying ability and strength of the issuing insurance company. Dimensional Retirement (an affiliate of Dimensional Fund Advisors LP) is an investment advisor registered with the Securities and Exchange Commission. Dimensional Managed DC is available through Dimensional Retirement. Investing entails risks, including possible loss of principal. No assurances or guarantees are given regarding the performance of any investment.
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