Spending Flexibility and Optimal Portfolio Risk Levels
Retirement is significantly more complex than assumed in most retirement income solutions available to DC participants today.
PGIM RETIREMENT SPENDING PORTFOLIOS
A PGIM RetireWell™ Solution
A MORE PERSONALIZED, SUSTAINABLE RETIREMENT INCOME STREAM FOR PARTICIPANTS
The risks that retirees face in retirement are different than the risks faced by individuals during accumulation. Furthermore, the spending needs of retirees are unique and dynamic. PGIM’s Retirement Spending Portfolios are designed to provide an investment solution that offers more choice than the one-size-fits-all nature of target-date funds, while still making it easier to choose a portfolio versus do-it yourself investment options.
Our set of three PGIM Retirement Spending Portfolios, designed for individuals near and in retirement years, seek to provide a unique balance between downside protection, protecting against the risk of inflation, and the opportunity for growth.
The portfolios are diversified, multi-asset class portfolios, that leverage PGIM’s retirement income framework to better address individuals’ varying retirement spending goals.
KEY FEATURES
The portfolios include real assets and non-traditional asset classes that help better manage retiree risks during decumulation, such as market downturns and inflation.
*Objectives are not guaranteed.
We incorporate our retirement income asset/liability framework that considers essential vs. flexible spending in retirement, allowing us to offer a more flexible strategy tailored to individuals’ varying spending liabilities.
Offered as cost-efficient, diversified, multi-asset portfolios, each of the portfolios seek to strike a unique balance between growth and downside protection, while simultaneously providing protection against the impact that inflation can have on one’s ability to spend in retirement.
FEATURED INSIGHTS
Guided Spending Rates: Rethinking “Safe” Initial Withdrawal Rates
Is the “4% rule” still the best guide? Our model introduces a series of portfolio withdrawal rates that we believe are a better starting place for retirees.
