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Reducing Risk as Workers Near Retirement

May 11, 2009

Current situation

More 401(k) plans are offering target-date lifecycle funds, which change their allocation of investments to reduce risk as workers near retirement.

Retirement challenge

Some lifecycle funds had excessive allocations to equities and lost heavily in 2008, even for people very near retirement.

Bob Reynolds’ Retirement Reform Agenda

Limit the share of equity investments in the mature phase of lifecycle funds for people nearing retirement or in retirement.

This is one the proposed retirement savings reforms proposed by Bob Reynolds, President and CEO of Putnam Investments. For the full list, read the blogs in the Workplace Savings 3.0 category and see the document embedded below.

Bob Reynold’s Retirement Reform Summary Bob Reynold’s Retirement Reform Summary Putnam Investments

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