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Mark Foley, vice president of Institutional Income Solutions for Prudential Retirement, talks with PlanSponsor about his target-date fund testimony at a Department of Labor/Securities and Exchange Commission joint hearing and why guarantees are imperative.
White Paper: Strengthening Target-Date Funds with Guarantees to Enhance Retirement Security 
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The following material contains a discussion about insurance company products that can be used in conjunction with target-date funds to help provide a guaranteed retirement income.
Guaranteed income benefit is provided through group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT. This benefit, available for an additional fee, guarantees your ability to withdraw a designated amount from the annuity annually, subject to rules regarding the timing and amount of withdrawals. Guarantees are based on the claims-paying ability of the insurance company and are subject to certain limitations, terms and conditions. Product availability and terms may vary by jurisdiction. Subject to regulatory approvals. Contract form # GA-2020-TGWB3-0805 or state variations thereof.
The asset allocation of target-date funds will become more conservative as the target date approaches by lessening your equity exposure and increasing your exposure in fixed income-type investments. The target date is the approximate date when investors plan to start withdrawing their money. The principal value of an investment in a target date fund is not guaranteed at any time, including the target date.
The reference in the material to fiduciary role of PRIAC with respect to certain separate accounts only pertains to the selection, oversight and de-selection of underlying portfolio managers of these separate accounts.
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