Can Knowledge Empower Women to Save More for Retirement? Discussion on: Can Knowledge Empower Women to Save More for Retirement? Research by Drew M. Anderson and J. Michael Collins, University of Wisconsin-Madison Judy Dougherty Prudential Financial Head of Strategic Initiatives

The Retirement Income Gender Gap is Real Women are: Living longer More likely to be single later in life Time-starved Not making retirement planning a priority Carrying more debt Earning less Job Earnings Gap Social Security Gap Retirement Savings Gap Retirement Income Gap

Education May Help Overcome Behavioral Challenges “I might live how long?” Trouble imagining a long life Procrastination Being overly optimistic Following the pack Instant gratification “I’ll do it later.” “It won’t happen to me” “I just can’t resist” “I want it now!”

EMPOWER Experiment: Role of Workplace Financial Education Programs Robust research design: large sample size, accuracy of data, several control groups Key features tested Workplace financial education (e.g., multi-media, constant drip) Peer-to-peer conversation (engagement is key) Encouraging results Effective, especially at getting women to participate Workplace is conducive for education Low cost way to improve outcomes Potential refinements to the research Extend to private sector (fewer pensions, less job stability) Drill down into segments of women (for targeting purposes) Explore the impact of education on contribution levels Explore how other household finances may be affected (suggested by the researchers) Further explore the impact of peer-to-peer conversations

How Employers Can Help Employees Achieve Secure Retirements DC Plan Design Data Analytics Automatic enrollment and escalation Target date funds as default investment Efficient structuring of matching contributions Guaranteed lifetime income Understand needs of employee base Targeted communications to segments Optimize budget for employee benefits Financial Wellness Programs Tools and Calculators Manage day-to-day finances Achieve important financial goals Protect against key financial risks Retirement calculators Planning and budgeting tools Online education

Secure Retirements are a Win-Win for Employees and Employers Alike Reduced financial stress More control over retirement age More financial freedom Increased productivity Increased ability to retain and recruit talent Better workforce management and cost savings

For more information, visit research.prudential.com Conclusion The retirement income gender gap is real Financial education can help reduce the gap, as indicated in the EMPOWER research Education is a relatively low-cost way to improve retirement outcomes Results are encouraging, especially in getting employees to participate Potential refinements to the research should be considered (e.g., extend to private sector) However, more needs to be done. Employers can help in two fundamental ways Provide appropriate DC plan defaults for employees Adopt a holistic financial wellness program which includes educating employees to help them make the right financial decisions Secure retirements are good for all For more information, visit research.prudential.com The Prudential Insurance Company of America Newark, NJ 0307937-00001-00