« Back | Press release: September 9, 2013

Putnam Investments To Provide 401(K) Participants With Access To Financial Wellness Services To Help Plan and Prepare For Retirement

New Component to be Integrated into Firm's Award-Winning 401(k) Platform as Part of Overall Putnam Mission to Drive Awareness of Retirement Savings Needs and Allow Decisive Action

BOSTON, September 9, 2013 — The urgent need to save at adequate levels for retirement is well chronicled, yet how individuals accomplish this task can present a challenge. To help its client's 401(k) plan participants overcome this hurdle, Putnam Investments today announced that early next year, it will be providing access to personal financial wellness services, including important information and useful planning tools to help with holistic budgeting and saving, as well as expert wellness advice from independent Certified Financial Planners, provided by LearnVest.

Putnam has been working with the retirement marketplace in recent years to advance and improve the workplace savings experience — to help drive more successful retirement outcomes for 401(k) plans and participants — through an increasingly robust set of capabilities designed to better inform and enable individuals to take action toward their goals. Recognizing that many workers saving for retirement are impeded by their day-to-day personal finances, Putnam will soon be offering access to financial wellness services, which will be dynamically integrated into the overall participant experience within the firm's 401(k) offering.

"Achieving retirement success in today's world, which we define as the ability for an individual to replace current income in retirement, requires a new, more comprehensive approach," said Edmund F. Murphy III, Head of Defined Contribution, Putnam Investments. "Plan Sponsors and advisors have told us that many plan participants would like to save more, but feel they lack control of their finances or find it challenging to do so as they navigate expenses in paycheck-to-paycheck situations. Saving for retirement needs to be an ongoing priority that is considered not in a silo, but in concert with an individual's overall financial needs, goals, obligations — and ultimately, health."

"By having access to financial wellness services," Murphy added, "Putnam 401(k) plan participants will be able to examine their retirement goals within a broader context through the LearnVest comprehensive set of tools — and be able to seek assistance with financial planning elements such as aggregating accounts, budgeting, expense tracking and debt management. In an effort to more closely bridge individuals' retirement savings decisions with the broader management of their families' personal finances, participants will be reminded of the availability of these useful services at key junctures within the Putnam 401(k) experience, including when they indicate an intention to reduce deferrals or increase their retirement age."

Putnam's approach to the 401(k) marketplace has been to build an interactive user experience for plan participants that seeks to shift focus beyond current account balances and allocations, and toward estimated monthly income needs in retirement. In 2010, Putnam developed and launched the Lifetime Income experience, built around Putnam's Lifetime IncomeSM Analysis Tool (LIAT). LIAT seeks to create a qualitatively different way for participants to experience and interact with their retirement savings plans. Recently, Putnam launched its Health Cost Estimator to help plan participants estimate their potential future health-care costs in retirement.

"LearnVest is excited to bring its financial wellness solutions to the 401(k) marketplace in partnership with Putnam. LearnVest has proven its ability to get people across the country to make real progress on their money, from budgeting better to saving more for retirement," says LearnVest Founder and CEO, Alexa von Tobel. "There is a significant need for individuals to increase their retirement savings and that can only happen when individuals take a holistic view of their personal finances. LearnVest is proud to be working to help people become financially fit and retirement ready."

Putnam Lifetime Income Analysis Tool

The Putnam's Lifetime IncomeSM Analysis Tool was introduced in January 2010 as a new approach that changes the lens through which 401(k) plan participants view their current retirement savings activities, by placing much greater focus on future monthly income needs and shortfall planning. The online experience is designed to help participants estimate how much monthly income their current retirement savings may generate in retirement compared to what they may need, and then offer actionable next steps.

About Putnam Investments

Founded in 1937, Putnam Investments is a leading global money management firm with over 75 years of investment experience. The firm was recently named #1 out of 62 Mutual Fund Family by Lipper/Barron's based on the firm's 2012 performance across asset classes. At the end of July 2013, Putnam had $139 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Beijing, Amsterdam, Tokyo, Singapore and Sydney. For more information, visit putnam.com.

About LearnVest

LearnVest is an award-winning personal finance platform, which through its subsidiary, LearnVest Planning, provides high-quality, fee-based financial advisory services. LearnVest Planning, a registered investment adviser, is redefining the traditional financial planning market with a dynamic, technology-enabled service—the Action Program. The 7-Step Action Program gives clients nationwide access to unbiased financial advice, straight from Certified Financial PlannersTM. These financial experts offer dedicated support and custom-tailored Challenges to help clients make real progress on their money. For more information about LearnVest, please visit www.LearnVest.com.

IMPORTANT: The projections, or other information generated by the Lifetime Income Analysis Tool regarding the likelihood of various investment outcomes, are hypothetical in nature. They do not reflect actual investment results and are not guarantees of future results. The results may vary with each use and over time. The analyses present the likelihood of various investment outcomes if certain investment strategies or styles are undertaken, thereby serving as an additional resource to investors in the evaluation of the potential risks and returns of investment choices.

Each simulation takes into account the participant's current plan balance and investment mix, as well as his or her age, income, retirement date, contribution rate, likely future savings, and estimated Social Security benefit. The tool runs over 50 billion market simulations to provide an estimate of a monthly income likely to be generated at retirement. The Lifetime Income Analysis Tool is an interactive investment tool designed for Putnam 401(k) participants to illustrate the estimated impact of a participant's plan balances and projected savings on income in retirement. The tool takes into account both before-tax and after-tax accumulated balances and future regularly scheduled contributions for estimated projections. It cannot account for dramatic changes in a participant's personal situation, including unexpected expenses and other financial situations that may negatively affect one's estimated monthly income in retirement. You are advised to consider your other assets, income, investment options, investment time horizon, income tax bracket, and risk tolerance when planning for specific investment goals. It is recommended that you consult a financial advisor for more information. It is important to note that the results from this tool are estimates based on what you input today. The results are not a guarantee of actual outcomes and will change as your inputs change.

Health-care costs and projections are provided by HealthView Services, Inc., a third-party vendor. They provide broad, general estimates and information that may help you consider your retirement income needs by better understanding potential health-care costs. This estimate is provided for educational purposes only, and you should not rely on it as the primary basis for your medical, insurance, investment, financial, retirement, or tax planning decisions. Costs are estimated, hypothetical in nature, and not guaranteed. Your actual medical costs will likely vary (sometimes significantly) from the estimates. Putnam does not believe that HIPAA applies to the data obtained from plan participants using this new tool.

Putnam has partnered with LearnVest to provide access to a full range of budgeting and planning tools — including access to a LearnVest financial wellness expert. Fees may apply to certain LearnVest services. Use LearnVest to get a better handle on your day-to-day finances, and to get the help you need to make progress toward all your financial goals.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.

Putnam Investments Media Contacts:

Jon Goldstein — 617-760-1127 (office), 516-946-5598 (cell), [email protected]
Laura McNamara — 617-760-1108 (office), 617-850-2727 (cell), [email protected]

LearnVest Press Contact:

Dani Dalesandro, Sunshine Sachs — 212-691-2800, [email protected]

Putnam Retail Management