NEW YORK—
Putnam hopes that by pointing investors toward actionable steps they can take by saving more, retiring later and changing their portfolio mix—instantly visible on a sliding scale that shows the effects on their monthly retirement income—it will break down retirement savings into incremental steps that will both motivate investors and inspire confidence.
“Every time a participant logs into the site, they will see their account balance as retirement income. Their monthly paycheck will always be front and center,” said Ed Murphy, Putnam managing director, head of defined contribution.
“This is a completely new approach to lifetime income planning that we hope will drive a revolution and serve as a new lens through which to view workplace saving,” said Putnam President and Chief Executive Officer Robert L. Reynolds. “The Holy Grail of retirement income solutions will be found in a lifelong glidepath” with absolute-return strategies at its core, and integrating guaranteed, lifetime income analysis, Reynolds said.
“In 2003, the
The Putnam Lifetime Income Analysis Tool will initially be available to the 401(k) plans Putnam administers, with a roll out to financial advisers in three months, said Jeffrey Carney, senior managing director, head of global marketing, products and retirement at Putnam.
Besides the absolute-return funds that Putnam now includes in its family of Retirement Ready target-date funds, Reynolds said, the company is developing annuities for retirees, in partnership with sister company
Charles A. Ruffel, founder and director of