A prominent company sought to gauge the retirement preparedness of its employees, following substantial revisions to their benefits program and recognizing that a considerable segment of their workforce wouldn't receive pension benefits. The company collaborated with PGIM DC Solutions to conduct an extensive analysis using PGIM DC Solutions' retirement income model to determine actionable next steps.
As part of this company's initiative to evaluate retirement income products and solutions for their 401(k) plans, their DC Investment Team realized that they lacked an understanding of their employees' retirement income goals and retirement readiness - a key step in their evaluation process.
To ascertain if employees were on course to achieve their retirement goals, the company's DC Investment Team partnered with PGIM DC Solutions to analyze participant demographic data and identify personalized retirement goals, focusing particularly on employees without pension benefits. This analysis provided the company with personalized retirement income projections for each of their participants and delineated between essential and non-essential income (i.e., needs and wants). This provided a clear view of individual readiness and highlighted areas for potential improvement and focus across different segments.
PGIM DC Solutions presented its findings to the company's DC Investment Team and HR Benefits Team, identifying four main actionable items for the plan sponsor.
Case studies are provided for illustrative purposes only and results may vary.