Innovative Retirement Technology Tools to Engage Participants and Increase Retirement Savings

Ketul ThakerNational Director, Consultant Relations

MassMutual

Audience Question 1:

If you’ve bought/leased/rented a new car in the past three years, what is your reaction to the new technology in the car?1. I love it2. I can’t figure it out3. Uber/Lyft anyone?4. My chauffer uses it more than I do

Audience Question 2:How do you feel about the tools and technology available in your Retirement Plan?

1. I love it and use it regularly2. I can’t figure it out3. Um…new tools and technology?4. I just wish someone would do it for me

New Cars and Retirement

Parallels in Technology

Michael RosenbergSVP, Head of Retirement Investment Solutions

First Eagle Investment Management

Retirement is NOT a “Set-it and Forget-it” Journey

• ENGAGEMENT is needed to optimize retirement outcomes with best practice insights shared at the right time and in the right “language”

• Technology can be ENGAGING

• Technology will not replace the need for human interaction but could in fact, enhance the relationship between participant, plan and advisor

Developing Technology Tools

• There is enough experience and evidence of what does not work

• People are tech dependent, but not tech savvy, therefore a tool must be:– Easy to Use– Work Every Time

• Technology tools should help to:– Change the Retirement Language and Make the User Feel Empowered (i.e. Not Dumb)– Create Incentives for Returning to the Site, Reaching Milestones or Taking Action– Build Your Brand….Not Sell Products

• Set realistic expectations for measuring success

First Eagle and BC-Center for Retirement Research

• Partnering to build technology tools that bring an Unbiased and Academic approach to:

– Encourage Active Engagement and Re-Engagement– Set Realistic Retirement Dates – Model a Future Retirement Paycheck

• Use non-retirement approaches to demonstrate the opportunities for success and utilization

• Allow BC–CRR to capture data, gain insights into what works, build new assumptions and impact retirement policies

Drew CarringtonSVP, Head of Institutional DC

Franklin Templeton Investments

1. AARP Public Policy Institute, “Social Security: Who's Counting on It?” August 2015. http://www.aarp.org/content/dam/aarp/ppi/2015/whos-counting-on-social-security-FS.pdf (p.2)2. Consumer Financial Protection Bureau, “Issue Brief: Social Security Claiming Age and Retirement Security.” http://files.consumerfinance.gov/f/201511_cfpb_issue-brief-social-security-claiming-age-and-retirement-security.pdf (p.13)3. The 2018 Franklin Templeton Retirement Income Strategies and Expectations (RISE) survey.

54% of retirees began Social Security before Full Retirement Age (FRA).32018 RISE Survey

For most older Americans, Social Security is the only retirement income source that is guaranteed for life and adjusted to keep pace with inflation.”1

AARP Public Policy Institute

“ The monetary value of these protections is reduced, however, when a consumer receives benefits early.”2

Consumer Financial Protection Bureau

“

Social Security Is a Unique Retirement Income “Asset”

Most Important…and Least Understood

“Financial Planners estimate that percentage is closer to 1%.”3

“About 21% of people ages 65 and older live in families that depend on Social Security for 90% or more of their family income.”1

“Among Americans age 80 and older, Social Security accounts for 70% or more of their income.”2

“Only 9% of Americans age 45–64 think they are “very knowledgeable” about how their Social Security benefit is calculated.”3

Americans need help in deciding when to file for this critically important retirement income asset!

“77% of Americans say maximizing their benefit is very important.”3

“Only 1/3 of consumers know that delaying until 70 could result in their maximum benefit amount.”4

1. AARP article at p. 1.2. CFPB Brief at p. 4.3. AARP, “FPA, AARP Joint Research Reveals Enormous Social Security Knowledge Gap” September 2015. http://www.aarp.org/about-aarp/press-center/info-09-2015/fpa-aarp-joint-research-reveals-social-security-knowledge-gap.html4. Financial Planning Association & AARP, “Social Security Planning in 2015 & Beyond: Perspectives of Future Beneficiaries and Financial Planners.” http://www.aarp.org/content/dam/aarp/research/surveys_statistics/econ/2015/fpa-soc-sec-and-beyond-res-econ-secured.pdf (p.12)

Timing is Everything

Earliest age to claim own or spousal (reduced) benefit

Eligible for Medicare

• 100% of own benefit (PIA—Primary Insurance Amount)

• 50% spousal benefit• 100% widow’s benefit• Only earn Delayed Retirement Credits

(DRCs) on own benefit• Can file-and-restrict if

age 62 as of 1/1/163

• Can elect to suspend benefit but there are consequences

DRCs stop accruing

Except for those who were 62 or older on 1/1/16, if you are eligible for more than one type of benefit, you receive WHICHEVER IS HIGHER.4

Earliest age to receive (reduced) widow(er) or surviving divorced spouse benefit

601 62 65 66 FRA2 70

1. 50, if disabled.2. Full Retirement Age (FRA) is at least 66 for individuals born in 1943 through 1959; 67 if born 1960 or later.3. Bipartisan Budget Act of 2015.4. “Deemed filing” rule took effect 4/30/16. Source: www.ssa.gov.

Financial wellness tools can help participants with financial challenges, but most of these tools are geared toward younger participants.

A Retirement Tier extends this concept to tools that are useful for a group of participants nearing or at the end of their careers.

Social Security Optimizer

Expense Assessment

Resource Center

54% of people began receiving Social Security benefits before full retirement age.

Of those people, 50% said they did so simply because they were eligible.1

Help participants understand how their decision on when to file for

social security can impact their

retirement income

Help participants understand the level of income

they may need in retirement

Offer a center that includes resources

about specific topics such as reverse mortgages and

Medicare to keep retirees informed

TOOLS AND COACHING

1. Source: Franklin Templeton Retirement Strategies and Expectations (RISE) Survey, 2018

Tools and Coaching

We Did This For Our Own PlanFranklin Templeton hosted a live webinar for employees of our plan to educate them on Social Security and things to consider to optimize their claiming strategy

– There were 4,000 total active employees– 1,400 of those employees were over 50+– 175 employees attended the webinar, which doesn’t seem like a lot…

…but it was 10 -15% of the 50+ population

The Social Security Optimizer is necessary, but not sufficient for success. We believe that people also want to speak with a live person and have their questions answered

Franklin Templeton Social Security Resources

Social Security Optimizer www.franklintempleton.com/optimizer

Social Security Options for Spouses, Widows and Ex-Spouses

Are You Minimizing the Value of Your Social Security Benefits?

Social Security Questions and Answers

Available Resources

Re-Think Social Security Infographic

Franklin Templeton Distributors, Inc.One Franklin ParkwaySan Mateo, CA 94403-1906franklintempleton.com

This material is general in nature and is provided for informational and educational purposes only. Nothing herein shall be construed to constitute investment, legal, accounting or tax advice, or an investment recommendation within the meaning of federal, state or local law, or used as the primary or final determinant of the best strategy on how and when to claim Social Security benefits. Franklin Templeton does not provide legal or tax advice-please consult with a qualified professional for these types of advice.

Any views or opinions expressed in this material are those of the presenter and may not reflect the views of Franklin Templeton investments (“FTI”) as a whole. FTI does not endorse or recommend any views or opinions expressed in this material.

Information is current as of the date of this materials and obtained from sources deemed reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. Because market and economic conditions are subject to rapid change, the information, analysis and opinions provided in this material may change without notice and FTI disclaims any responsibility for updating this material. FTI accepts no liability whatsoever for any direct or indirect consequential loss arising from the use of, or any tax position taken in reliance on, any information, opinion or estimate herein.

This material should not be relied upon as a basis for making an investment decision or used as the primary or final determinant of the best strategy on how and when to claim Social Security benefits. It does not provide a complete analysis of every material fact regarding the Social Security program. Helpful information can be found at the Social Security Administration’s {SSA's) website: http://www.ssa.gov. FTI accepts no responsibility for content on the SSA's website or other third-party websites. The hypothetical scenarios are estimates based on certain simple assumption, and are designed to provide only a general understanding of the impact of different Social Security benefits claiming strategies. Social Security benefits claiming decisions can be complex and depend on various personal factors other than a participant’s age or retirement date, including, but not limited to, personal circumstances, needs and individual goals; legal and financial consideration; and tax laws, consequences and status, some or all of which can change frequently. We strongly advise that plan participants consult with the appropriate financial, legal, accounting, tax or other applicable advisors about their specific circumstances and individual goals.

All financial decisions, strategies, and investments involve risks, including possible loss of principal, and may not achieve the desired results.

Tina SchackmanVice President, Strategic Relationships

Prudential Retirement

Retirement Technology

• Digital tools to gather data

• Personalized experience

• Predictive analysis

Drive Engagement

Alexa, what’s my Prudential Retirement account balance?

Alexa, what’s my Prudential Retirement account balance?