Putnam Investments by midyear is planning to roll out three retirement income funds specifically designed for defined contribution plans, IRAs and other retirement accounts. The funds will be offered in conjunction with a planning tool to help both advisers and investors create a range of personalized income strategies.
The funds are designed for varying risk tolerance: Putnam Retirement Income Fund Lifestyle 1 (conservative), Putnam Retirement Income Fund Lifestyle 2 (moderate) and Putnam Retirement Income Fund Lifestyle 3 (the most aggressive).
The funds offer monthly income, and investors can change their portfolio holdings as their needs and circumstances change. They are designed to complement Putnam’s suite of 10 target-date funds, the Putnam RetirementReady Funds.
Like those funds, the retirement income funds will integrate Putnam’s absolute-return funds.
“Turning life savings into lifetime income is the toughest challenge millions of Americans face as they move into retirement,” said Putnam President and CEO Robert L. Reynolds. “The stakes are very high. We are seeking to address the breadth of retirees’ ever-changing lifestyle income needs and full range of risk tolerance by offering clear guidance on withdrawal rates that can be adjusted regularly, as markets and their own life circumstances change.”
The products can be used as standalone solutions or in combination with other retirement income vehicles.
The funds will be managed by: Jeffrey L. Knight, head of global asset allocation, and portfolio managers Robert J. Kea and Robert J. Schoen.