Prudential Financial Inc.,Newark, NJ, (NYSE:PRU) will be the exclusive sponsor of the Center for Retirement Research at Boston College’s National Retirement Risk Index.
The Index, which is highly regarded within the industry, measures the percentage of working-age Americans at risk of not being able to maintain their current standard of living during retirement. One of Prudential’s acts as a sponsor will be to underwrite a number of studies to be conducted by the Center for Retirement Research that will be pertinent to the study.
The Index is a strong indicator of the changes that have taken place in the retirement landscape since the economic crisis began in 2008. According to recent data from the Index, the percentage of households at risk of not being able to maintain their standard of living in retirement has risen by 20% in data compiled from 1989 to 2009.
The next update for the Index will be in the Spring of 2012.
“The Index underscores a growing problem in America today. Retirement needs are increasing due to longer life spans and rising health care costs, while retirement resources are shrinking due to declining Social Security replacement rates and insufficient savings in 401(k)s, said Alicia Munnell, director of the Center for Retirement Research.