T. ROWE PRICE LAUNCHES PERSONALIZED RETIREMENT MANAGER, AN INDUSTRY FIRST
T. Rowe Price has launched Personalized Retirement Manager (PRM), an innovative service that combines target date asset allocation with full personalization to enhance retirement outcomes. PRM uses personal data to create tailored asset allocations for individuals, adjusting throughout their retirement savings journey. It can be selected as a Qualified Default Investment Alternative (QDIA) for 401(k) participants.
Key features of PRM include:
- Uses recordkeeping data and optional additional information for personalization
- Designed by T. Rowe Price's target date solutions team
- Comparable pricing to existing target date solutions
- Already in use by several clients for participants nearing retirement
The launch aligns with growing interest in personalization among plan sponsors, with 14% currently offering dynamic QDIA solutions and 51% considering or exploring them.
T. Rowe Price ha lanciato Personalized Retirement Manager (PRM), un servizio innovativo che combina l'allocazione degli attivi in base alla data target con una piena personalizzazione per migliorare i risultati della pensione. PRM utilizza dati personali per creare allocazioni degli attivi su misura per gli individui, adattandosi durante il percorso di risparmio per la pensione. Può essere selezionato come Qualified Default Investment Alternative (QDIA) per i partecipanti al 401(k).
Le caratteristiche principali di PRM includono:
- Utilizza dati di registrazione e informazioni aggiuntive opzionali per la personalizzazione
- Progettato dal team di soluzioni a data target di T. Rowe Price
- Prezzi comparabili a quelli delle esistenti soluzioni a data target
- Già utilizzato da diversi clienti per i partecipanti prossimi alla pensione
Il lancio è in linea con il crescente interesse per la personalizzazione tra i sponsor dei piani, con il 14% che attualmente offre soluzioni QDIA dinamiche e il 51% che le sta considerando o esplorando.
T. Rowe Price ha lanzado Personalized Retirement Manager (PRM), un servicio innovador que combina la asignación de activos con fecha objetivo y una plena personalización para mejorar los resultados de jubilación. PRM utiliza datos personales para crear asignaciones de activos a medida para individuos, ajustándose a lo largo de su camino de ahorro para la jubilación. Se puede seleccionar como Qualified Default Investment Alternative (QDIA) para los participantes del 401(k).
Las características clave de PRM incluyen:
- Utiliza datos de registro e información adicional opcional para la personalización
- Diseñado por el equipo de soluciones de fecha objetivo de T. Rowe Price
- Precios comparables a las soluciones de fecha objetivo existentes
- Ya en uso por varios clientes para participantes que se acercan a la jubilación
El lanzamiento se alinea con el creciente interés en la personalización entre los patrocinadores de planes, con un 14% que actualmente ofrece soluciones QDIA dinámicas y un 51% que las está considerando o explorando.
T. Rowe Price는 은퇴 결과를 향상시키기 위해 목표 날짜 자산 배분과 완전 개인화를 결합한 혁신적인 서비스인 Personalized Retirement Manager (PRM)를 출시했습니다. PRM은 개인 데이터를 사용하여 개인을 위한 맞춤 자산 배분을 생성하며 은퇴 저축 여정 전반에 걸쳐 조정됩니다. 401(k) 참가자를 위한 Qualified Default Investment Alternative (QDIA)로 선택될 수 있습니다.
PRM의 주요 기능은 다음과 같습니다:
- 퍼스널라이제이션을 위한 기록 데이터 및 선택적 추가 정보를 사용합니다.
- T. Rowe Price의 목표 날짜 솔루션 팀이 설계했습니다.
- 기존 목표 날짜 솔루션과 비교할 수 있는 가격입니다.
- 은퇴에 가까운 참가자를 위해 여러 클라이언트가 이미 사용하고 있습니다.
이번 출시는 계획 스폰서들 사이에서 개인화에 대한 관심이 높아지고 있는 가운데 나왔으며, 현재 14%가 동적 QDIA 솔루션을 제공하고 있고, 51%가 이를 고려하거나 탐색하고 있습니다.
T. Rowe Price a lancé Personalized Retirement Manager (PRM), un service innovant qui combine l'allocation d'actifs à date cible avec une personnalisation complète pour améliorer les résultats de la retraite. PRM utilise des données personnelles pour créer des allocations d'actifs sur mesure pour les individus, s'ajustant au cours de leur parcours d'épargne retraite. Il peut être sélectionné comme Qualified Default Investment Alternative (QDIA) pour les participants au 401(k).
Les caractéristiques clés de PRM comprennent :
- Utilise des données de tenue de dossiers et des informations supplémentaires optionnelles pour la personnalisation
- Conçu par l'équipe de solutions à date cible de T. Rowe Price
- Prix comparables aux solutions à date cible existantes
- Déjà utilisé par plusieurs clients pour des participants proches de la retraite
Le lancement est en phase avec un intérêt croissant pour la personnalisation parmi les sponsors de plans, avec 14 % offrant actuellement des solutions QDIA dynamiques et 51 % les considérant ou les explorant.
T. Rowe Price hat Personalized Retirement Manager (PRM) gestartet, einen innovativen Service, der die zielterminbasierte Vermögensallokation mit vollständiger Personalisierung kombiniert, um die Altersvorsorge zu verbessern. PRM nutzt persönliche Daten, um maßgeschneiderte Vermögensallokationen für Einzelpersonen zu erstellen, die sich während ihrer Altersvorsorge-Reise anpassen. Es kann als Qualified Default Investment Alternative (QDIA) für 401(k)-Teilnehmer ausgewählt werden.
Die Hauptmerkmale von PRM sind:
- Verwendet Aufzeichnungsdaten und optionale zusätzliche Informationen zur Personalisierung
- Entwickelt vom Zielterminlösungs-Team von T. Rowe Price
- Preislich vergleichbar mit bestehenden Zielterminlösungen
- Bereits von mehreren Kunden für Teilnehmer, die sich dem Rentenalter nähern, verwendet
Der Start fällt mit dem wachsenden Interesse an Personalisierung unter den Planträgern zusammen, wobei 14 % derzeit dynamische QDIA-Lösungen anbieten und 51 % diese in Betracht ziehen oder erkunden.
- Launch of innovative Personalized Retirement Manager (PRM) service
- PRM can be selected as a Qualified Default Investment Alternative (QDIA)
- Designed by the same team behind T. Rowe Price's successful target date solutions
- Comparable pricing to existing target date solutions
- Already being used by several T. Rowe Price recordkeeping clients
- Growing interest in personalization among plan sponsors (14% offering, 51% considering)
- None.
Insights
T. Rowe Price's launch of Personalized Retirement Manager (PRM) represents a significant innovation in the retirement savings industry. By combining target date strategies with personalization, PRM addresses a growing market demand and potentially enhances T. Rowe Price's competitive position.
The service's ability to be selected as a Qualified Default Investment Alternative (QDIA) could drive increased adoption and assets under management. With
However, the impact on profitability remains unclear, as the article mentions "comparable pricing" to existing solutions. The success of PRM will likely depend on its ability to deliver superior outcomes and attract new clients, rather than immediate margin expansion.
The launch of PRM aligns with key market trends in the retirement industry. With
The survey data showing
The focus on personalization for near-retirees addresses the growing disparity in retirement savings among DC plan participants, potentially positioning T. Rowe Price as a leader in addressing retirement inequality. This could enhance the company's reputation and appeal to socially conscious investors and plan sponsors.
Firm combines its identical, underlying target date asset allocation methodology with full personalization to help drive better retirement outcomes
PRM can be selected as the Qualified Default Investment Alternative (QDIA) for participants and uses personal information available through 401(k) recordkeeping data, such as account balance, contribution rate, and income. Participants can then choose to add additional information—retirement goals, a spouse or partner's assets, household assets outside the plan, and other relevant factors—to further refine their asset allocation. Participants have the flexibility to engage as little or as much as they like; and the more they engage, the more personalized their experience will be.
The service is proprietary to the firm and was designed by the same professionals behind T. Rowe Price's target date solutions, using identical underlying strategies, allowing clients to add personalization within a familiar investment framework and with comparable pricing. PRM is already being used as a QDIA by several T. Rowe Price recordkeeping clients for participants nearing retirement. The firm also intends to evolve the platform to incorporate retirement income advice in the future.
"With advances in technology, leveraging personal data to build customized asset allocation is the future of target date solutions," said Wyatt Lee, head of Target Date Strategies at T. Rowe Price, whose team manages
T. Rowe Price's latest white paper further analyzes the impact of personalization and the growing desire for it among plan sponsors. Key findings from the paper include:
- Target Date products are ubiquitous in the retirement savings landscape. According to T. Rowe Price's annual 401(k) benchmarking report,
98% of the firm's defined contribution recordkeeping clients offered them in 2023. PRM allows plan sponsors the opportunity to continue offering target date solutions and incorporate personalization as an additional and complementary lever to improve retirement outcomes. - There is a growing interest in personalization from plan sponsors. A recent T. Rowe Price survey found that
14% of Defined Contribution (DC) plan sponsors currently offer dynamic QDIA solutions that transition participants from a traditional target date investment to a more personalized strategy as they near retirement. Another51% are either actively considering or interested in exploring dynamic QDIAs. - Implementing in-plan personalization gives plan sponsors the ability to serve a more diverse set of plan participant journeys. T. Rowe Price's analysis of the 2022 Federal Reserve's Survey of Consumer Finances found that retirement savings disparities grow over time among those who are currently participating in a DC plan. This disparity is most evident when nearing retirement age. This finding supports the use of a dynamic QDIA structure to facilitate the introduction of personalization at a time when it is likely to have the greatest impact on an individual's optimal outcomes.
"We observe growing demand for personalized solutions in the industry," said Jessica Sclafani, global retirement strategist at T. Rowe Price and author of the white paper. "While target date solutions and personalization typically exist separately, Personalized Retirement Manager combines the two, offering T. Rowe Price's trusted target date methodology alongside the power of personalization. Our goal is to help participants feel more confident that their investments are aligned to their unique circumstances and long-term goals."
ABOUT T. ROWE PRICE
Founded in 1937, T. Rowe Price (NASDAQ – GS: TROW) helps individuals and institutions around the world achieve their long-term investment goals. As a large global asset management company known for investment excellence, retirement leadership, and independent proprietary research, the firm is built on a culture of integrity that puts client interests first. Clients rely on the award-winning firm for its retirement expertise and active management of equity, fixed income, alternatives, and multi-asset investment capabilities. T. Rowe Price serves millions of clients globally and manages US
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SOURCE T. Rowe Price Group
FAQ
What is T. Rowe Price's Personalized Retirement Manager (PRM) and how does it work?
Can T. Rowe Price's PRM be used as a Qualified Default Investment Alternative (QDIA) for 401(k) plans?
How does the pricing of T. Rowe Price's PRM compare to traditional target date funds?
What percentage of plan sponsors are interested in dynamic QDIA solutions like T. Rowe Price's PRM (TROW)?
