Products February 22, 2007

'Pudding Index' Measures Retirement Savings

February 22, 2007 (PLANSPONSOR.com) - Pinpoint Performance, Inc. has launched a Web site that compares an individual's 401(k) and IRA balances to a benchmark account that would replace 50% to 60% of the individual's final pay upon retirement at age 65.
Reported by

A company news release said the site, dubbed the Pudding Index, asks for four pieces of information:

  • date of birth
  • gender
  • current pay
  • current total of retirement account balances.

The index then figures the benchmark level of assets and scores the visitor’s actual account balances versus the benchmark amount.

According to the Independence, Missouri-based company, a Pudding Score of 100 or more says retirement assets are ahead of the index level; a lower score says the visitor trails the index’s pace.

In addition to the Pudding Score, the site calculates an age 65 retirement income that starts with today’s balances and assumes future growth and contributions that match the benchmark account levels.

“Unlike calculators that focus on future asset growth, the Pudding Index grades the retirement saver on his or her current balances. This approach engages younger workers, it’s more real and allows workers to easily track their progress over time” said Bill Glasco, spokesperson for Pinpoint Performance, in the announcement.

More information is at http://www.puddingindex.com .

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