T. ROWE PRICE LAUNCHES INNOVATIVE FRAMEWORK TO AID EVALUATION OF RETIREMENT INCOME SOLUTIONS

Core Insights - T. Rowe Price has developed a five-dimensional (5-D) framework to assist defined contribution (DC) plan sponsors in evaluating retirement income products, addressing the lack of a common method in the industry [1][5][6] - The framework aims to provide a standard language for plan sponsors, advisors, and consultants to understand tradeoffs in retirement income solutions tailored to participant objectives [2][7] Group 1: Framework Details - The 5-D framework includes five key dimensions: longevity risk hedge, level of payments, volatility of payments, liquidity of balance, and unexpected balance depletion [2][6] - This framework allows for quantifiable metrics to assess how well various retirement income solutions can help participants achieve their specific objectives [6][7] Group 2: Industry Context - T. Rowe Price's research indicates that 71% of DC plan sponsors recognize the aging demographics of their participants, with 69% expressing a desire for more participants to retain their DC balances post-retirement [5][9] - The firm manages USD 1.54 trillion in assets as of May 31, 2024, and is recognized for its expertise in retirement solutions and active management across various investment strategies [4][8]