A Putnam news release said the asset allocation application enables 401(k) plan participants to model changes to the mix of assets in their retirement savings account and implement the changes in real-time. The new asset allocation function provides participants with an analysis of likely investment outcomes for their account based on their asset class mix.
It also provides plan participants with the option of building their own portfolio to achieve their target asset allocation using the existing funds in their plan.
“The financial crisis made it painfully clear that investors need to change the way they view the retirement savings process by shifting their focus away from simply amassing assets to specifically planning how much actual income will be needed – and can be expected – in retirement,” said Jeffrey R. Carney, Putnam Investments Head of Global Products and Retirement, in the news release. “The most critical factors in determining a successful retirement outcome are an individual’s level of savings and striking an appropriate asset allocation. Putnam’s enhancement to its Lifetime Income Analysis Tool directly addresses the crucial asset allocation element.”