T. Rowe Price Group, Inc. · NASDAQ:TROW
T. Rowe Price — Investor Presentation (September 2025)
42 slides from T. Rowe Price's investor presentation, September 2025
Slide 1: Retirement Solutions
Retirement Solutions Eva Wu Solutions Strategist September 2025 FOR PROFESSIONAL CLIENTS ONLY. NOT FOR FURTHER DISTRIBUTION. T. R O W E P R I C E 1
Slide 2: Today’s Speaker
Today’s Speaker Eva Wu Solutions Strategist T. R O W E P R I C E 2
Slide 3: T. Rowe Price: A retirement leader
T. Rowe Price: A retirement leader As of 30 June 2025 2/3 #1 2.3m Total firm AUM that Largest active Retirement Plan are retirement- target date Services related manager in the participants across world1 8,000+ plans 20 years 20+ 2019 Average tenure of Years of T. Rowe Launched first clients above P
Slide 4: Retirement income advice process in review
Retirement income advice process in review Who? What? Client fact-finding Risk profiling #suitability #decumulation #products and services Periodic CRP #Cash flow modelling (CFM) Review #Capacity for loss (CFL) #Attitude to risk (ATR) Where? How? Control framework Income advice A Centralised Retirem
Slide 5: Retirement planning: Conundrums
Retirement planning: Conundrums T. R O W E P R I C E 5
Slide 6: Accumulation: Two-dimensional, return and risk
Accumulation: Two-dimensional, return and risk EFFICIENT FRONTIER A mix of equity, fixed income and cash Expected return 8% 7% Equity 6% 5% Fixed income 4% Cash 3% 2% 1% 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% Volatility For illustrative purposes only. T. R O W E P R I C E 6
Slide 7: Decumulation: Five-dimensional, 5D framework
Decumulation: Five-dimensional, 5D framework Longevity risk hedge “How many years will my retirement savings last?” “How high is the risk of my Unexpected “What will be the amount Payment money running out earlier balance level of my annual income?” than expected?” depletion “If a need arises, how m
Slide 8: Payment level: Changes with horizon, varies by risk level
Payment level Payment level: Changes with horizon, varies by risk level EXPECTED INCOME LEVEL Annual income from a £250,000 pension invested in a multi-asset portfolio that draws down over time Portfolio income (£) 50,000 4.5% expected portfolio return 5.5% expected portfolio return 6.5% expected po
Slide 9: Longevity risk: People are living longer
Longevity risk hedge Longevity risk: People are living longer LIFE EXPECTANCY AT BIRTH, SELECTED COUNTRIES Years 86 84.71 1983 2023 83.92 83.72 84 82.63 82.16 82 81.38 81.30 80 79.30 78 77.1 76.1 76.3 76 75.4 74.7 74.6 73.9 74.3 74 72 70 68 Australia Canada Germany Italy Japan Netherlands the UK the
Slide 10: Longevity risk hedge: The risk of outliving retirement savings
Longevity risk hedge Longevity risk hedge: The risk of outliving retirement savings THREE LEVELS OF SPENDING Starting balance £250,000. Annual withdrawals £14,400, £31,300 and £43,100 1, assuming growing at a cash deposit rate of 2.5% and retire from age 65 Savings (£000s) 300 300 £14,400 £31,300 £4
Slide 11: Longevity risk hedge: The risk of outliving retirement savings
Longevity risk hedge Longevity risk hedge: The risk of outliving retirement savings HISTORICAL ANNUITY RATES Monthly, single life unisex, level, no guarantee, age 65, for the period May 1995 through July 2025 The implied lump sum required Minimum Moderate Comfortable Annuity rate 10% for different l
Slide 12: Sequencing risk: With withdrawals, the order of return matters
Unexpected balance depletion Sequencing risk: With withdrawals, the order of return matters ANNUAL RETURNS, THEIR SEQUENCE AND WITHDRAWALS Simulated portfolio returns and balances over a 15-year retirement window. Starting balance £100,000 Annual return 20% Investor 1 Investor 2 10% 0% -10% -20% (£0
Slide 13: Sequencing risk: A dynamic withdrawal approach helps
Unexpected balance depletion Sequencing risk: A dynamic withdrawal approach helps SIMULATED PORTFOLIO BALANCES UNDER THREE WITHDRAWAL APPROACHES Simulated portfolio balances over a 15-year retirement window. Starting balance £500,000 Portfolio balance (£000s) 1,000 Cash buffer Bucketing T. Rowe Pric
Slide 14: Payment volatility: Annuity versus multi-asset portfolio
Payment volatility Payment volatility: Annuity versus multi-asset portfolio ANNUITY INCOME MULTI-ASSET PORTFOLIO INCOME An immediate lifetime annuity A multi-asset portfolio Portfolio income (£) Annuity income (£) 4,000 4,000 Annuity income Portfolio payment Total payment 3,500 Total income 3,500 Al
Slide 15: Balance liquidity: Annuity versus multi-asset portfolio
Balance liquidity Balance liquidity: Annuity versus multi-asset portfolio BALANCE OF ANNUITY BALANCE OF THE MULTI-ASSET PORTFOLIO An immediate lifetime annuity A multi-asset portfolio Annuity balance (£000s) Portfolio balance (£000s) 100 100 Annuity balance Portfolio balance 90 90 80 80 70 70 60 60
Slide 16: Retirement planning: Our solution
Retirement planning: Our solution T. R O W E P R I C E 16
Slide 17: 5D profiles: Annuity versus multi-asset portfolio
5D profiles: Annuity versus multi-asset portfolio ANNUITY – FIX MULTI-ASSET PORTFOLIO – FLEX Single life male, level, no guarantee, age 65 50% global equity, 50% global fixed income Longevity Longevity risk hedge risk hedge Unexpected Payment Unexpected Payment balance depletion level balance deplet
Slide 18: Hybrid solution, flex and fix: An immediate annuity and a portfolio
Hybrid solution, flex and fix: An immediate annuity and a portfolio 5D FRAMEWORK INCOME PROFILE An immediate annuity and a multi-asset portfolio An immediate annuity and a multi-asset portfolio Longevity Annuity income risk hedge 10% Annuity income Portfolio income Total income 9% 8% Unexpected Paym
Slide 19: Hybrid solution, flex then fix: Defer the annuity purchase
Hybrid solution, flex then fix: Defer the annuity purchase 5D FRAMEWORK INCOME PROFILE Deferring the annuity purchase and a multi-asset portfolio Deferring the annuity purchase and a multi-asset portfolio Longevity Annuity income risk hedge 10% Annuity income Portfolio income Total income 9% 8% Unex
Slide 20: Flex then fix: Margaret
Flex then fix: Margaret Income drawdown, with no annuity top-up (zero) Income (£) Balance (£) Annuity Income Fund Income Fund Balance Portfolio Balance (no top-up) Total Income (no top-up) 100,000 1,200,000 Margaret 90,000 65 years old 1,000,000 80,000 Health: Good 70,000 800,000 Income need: £60,00
Slide 21: Conclusion
Conclusion Who? What? Client fact-finding Risk profiling # A holistic framework CRP # Hybrid beats extremes Periodic Review # Personalised solution Where? How? Control framework Income advice For illustrative purposes only. Sources: Analysis by T. Rowe Price and the Financial Conduct Authority. T. R
Slide 22: T. Rowe Price Retire with Confidence | Q&A
O&A T. ROWE PRICE RETIRE WITH CONFIDENCE™ | 22
Slide 23: Please share your feedback
Please share your feedback For every survey completed, £10 will go to Ocean Generation Charity Scan QR code T. R O W E P R I C E 23
Slide 24: Appendix
T. ROWE PRICE RETIRE WITH CONFIDENCE™ | 24
Slide 25: Accumulation: Inflation risk – maintaining purchasing power
Accumulation: Inflation risk – maintaining purchasing power THE REAL VALUE OF £100 AND £100 INVESTED IN SELECT ASSET CLASSES Monthly, for the period February 1990 through July 2025 Real value of £100 700 700 Real value £100 Equity Bonds Cash 600 600 500 500 400 400 300 300 200 200 100 100 0 0 1990 1
Slide 26: Accumulation: Investment risk – diversification can mitigate risks
Accumulation: Investment risk – diversification can mitigate risks ROLLING 5-YEAR ANNUALISED TOTAL RETURNS Monthly, for the period February 1990 through July 2025 Annualised return 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% Equity 5-year rolling Balanced 5-year rolling -10% -10% 1995 1997 1999 2001
Slide 27: Payment level: Retirement income gap
Payment level Payment level: Retirement income gap UK RETIREMENT LIVING STANDARDS GROSS PENSION REPLACEMENT RATE1 Italy £59,000 Comfortable £43,100 Germany OECD £43,100 Moderate £31,300 United Kingdom United States £22,400 Minimum Couple (p.a.) £14,400 Single (p.a.) Japan Mandatory public Default/ma
Slide 28: Payment level: Changes with age, varies by annuity type
Payment level Payment level: Changes with age, varies by annuity type BEST ANNUITY RATES Annual income from a £100,000 pension used to buy a lifetime annuity Annuity income 10,000 Single life, level, no guarantee Single life, level, 5-year guarantee 9,000 Single life, 3% escalation, 5-year guarantee
Slide 29: Longevity risk hedge: Savings are not
Longevity risk hedge Longevity risk hedge: Savings are not AVERAGE UK PENSION POT BY AGE RANGE Average pension savings for men and women by age range Men in their 20s £3,700 Women in their 20s £2,000 Men in their 30s £10,300 Women in their 30s £7,500 Men in their 40s £36,000 Women in their 40s £26,5
Slide 30: Unexpected balance depletion: Multi-asset portfolio
Unexpected balance depletion Unexpected balance depletion: Multi-asset portfolio MULTI-ASSET PORTFOLIO Monthly, for the period January 2000 through June 2025. Starting balance £100,000 Portfolio balance (£000s) 450 Drawdowns MSCI ACWI 50/50 portfolio 450 400 January 2003 -48.5% -18.0% 400 February 2
Slide 31: Payment volatility: How do retirees spend
Payment volatility Payment volatility: How do retirees spend TOTAL SPENDING PATTERN IN RETIREMENT Inflation-adjusted total household spending decomposition after age 65 Household spending (£000s) 60 60 Total spending Non-discretionary spending 50 Discretionary spending 50 40 40 30 30 20 20 10 10 0 0
Slide 32: Payment volatility: How do retirees spend
Payment volatility Payment volatility: How do retirees spend MOVING BEYOND AVERAGE SPENDING Fluctuations of per capita household expenses in retirement, annual % change over a two-year period Annual % change over two years 25% 25th percentile 50th percentile 75th percentile 20% 15% 10% 5% 0% -5% -10
Slide 33: Flex and fix, flex then fix: Case studies
Flex and fix, flex then fix: Case studies ▪ At age 65, Paul, John, Margaret, and Patricia retired ▪ Paul chose ‘flex and fix’ to lock in a guaranteed stream of income ▪ John, Margaret and Patricia chose ‘flex then fix’ to defer the annuity decision and keep the flexibility ▪ Paul is the healthiest.
Slide 34: Flex and fix: Paul at age 65
Flex and fix: Paul at age 65 Flex and fix Income (£) Balance (£) Annuity Income Fund Income Fund Balance Portfolio Balance Total Income 70,000 1,200,000 Paul 65 years old 60,000 1,000,000 Health: Good 50,000 800,000 Income need: Maintain current lifestyle 40,000 Bequest need: High 600,000 30,000 Bal
Slide 35: Flex then fix: John at age 80
Flex then fix: John at age 80 Income drawdown (conservative to aggressive), no annuitisation Income (£) Balance (£) Fund Income Annuity Hedging Balance Fund Balance Total Income (Aggressive) 100,000 1,200,000 Portfolio Balance (Aggressive) John 90,000 Total Income (Conservative) Portfolio Balance (C
Slide 36: Flex then fix: Margaret at age 80
Flex then fix: Margaret at age 80 Income drawdown, with no annuity top-up (zero) Income (£) Balance (£) Annuity Income Fund Income Fund Balance Portfolio Balance (no top-up) Total Income (no top-up) 100,000 1,200,000 Margaret 90,000 80 years old 1,000,000 80,000 Health: Good 70,000 800,000 Income ne
Slide 37: Flex then fix: Patricia at age 80
Flex then fix: Patricia at age 80 Income drawdown, with annuity top-up (conservative to aggressive) Income (£) Balance (£) Annuity Income Annuity Hedging Balance Fund Income Fund Balance Total Income (50% top-up) Portfolio Balance (50% top-up) Total Income (10% top-up) Portfolio Balance (10% top-up)
Slide 38: Flex then fix: Annuity-price hedging portfolio
Flex then fix: Annuity-price hedging portfolio HISTORICAL ANNUITY RATES AND ANNUITY-HEDGING PORTFOLIO Monthly, single life male, level, no guarantee, age 80, for the period May 1995 through July 2025 Annuity rate (%) 15% 15% 13% 13% 11% 11% 9% 9% 7% 7% Annuity rate 5% Effective minimal rate after 1-
Slide 39: Flex then fix: Annuity-price hedging portfolio
Flex then fix: Annuity-price hedging portfolio When the interest rate fell over the period shown Annuity rate Duration-managed Annuity income 1 Gilt portfolio Annuity income 2 (for an 80-year-old) portfolio balance (£) (£ per year) balance (£) (£ per year) 100,000 * 10.5% = 100,000 * 10.5% = Start O
Slide 40: Multi-asset income portfolio
Multi-asset income portfolio As of 31 December 2024 Allocation Allocation Component (%) Component (%) TRP Global Structured Research Equity 15.0% TRP Global Structured Research Equity 15.0% ® ® SPDR S&P Global Dividend Aristocrats ETF 2.5% FTSE EPRA/NAREIT Developed tracker 7.5% FTSE EPRA/NAREIT Dev
Slide 41: Important information
Important information This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decis
Slide 42: Thank you
D4 T.RowePrice Thank you
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