Putnam recently unveiled plans to add a new feature to its Lifetime Income Analysis Tool that will help plan participants better understand their retirement needs and improve their retirement planning choices. The new interactive tool add-on will use participants’ health risks, habits and chronic conditions to project their health care expenses in retirement.
Focus on Health-Care Costs in Retirement
The new feature allows the Lifetime Income Analysis tool to use a participant’s health care expense projections and future retirement goals to offer a better estimate of their available retirement income and income gaps on a monthly basis. A breakdown of what the participant will need to spend on health care in retirement is also provided by age. Participants can change 401(k) contribution rates, retirement age, asset mix and other variables to alter the projections.
Putnam Lifetime Income Analysis Tool – New Healthcare Feature
As the healthcare debate rages in Washington, there is increasing uncertainty around how significantly healthcare expenses will impact retirement savings. The addition of the new health care feature on the Lifetime Income Analysis Tool offers Putnam plan participants a more in-depth view of their long-term financial health that goes beyond retirement income projections. By using this tool, participants will better understand the impact and consequences of not only their current savings rate and investment mix but also how their lifestyle choices and healthcare needs will affect their retirement savings plan.
The updated Lifetime Income Analysis Tool is scheduled for release this fall and will be reviewed in full as part of our new 401(k) Monitor research service. For more information on 401(k) Monitor, contact Ben Pousty at 212-832-2002 x-134 or firstname.lastname@example.org.