Products April 3, 2008

Equity Allocation in Retirement Key to Making Savings Last

April 3, 2008 (PLANSPONSOR.com) - New research by Russell Investments suggests as much as 60% of retirement portfolio growth can come from investment returns earned after retirement.

Reported by

Rebecca Moore

According to a Russell press release, the research finding is key to the strategy behind the launch of the Russell Retirement Essentials Portfolio (RREP) in Canada. The portfolio has a 35% allocation to equities and a 65% allocation to bonds.

The RREP is based on the Russell 10/30/60 Retirement Rule – which says that investment earnings during retirement could be made up from 10% savings during the working years, 30% pre-retirement investment growth, and as much as 60% from growth after retirement. The theory all depends on having the right asset mix of bonds and equities, Russell said in the release.

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The RREP is part of Russell’s retirement investment solution, which features a full range of retirement portfolios optimized for three distinct retirement needs: Essentials, Lifestyle, and Estate.

For more information, go to www.dontretirefrominvesting.com .