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Prudential Retirement sale would be a cautionary tale about innovation

Potential Pru Retirement sale a cautionary tale of a 401(k) innovator It is no wonder, but certainly disappointing, that one of the industry’s most innovative providers, Prudential Retirement, is reportedly exploring a sale. That highlights how much record keeping has become a commodity focused on scale and costs. April 20, 2021 3 MINS At an industry event a few years ago, a $600 million plan sponsor said that anyone approaching him or his committee with radical innovations would immediately be escorted to the exit. As investment professionals, we are trained to weigh the risk against the benefit. There’s little benefit for plan sponsors to radically innovate but lots of risk. What’s the upside for providers?

Simplifying the Retirement Planning Message

Simplifying the Retirement Planning Message Employees need to be taught how to manage finances and save for the future before being advised on how to create an income stream in retirement. Reported by As inevitable as retirement is, why is properly preparing for it so difficult? It could be that participants are preoccupied with other concerns. Most (70%) of the respondents to a recent Schroders retirement survey said they don’t have enough savings to add to a retirement plan, while others reported that they have other financial priorities (60%) or that the future is too uncertain to plan for (50%). And as industry professionals encourage participants to prepare for their future, many people are reluctant to add what they believe is an insufficient amount to their retirement plans. Instead of adding what they can afford to, they fail to add anything at all, the survey found.

On the Minds of Plan Sponsors | PLANSPONSOR

On the Minds of Plan Sponsors Attendees of PLANSPONSOR’s most recent virtual conference heard about how the impacts of COVID-19 call for a new, more robust approach to financial and retirement benefits. Reported by Kicking off the 2021 PLANSPONSOR virtual conference “What’s on the Minds of Plan Sponsors,” the keynote address, sponsored by Prudential, explored how the effects of COVID-19 call for a new, more robust approach to retirement plans. “I speak with plan sponsors on a daily basis and learn what is top of mind,” said Michael Knowling, head of client relations and business development at Prudential Retirement.

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