Putnam Investments announced Thursday that the Lifetime Income Analysis Tool it developed for 401(k) plans to show investors how much monthly income their savings will deliver, has motivated investors to increase their retirement savings rate by an average of 23%. Participants can use the tool to change their retirement date, portfolio mix and contribution rate to immediately see the impact.

Nearly 34% of the 401(k) participants who used the tool in 2010 changed their deferral rates, with 80% increasing their contributions by an average of 23%. This boosted the deferral rate from 7% of income to 8.6%.

“The challenge that working Americans face to save for successful retirements has never been greater,” said Putnam CEO Robert L. Reynolds. “There’s a huge gap between the way people hope or expect to live in retirement and how they’re actually saving to reach their goals. One of the most powerful ways to close that gap is to first show defined contribution savers how far along they are toward reaching the monthly income they will need once they stop working—and then let them take immediate action to improve their prospects. Putnam’s Lifetime Income Analysis Tool does exactly that.”

Edmund F. Murphy III, director of defined contribution services at Putnam, added: “We are motivating workers to take action by shifting the ‘lens’ through which they view their retirement savings and focusing on what really matters: where they stand [and] what they can do to help improve their position, in a simple interactive manner that helps to alleviate anxiety and inertia.”

A recent Employee Benefit Research Institute study found that 90% of workers would like their 401(k) statements to show them how much their retirement savings would translate to estimated monthly retirement income.