Products August 8, 2011

Prudential Retirement Expands Product Offerings

Prudential Retirement has launched Experience Prudential Retirement, a program for financial advisers and plan consultants to create customized marketing Web sites for prospects and clients.
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The Experience Prudential Retirement program was designed to strengthen collaboration between financial advisers and plan consultants.

Prudential Retirement also expanded its mobile capacities, allowing participants to review their savings portfolios and calculate retirement income on a mobile device. It will also help business partners provide effective, targeted customer service. Prudential says participants will be able to access their balances, personal rates of return, and year-to-date contributions with less navigation, as well as link to the company’s full-service Web site.

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The company is also rolling out its Retirement Income Calculator app, available for free from the Apple Store, Google’s Android Market, or BlackBerry’s App World. Users can input relevant information (their age, salary, current retirement savings, etc.) and calculate their estimated monthly retirement income and estimated monthly retirement income need. The calculator is also available through Prudential’s participant Web site, which provides specific guidance on steps participants can take to achieve their financial goals.

These new products aim to meet growing participant interest in digital tools. According to Eric Feige, vice president of E-strategy, Prudential’s research found that compared to 2010, respondents who are very interested in mobile media grew by 85% in 2011, and those very interested in social media grew by 57%.

“While most people view the total savings they have accumulated and the figure looks big, they are often surprised how quickly the funds decrease,” said Kara Segreto, chief marketing officer of Prudential Retirement. “Our experience with providing the calculator to plan participants has repeatedly shown that when employees view the monthly estimates, they are motivated to increase contributions into their retirement accounts. We see sharing the calculator as one additional, important step in helping Americans achieve retirement security.”

Products August 8, 2011

BlackRock Adds to DC Plan Index Fund Offerings

BlackRock has expanded its menu of index mutual funds for defined contribution plans with nine BlackRock LifePath Index Portfolios and the All Country World Index ex U.S. Fund.
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BlackRock now has a suite of 16 core index mutual funds that sponsors can use to construct a menu of investment choices for their participants. The new funds are expected to be available on most major recordkeeping platforms. 

The LifePath Index Portfolios employ combinations of equity and bond index funds, money market funds, and iShares ETFs. Each portfolio invests all of its assets in a range of classes including U.S. large cap equities, U.S. small/mid cap equities, international equities, U.S. bonds, U.S. inflation linked bonds, and money markets. 

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Offered in five year increments from 2020 to 2055, each portfolio grows more conservative as it approaches its target date; an allocation intended for plan participants at retirement is also offered through the LifePath Index Retirement Portfolio.  The LifePath suite also includes LifePath Retirement Income, a collective trust fund that combines target-date fund technology and annuities with the goal of being able to generate secure income during the retirement years. 

“BlackRock is uniquely positioned to serve small and mid-sized DC plan sponsors that want to apply index strategies in their plans,” said Chip Castille, Managing Director and head of BlackRock’s U.S. and Canada Defined Contribution Group. “With our enhanced line-up we can help those that prefer to implement this form of investment style through their use of mutual funds.”  

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