In this article:
Overview
A Target Date portfolio is a type of managed investing account that automatically adjusts your investments for you as you approach your chosen retirement date.
Our Target Date portfolios gradually reduce equity exposure as the target date approaches. For example, a portfolio might start with 90% equities for someone 30+ years from retirement, reducing to approximately 60% equities at retirement, and continuing to reduce during the retirement years.
Before you can open this type of account, your employer must first opt in to the target date funds by contacting Wealthsimple for Business. Once your employer has opted in, the Target Date Portfolio option will be available for you to choose.
Eligible account types
You can invest in a Target Date Portfolio in the following account types if your investment goal is to save for retirement:
- Group RRSP
- Group TFSA
- Group FHSA
- Group Non-Registered
- DPSP
How to open a Target Date portfolio
You can open a Target Date portfolio when you set up a new group retirement account:
- Log in to the Wealthsimple app
- From the Home tab, scroll down and tap Add or move account
- Select Open a new group account
- Select the group account you want to open
- Select Next
- Select Save for retirement and enter your retirement age
- Select the Target Date Portfolio option
- Log in to your Wealthsimple profile
- From the Home page, select + Add an account
- Choose your Employer Group tab
- Select the group account you want to open
- Select Next
- Select Save for retirement and enter your retirement age
- Select the Target Date Portfolio option
Frequently asked questions
Can I visualize how my Target Date portfolio will change over time?
Yes. You can check how we're currently projecting your holdings mix to change over time. Follow the steps below:
- Log in to the Wealthsimple app
- Select your Target Date portfolio
- Beside Holdings, select View details
- Use the slider bar to visualize how your holdings mix will change
- Select the Holdings toggle to see a projected breakdown of your holdings
- Log in to your Wealthsimple profile
- Tap your Target Date portfolio
- Scroll down and tap Holdings
- Swipe left while pressing down on the timeline bar
- Scroll to a future year to visual how your holding mix will change
- Tap the Holdings toggle to see a projected breakdown of your holdings
What happens when I reach my target retirement date?
The Target Date Portfolio is designed to be through retirement, meaning it continues to gradually de-risk even after you reach your target retirement date. This approach aims to preserve capital, provide income, and maintain some growth potential throughout retirement.
Can I change my target retirement date or risk profile?
Yes, you can contact our support team to adjust your target retirement date if your plans change.
Can I customize which assets my Target Date portfolio invests in?
You can't customize the Target Date portfolio.
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