PensionPlus and Capital Group announced a partnership Monday aimed at launching a lifelong personalized paycheck service for retirees. The companies say the program will complement the Capital Group and American Funds target-date retirement series and will be offered to select retirement plan participants.
Capital Group, home of American Funds, manages more than $2.3 trillion in equity and fixed-income assets for individuals and institutional investors worldwide. The global asset manager has been active on the partnership front this summer. Last month, Capital Group said it was extending its partnership with Financial Finesse to offer advisors access to an extended financial wellness coaching benefit to offer their retirement plan sponsor clients.
PensionPlus, which was co-founded in 2021 by behavioral economist Shlomo Benartzi, offers solutions that create personalized retirement income plans, helping users stay on track with spending and saving through “digital nudges.”
"As an established retirement income investment manager, implementing PensionPlus through this pilot aligns to our long-term goal of expanding coverage of workplace retirement plans and delivering solutions to help create better participant outcomes," Brendan Mahoney, head of institutional retirement strategic growth at Capital Group, said in a statement.
Benartzi further explained the service, saying that within approximately 10n minutes, participants are able to create a highly customized and sustainable retirement paycheck that reflects their needs, goals and preferences.
“We're not a once and done calculator,” Benartzi added. “After the retiree begins receiving their paycheck, we continually monitor their plan, adjusting their paycheck for inflation and nudging them to stay on track. Our simple goal is to give retirees the peace of mind they deserve with a paycheck they can count on."
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