A MassMutual news release said the new offering allows K plan participants to select an automatically-adjusting investment strategy that is keyed off of when they anticipate retiring.
Each MM Destination Retirement option offers professional management and multiple layers of diversification, the company said.
“These new investment options enable us to help participants more easily choose appropriate, sound investment strategies that can help them build toward a more secure retirement,” said Frederick Castellani, executive vice president and head of MassMutual Retirement Services (MMRS), in the announcement. “The new options also give sponsors an easy and reliable way to answer the common question they get from their participants: ‘Is there an easier way to save for retirement?'”
The MM Destination Retirement Series differs from other asset allocation options because of its automatic roll-down process that invests participants’ assets more conservatively over time.
The portfolio is designed as follows:
- Retirement before 2006 – MM Destination Retirement Income
- 2006 to 2015 – MM Destination Retirement 2010
- 2016 to 2025 – MM Destination Retirement 2020
- 2026 to 2035 – MM Destination Retirement 2030
- 2036 to 2045 – MM Destination Retirement 2040.