Day One IncomeFlex Target Funds

Prudential Day One IncomeFlex Target Funds – Helping Americans Plan For Retirement with Guaranteed Lifetime Income

Day One IncomeFlex Target Funds were designed to help meet your income needs by leveraging Prudential’s risk management heritage and longevity focus to create the only target date product that is specifically engineered to be delivered with Prudential IncomeFlex Target, an in-plan guaranteed income option.

The Day One IncomeFlex Target Funds are managed to specific target dates and are offered in five-year intervals through the year 2060. Each fund has a target date and is designed to be used by investors that plan to retire in or near that date. For those who are already retired or seek current income, there is the Prudential Day One IncomeFlex Target Balanced Fund, which has the highest fixed-income exposure and is the most conservative of the Day One IncomeFlex Target Funds.

How The Income Guarantees Work

The income guarantee helps you accumulate assets and convert them into guaranteed lifetime income by tracking two key values:

Market Value

Your Market Value is a daily value that is not guaranteed and fluctuates based on fund performance. If permitted by the terms of your retirement plan, the Market Value can be passed on to your beneficiaries as a death benefit.

Income Base

Your Income Base is used to calculate guaranteed values and is set when your guarantee is activated. Like Market Value, your Income Base also increases with contributions. In addition, on each birthday, your Income Base increases to refl ect any gains from fund performance. If declining markets result in negative performance, the Income Base is protected.

On the day you decide to Lock-In your guaranteed benefit, your Market Value and Income Base are compared (both as of the previous business day). If the Market Value is higher, the Income Base automatically adjusts upwards to match. Your Income Base is used to determine your lifetime annual withdrawal amount. Prudential Retirement guarantees that you can withdraw this amount each year for the rest of your life. Unlike your Market Value, which is available for withdrawals permitted by your plan, the amount reflected as your Income Base is never available as a withdrawal.

Even if either declining market performance or your annual guaranteed withdrawals reduce your Market Value to zero dollars, Prudential Retirement will continue to pay your lifetime annual withdrawal amount for as long as you live (and your spouse, if elected).

Guarantees are based on the claims-paying ability of the Prudential Retirement Insurance and Annuity Company (PRIAC), and are subject to certain limitations, terms and conditions.

Withdrawals or transfers (other than transfers between IncomeFlex Target Funds) proportionately reduce guaranteed values prior to Locking-In. After Lock-In, withdrawals in excess of the Lifetime Annual Withdrawal Amount will reduce future guaranteed withdrawals proportionately and may even eliminate them entirely.

Market Gains with Downside Income Protection and Guaranteed Income For Life

Income Base
Market Value
Guaranteed Lifetime Income
participant at initial level

Initally, a participant's Market Value amd Income Base are equal. Moving forward, both increase with contributions nad decrease with withdrawls.

on participant's birthday

On a participant's birthday, the Market Value and Income Base are compared. If Market Value has decreased, the Income Base remains unchanged. If Market Value has increased, the Income Base is adjusted to match.

income base in up market

A participant's Income Base may rise in up markets, but it will never decline in response to market volatility.

income base after locks in

Although not shown in this exhibit, after “Lock In,” if Market Value exceeds the Income Base (as determined on the participant’s birthday), the annual income amount is adjusted upward.

income for lifetime

Once a participant “Locks In,” the participant’s lifetime annual withdrawal amount is guaranteed for as long as they live, regardless of market volatility.*

The hypothetical example above is for illustration purposes only. It does not reflect an actual experience with the product, an actual account value or the performance of any investment rate of return.

* Withdrawals in excess of the lifetime annual withdrawal amount will reduce further guaranteed withdrawals proportionately and may even eliminate them.


The target date is the approximate date when investors plan to retire and may begin withdrawing their money. The asset allocation of the target date funds will become more conservative until the date which is ten years prior to the target date by lessening the equity exposure and increasing the exposure in fixed income investments. The principal value of an investment in a target date fund is not guaranteed at any time, including the target date. There is no guarantee that the fund will provide adequate retirement income.

A target-date fund should not be selected solely based on age or retirement date. Before investing, participants should carefully consider the fund's investment objectives, risks, charges and expenses, as well as their age, anticipated retirement date, risk tolerance, other investments owned, and planned withdrawals.

The stated asset allocation may be subject to change. It is possible to lose money in a target date fund, including losses near and following retirement. Investments in the Funds are not deposits or obligations of any bank and are not insured or guaranteed by any governmental agency or instrumentality.

Experience the Day One Journey

Couples pull in an average of two-and-a-half times more income than individuals. See how major life events like getting married can influence how you save for retirement.

U.S. Census Bureau, Current Population Survey, 2011