RETIREMENT INCOME GAP

As the American population ages, many future retirees are going to be financially unprepared and may have a “Retirement Income Gap” – a shortfall between the income their savings may provide and the income needed to maintain their current standard of living
throughout retirement.

In the past, retirees relied on Social Security and a company-funded pension plan. For retirees of the future, these sources of income may be insufficient or unavailable to sustain the lifestyles they want. In the worst case, the resulting Retirement Income Gap could leave retirees dependent upon others.

Employer-sponsored retirement plans are designed to close this gap. Their purpose is to help employees prepare for retirement and protect them from a declining standard of living. This can only happen if employees take action and start thinking about the so called “golden years” now! In order to adequately prepare for retirement, employees must develop a retirement income goal, make plan contributions and implement an investment strategy to meet their goal. Unfortunately, research into investing habits frequently reveals that these steps pose a challenge to many.

PLAN SPONSOR DILEMMA

Most plan sponsors are aware of the retirement funding challenge their participants face. Traditionally, plan sponsors offered enhanced communications, planning tools and education to participants. Knowing that these efforts may fall short, plan sponsors must offer more to participants.

The reality is that under the Employee Retirement Income Security Act (ERISA), plan sponsors have certain fiduciary obligations and may be personally liable to the full extent of their net worth should they be negligent in their plan administration.

Even more troubling are the predictions from legal and pension experts who caution that plan participants may look to plan sponsors for financial relief through legal channels if the participants fail to sufficiently fund their retirement.

WHY PRONVEST

ProNvest is an independent registered investment advisory firm that helps participants reach their retirement goals. We also assist plan sponsors in meeting the legal requirements of The Pension Protection Act (PPA) and ERISA.

ProNvest’s features simply overlay onto an existing retirement plan as a value added service, with no disruption to the existing plan. All participants have access to investment guidance and advice services at no cost to either the employee or the employer, with no account minimums.

Participants who elect to take advantage of ProNvest’s account management service pay a reasonable annual fee.

HELPING PLAN SPONSORS

By providing ProNvest’s comprehensive advice and management solution, plan sponsors are able to:

• Satisfy PPA and ERISA requirements as they relate tothe implementation of advice that

• is independent
• is computer model based
• is offered as a flat fee
• provides disclosures

• Provide a valuable employee benefit at no cost to the plan sponsor
• Provide participants with the assistance they need
• Help address fiduciary responsibility
• Help increase participation and contributions
• Access securely stored communications and planning results for future retrieval

HELPING PARTICIPANTS

ProNvest helps participants close the retirement income gap by improving their retirement outlook. By using ProNvest’s services, participants gain:
• Goal-based money management
• Actively managed accounts
• Lifetime services: pre- and post-retirement
• Quarterly statements and annual reminders
• Comfort in knowing they are working toward their retirement goals

Advice and account management are the primary services we offer each participant. Participants are first asked to complete the ProNvest Retirement Planner questionnaire. The Planner helps participants determine a retirement income goal and provides recommendations to help reach that goal. As each participant completes the Planner, the system will generate a customized portfolio
using Returns-based Attribution and Monte Carlo Simulation modeling techniques. Retirement counselors are available by phone to speak to participants at any point in the planning and investing process. On-site meetings are also available at a plan sponsor’s request.

After completing the planning process, ProNvest will apply fund specific management on behalf of a participant and continue to manage their account on an ongoing basis. These are lifetime services, available while participants are employed and into retirement. A participant has the option to take on the responsibility and risks associated with saving, planning and investing for their retirement.