Putnam Investments has come out in support of the Department of Labor's proposed rule regarding lifetime income illustrations on 401(k) account statements – with plenty of reservations, however.
The giant 401(k) plan provider already helps plan participants estimate what their savings will net them on a monthly basis when they retire, and is worried that rules that are too stringent will derail what it already has in place.
"We do have concerns that the rule proposes a highly standardized approach that, among other factors, utilizes a fixed retirement age and investment rate of returns that are not based on the actual asset allocation of participant accounts," Putnam said in a letter to the DOL. "We are also concerned by the exclusion of Social Security benefits and outside retirement assets from the proposed projection."
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