08-10-17 PlanSponsor
Providers, call centers strive to educate against hardship withdrawals
It's mid-August--the time of year when participants most often begin taking hardship withdrawals from their defined contribution plans, often to help defray the cost of a child's tuition. Sue Unvarsky, COO of Full Service Solutions at Prudential Retirement, says among the biggest downsides of taking a hardship withdrawal is that it diminishes participants' ability to make the most out of compounding earnings. And participants often find it difficult to to put the amount withdrawn back into their plans. A $50,000 hardship withdrawal could lead to a reduction in up to $100,000 in retirement savings over 12 years (assuming 6 percent returns), Unvarsky said. (more)

07-22-17 Investment News
Retirement planning: Women average longer life spans and lower savings that require creative planning strategies
While both men and women encounter challenges on the road to retirement, women face more obstacles and often follow a circuitous path. Women's average earnings remain about 21% below those of their male counterparts. Lower lifetime earnings translate into reduced Social Security benefits and smaller retirement account balances. Factor in time off for caregiving duties and the result is that women tend to have about 42% less income in retirement then men, according to a new report from Prudential Retirement. (more)

07-19-17 Women Executives
C-Suites Insight: David Hunt
PGIM President and CEO David Hunt recently discussed the need to correctly understand the ‘active-passive’ debate in a recent interview with Ellen Kinlin, CEO of the Kinlin Company, for her Women’s Executives C-Suite Insights blog. Hunt said, “Our active strategies are designed to work in an investor’s portfolio in such a way that they complement a selection of more easily accessible beta, which we believe also plays a role in many investors’ portfolios. In other words, this is a question of how alpha and beta should work together — and not a question of one or the other.” Hunt also discussed the role of alternatives in a portfolio, along with the need for increased diversity within the investment management industry. (more)

07-18-17 Bloomberg BNA
Proxy access-tool for a unique fight: Prudential Financial's Foran

Prudential Financial adopted proxy access in March 2015--without shareholder prodding--well before it became common in large public companies, setting an industry standard for best practices. Today, 60 percent of S&P 500 Index firms have adopted or are adopting bylaws supporting the process. In a Q&A with BNA, Prudential Chief Governance Officer Margaret Foran talked about other trends, including diversity and sustainability, just as the company released its most recent sustainability report. “It goes back to our roots,” she said. “We were founded on the belief that financial security should be within the reach of everyone. Our sustainability efforts create long-term value so that we can continue to achieve this purpose and deliver on our promises, as we have for the last 140 years.” (more)