Putnam launches 3 retirement income funds, tool

Putnam Investments said Monday it has launched three new mutual funds geared toward helping investors meet their ongoing income needs in retirement, as well as a new calculator to help them figure out how to make their money last.

An estimated 7,000 baby boomers turn 65 every day, which means trillions of dollars will soon begin to flow out of 401(k) and other retirement savings accounts. That means the vast sums professional money managers have been helping workers accumulate ? and generating fees from ? will be pulled out, said Jeff Carney, head of product marketing for Putnam.

“That’s not always easy because we’re helping them take their money out of our industry, it decreases our revenue,” Carney said.

Companies like Putnam are aggressively working to come up with products and ideas that enable them to keep these assets in-house through a client’s retirement years. A significant challenge for retirees is ensuring that their savings continue to generate enough income during their retirement years.


Putnam’s new group of funds is intended for retirees, and those who expect to retire soon or who otherwise plan to soon begin making withdrawals. The Lifestyle 1 (PRMAX), Lifestyle 2 (PRYAX), and Lifestyle 3 (PISFX) funds, follow a conservative, moderate and aggressive investment approach respectively.

The funds are run by a team of four of the company’s portfolio managers including Jeffrey L. Knight, head of global asset allocation.


The retirement income analysis tool can provide an estimate of potential monthly income in retirement, and how that income level might change with different risk parameters. It also provides an indication of how long the income might last, based on an expected retirement age and retirement time horizon.

The tool asks investors to input current assets, the age at which they expect to begin drawing down funds, income needs, and retirement time horizon. From there it generates custom projections of expected monthly income for model portfolios of varying levels of aggressiveness.

A version of the tool is designed for use by financial advisers, but a consumer model is available at www.putnam.com/retirementincome .