The Prudential Day One® Target Date Funds Glidepath

One fund for every stage of your life.

Taking you to—and through—retirement.

What if one fund could take you from the first day of your career all the way to–and even through–retirement? With the Prudential Day One Target Date Funds, it can. That's because each Prudential Day One Fund follows a three-stage glidepath that is designed to follow you through each major stage of your life, from Accumulation to Preservation and Inflation Protection. They all share one overarching goal: helping you save and grow your money so you can retire with confidence. And since each Prudential Day One Fund is composed of a diversified mix of investments, it may be the only fund you need.

Let’s take a look at how the three-stage glidepath works.

For illustrative purposes only. Not representative of the funds' actual glidepath.

Accumulation Stage

Earlier in your working years, the greatest risk to your retirement savings may be that you are not taking enough risk. During the Accumulation stage, the Day One Funds have a higher exposure to equities and non-traditional investments that provide a greater potential for growth.

Preservation Stage

In the 10 years leading up to the target date and through the first 10 years following the target date objectives shift from growing assets to protecting retirement savings from potential market losses. During the Preservation stage, the Day One Funds reduce exposure to equities and shift into more conservative, less volatile assets to help provide additional protection against equity market declines.

Inflation Protection Stage

With a long retirement ahead, making sure your savings can keep pace with the rising costs of healthcare, housing, food and other necessities is very important. To help protect the purchasing power of your savings during this stage, the Day One Funds provide higher exposure to asset classes that historically have performed well during high inflationary periods.

As shown in the chart above, each Day One Fund’s asset allocation follows a glidepath that becomes more conservative as the applicable target date approaches by reducing exposure to equity investments and increasing exposure to fixed income investments. The glidepath continues to adjust allocations in this manner for approximately 10 years past the target date, at which point the asset allocation of each target-date fund will be similar to that of the Day One Income Fund, which maintains a static asset allocation. The glidepath assumes retirement at approximately age 65 and contributions beginning at approximately age 18.

Each Day One Fund’s underlying asset allocation is reviewed periodically to determine whether the glidepath (or, in the case of the Day One Income Fund, the prescribed asset allocation) and underlying funds in which such fund invests remain suitable to meet the fund’s investment objective. As a result of this review, the glidepath and/or the allocation of the fund’s assets among the underlying funds may be modified.

The asset allocation changes over time. PRIAC, together with QMA, may change the Glidepath, asset allocations and Underlying Funds.

Asset allocation does not assure a profit or protect against a loss in declining markets.

The Day One IncomeFlex Target Funds follow a distinct glidepath. For more information review the IncomeFlex Target tab on this site.

Which Day One Fund may be right for you?

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

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 as the target date approaches and for ten years after 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. These risks may be increased to the extent investors begin to make withdrawals from the fund significantly before the target date. Investments in the Funds are not deposits or obligations of any bank and are not insured or guaranteed by any governmental agency or instrumentality. For investors close to or in retirement, the fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets when they are needed. For investors further from retirement, there is risk that a fund may invest too much in investment designed to ensure capital conversation and/or current income, which may prevent the investor from meeting his or her retirement goals.

The Prudential Day One® target-date funds may be offered as: (i) insurance company separate accounts available under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, a Prudential Financial company, and (ii) registered mutual funds offered through Prudential Investment Management Services LLC (PIMS), Newark, NJ, a Prudential Financial company. PRIAC is solely responsible for its own contractual obligations and financial condition.

The Prudential Day One® IncomeFlex Target® Funds were designed for use with Prudential IncomeFlex Target, an in-plan guaranteed retirement income product, and are available as insurance company separate accounts under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT. PRIAC does not guarantee the investment performance or return on contributions to those separate accounts. PRIAC is solely responsible for its financial condition and contractual obligations. Availability and terms may vary by jurisdiction, subject to regulatory approvals. Guarantees are based on claims-paying ability of the insurance company and are subject to certain limitations, terms and conditions. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.

Contract form #GA-2020-TGWB4-0805.

For more information, participants should access the participant service center or call 1-877-778-2100 for a copy of the Prudential IncomeFlex Target® Important Considerations before investing. PRIAC is a Prudential Financial company.

Please note that the Prudential Day One® IncomeFlex Target® Date Funds follow a different glidepath than the Day One Funds.

The Day One Funds, as insurance company separate accounts, are investment vehicles available only to qualified retirement plans, such as 401(k) plans and government plans, and their participants. Unlike mutual funds, the Day One Funds, as insurance company separate accounts, are exempt from Securities and Exchange Commission registration under both the Securities Act of 1933 and the Investment Company Act of 1940, but are subject to oversight by insurance regulators. Therefore, investors are generally not entitled to the protections of the federal securities laws.


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