“We know that many Americans are struggling with substantial retirement income challenges today,” Srinivas Reddy, senior vice president of institutional income for Prudential Retirement, said in a statement. “We believe that people, most notably baby boomers, recognize they must shoulder more personal responsibility to finance longer and more expensive retirements.”
A recent paper by Prudential, “What Employers Lose In The Shift: From Defined Benefit to Defined Contribution Plans … And How to Get It Back,” found that the success rate of a defined-contribution plan using a 4% withdrawal rate and 60 basis points of expenses is 75% by age 95. Plan participants who are planning on using a 4% withdrawal rate will have to save more money, according to Prudential. ”No matter how much DC participants save for retirement, those with a diversified portfolio remain exposed to the risk of a significant decline in their DC assets at critical times, such as just before or after retirement,” the paper said.
“This new website is the latest in a series of digital tools that we have brought to the marketplace to assist plan consultants, advisors and plan sponsors in understanding Prudential Retirement full suite of retirement income solutions and how they can add value to a company’s retirement plan,” Kara Segreto, chief marketing officer of Prudential Retirement, said in a statement.