Personalization – the future of DC investing
Retirement plan sponsors are looking to you for guidance in helping them meet their fiduciary responsibilities. We can help identify and provide investment solutions for all types of investors that can help you and your retirement plan sponsor clients succeed.
We’ve found that most retirement plan participants fall into the “do it for me” category where they look to their plan sponsors for guidance. For these participants, we offer Personalized Retirement Accounts (PRA).
An overview of Personalized Retirement Accounts
PRA is a managed account solution customized to individual DC plan participants that leverages technology to integrate with recordkeepers and plan sponsor data.
PRA offers financial advisors, retirement plan sponsors and plan participants an outcome-oriented solution that adapts over time and is designed to help get and keep participants on track to meet retirement income goals. It can be used as the plan’s Qualified Default Investment Alternative (QDIA) or as an optional choice within the plan.
It's time to get personal about retirement investing
Which retirement account would you choose?
Personalized Retirement Accounts
Personalized Retirement Accounts (PRA) is a managed account solution customized to individual DC plan participants that leverages technology to integrate with recordkeepers and plan sponsor data.PRA offers financial advisors, retirement plan sponsors and plan participants an outcome-oriented solution that adapts over time and is designed to help get and keep participants on track to meet retirement income goals.
- Is personalized and easy. A customized portfolio for each plan participant using data automatically gathered from the recordkeeper.
- Targets retirement income. Strives to solve for a targeted retirement income goal, based on each participant's unique situation and adapts as their circumstances change.
- Leverages core plan investment options: Open architecture using the plan's core investment options as selected by the advisor.
Personalized Retirement Accounts explained
See how PRA creates customized investment portfolios designed to help defined contribution plan participants reach their specific retirement income goals. PRA meets the criteria for a qualified default investment alternative (QDIA).
How does PRA work?
Based on each participant’s unique information (as provided by the recordkeeper and plan sponsor).
Builds a customized portfolio
Uses asset allocation models, Russell Investments’ capital markets forecasts, and the investment options in the plan’s core menu, as selected and advised by the plan sponsor’s financial advisor.
Adjusts and manages
Automatically adjusts and manages the portfolio as the participant’s situation or the capital markets change.
Includes an innovative tool (the Personalized Retirement Planner) to help participants keep track of their progress toward their retirement income goal.
PRA calculates each participant’s retirement income goal and identifies an asset allocation that is appropriate to help the participant reach that goal.
Key stakeholders align to deliver Personalized Retirement Accounts
PRA brings together a team of experts working on plan participants’ behalf through a unique collaboration between the advisor, plan sponsor, recordkeeper and Russell Investments.
- Financial advisors are able to leverage their strength in selecting and monitoring the investment options that will fund PRA’s asset allocation advice from the plan’s core menu.
- Plan sponsors benefit through enhanced reporting to better understand the overall retirement health of their employees. Since the PRA system collects specific information about participants, PRA reports on critical participant sub-populations based on age, salary ranges and other key attributes. This can support targeted communications and plan design changes to help improve readiness for participants who maybe falling behind.
- Russell Investments serves as 3(38) investment fiduciary with respect to the asset allocation advice offered through PRA.
Personalized Retirement Planner
For plan participants who wish to create a more comprehensive financial picture, we offer the Personalized Retirement Planner as part of the PRA program. With the Planner, participants can:
- Consider advice for improving the outcome of their plan.
- Model and compare different savings rates and retirement dates and make changes to their plan if desired.
- Automatically account for retirement assets that are outside of the plan, as well as include other retirement income sources.
- Increase their contribution rate automatically and gradually over a timeframe that works for them.
We offer other solutions for retirement plans, designed to meet the needs of participants who prefer some personal involvement.
Hear from our experts on the issues our clients care about
June 24, 2020
The value of personalized retirement solutions in times of uncertainty
We believe that the personalized approach used with managed accounts can prevent diligent savers from being blindsided by market chaos.Blog post
February 13, 2020
The SECURE Act, explained
Mike Gavan | Chris Machesney
Here’s how the SECURE Act may impact your clients. Plan now for these conversations.Blog post
June 24, 2019
Evaluating managed account performance: Understanding the differences
We believe an outcome-oriented framework is critical to thoroughly evaluating QDIA solutions.
Meet the team
Would you like to learn more?
We can help you find ways to enhance your DC offerings, send you more information about Personalized Retirement Accounts, or provide a demonstration of the Personalized Retirement Planner.