T. Rowe Price launches personalized retirement manager in Baltimore, Sept 2024

T. Rowe Price has introduced the Personalized Retirement Manager (PRM), a groundbreaking service designed to enhance retirement planning by utilizing personal data to create tailored asset allocations. This innovative approach combines the firm's established target date asset allocation methodology with a high degree of personalization, allowing individuals to align their investments with specific savings goals and financial situations. Participants can further refine their allocations by providing additional information, such as household assets and retirement goals, leading to a more customized experience. The launch of PRM reflects a growing trend in the retirement savings landscape, where personalization is increasingly sought after by plan sponsors. A recent survey indicated that 14% of Defined Contribution plan sponsors currently offer dynamic Qualified Default Investment Alternatives (QDIAs) that transition participants to more personalized strategies as they approach retirement. Additionally, 51% of sponsors are interested in exploring such solutions, highlighting a significant shift towards integrating personalization into retirement planning. Wyatt Lee, head of Target Date Strategies at T. Rowe Price, emphasized the importance of leveraging technology and personal data to improve retirement outcomes. The PRM service is already being utilized as a QDIA by several recordkeeping clients, demonstrating its practical application and effectiveness for participants nearing retirement. Overall, the introduction of PRM signifies a pivotal moment in retirement planning, merging traditional target date solutions with the power of personalization. This development aims to empower participants, ensuring their investments are better aligned with their unique circumstances and long-term financial goals.