SPRINGFIELD, Mass., June 19, 2013 /PRNewswire/ -- MassMutual's Retirement Services Division recently participated in the RAND Behavioral Finance (BeFi) Forum. The annual public policy roundtable, hosted in Washington, D.C., gathers a collective of academic, financial and government leaders charged with fostering cutting-edge behavioral finance research and innovation to serve the best interests of the public.
The forum, held on May 31, was held to share ideas and research on how behavioral finance principles are helping consumers better focus on and prepare for retirement. Hugh O'Toole, senior vice president and head of sales and client management for MassMutual's Retirement Services Division, represented MassMutual as the only recordkeeper to present at the forum. O'Toole discussed how MassMutual is successfully using behavioral finance principles to help retirement plan participants achieve better outcomes from workplace savings vehicles such as 401(k) plans.
Behavioral finance ("BeFi") focuses on the role of psychology in investment decisions and financial market fluctuations. "MassMutual uses behavioral finance principles to help motivate retirement plan participants to act in their own best interests," says O'Toole. His presentation illustrated how MassMutual uses BeFi and its industry-leading data capabilities to positively impact – and measure – retirement outcomes for American savers.
Over the past 18 months, MassMutual has worked with approximately 500 retirement plan sponsors to benchmark and help improve the chances for retirement success for participants. MassMutual's approach uses plan design and BeFi principles to more successfully engage participants in planning for their retirement. "MassMutual's approach has produced some astounding results," says O'Toole. "Using proprietary data and tools, MassMutual was able to measure specific improvements in the percentage of participants on track to retire with a target level of retirement income. In the target group, 64% of participants were on track to retire with sufficient replacement income after implementing changes suggested by MassMutual's unique approach, compared to only 44% prior to making the changes, a 45% increase overall." The changes included using BeFi plan design techniques and innovative ways to engage participants based on BeFi research and principles.
"The presentation and ensuing dialogue about MassMutual's approach and capabilities generated significant interest during the panel discussion," says Kris Gates, vice president of participant experience for MassMutual's Retirement Services Division. "After the panel, several parties, including the Consumer Financial Protection Bureau, expressed interest in learning more about how MassMutual uses BeFi methods," added Gates.
For more information about MassMutual's Retirement Services, please contact your retirement plan professional or call MassMutual at 1-866-444-2601. http://www.massmutual.com/retire
Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders consistently since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurance, disability income insurance, long term care insurance, retirement/401(k) plan services, and annuities. In addition, the company's strong and growing network of financial professionals helps clients make good financial decisions for the long term.
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, LLC, Member FINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.
MassMutual's Retirement Services Division has been serving retirement plans for more than 65 years. It offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. It serves approximately 3 million participants.
For more information, visit www.massmutual.com or find MassMutual on Facebook, Twitter, LinkedIn, YouTube and Google+. For information regarding MassMutual's Retirement Services Division, you may also visit massmutual.com/retire or find us on Facebook.com/RetireSmart and YouTube.com/RetireSmart.
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