Putnam Investments is launching a suite of income-oriented funds designed for advisors working with retirees during the drawdown phase of their investment cycle.

According to the firm, 75 million "baby boomers" begin to turn age 65 this year – at a pace of roughly 7,000 a day, creating huge demand for retirement planning.

The new fund range is designed to work with advisors developing strategies for monthly income flows, at varying levels of risk tolerance. There are three options with varying risk/return targets, all of which integrate absolute return funds.

Managing the funds are Jeffrey Knight, the firm’s head of global asset allocation, and Robert Kea and Robert Schoen.

The Putnam Retirement Income Fund Lifestyle 1 Fund is the most conservative option, and was previously called the Putnam RetirementReady Maturity Fund. It comprises a combination of the Putnam Absolute Return 100, 300 and 500 funds, the Putnam Asset Allocation: Conservative Portfolio, and the Putnam Money Market Fund.

The Lifestyle 2 option is a new “moderate retirement income portfolio”, based on the Putnam Absolute Return 100, 300, 500 and 700 funds, as well as domestic and international equity securities, and convertible and fixed income securities.

The Lifestyle 3 option is the most aggressive portfolio, and was formerly the Putnam Income Strategies Fund. It includes a combination of the Putnam Absolute Return 700 Fund, domestic and international equity securities, convertibles, and fixed income securities.

The range is intended to complement Putnam’s RetirementReady suite of funds, which focus on investors’ savings phase.

The launch is accompanied by a new planning tool which the firm says helps advisors and clients create income strategies from their retirement savings.

Putnam has around $125 billion in assets under management, including mutual fund assets of $69 billion and institutional assets of $56 billion. The firm's offices are in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore and Sydney.