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%.
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