Day One Funds

Preparing for the first day of retirement and all the days thereafter with target date funds

Prudential is a leader in solving for retirement income needs, and we have approached the design and glidepath construction of our Day One Funds with this focus. The Day One 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 participants that plan to retire in or near that date. For those who are already retired or seek current income, there is the Day One Income Fund, which has the highest fixed-income exposure and is the most conservative of the Day One Funds3.

Each Day One Fund’s asset allocation follows a glidepath that becomes more conservative over time by reducing exposure to equity investments and increasing exposure to fixed income investments.

Day One Funds Glidepath

Learn more about how the asset allocation of each Day One Fund adjusts over time in accordance with the Funds’ glidepath.

Provides diversification with a purpose

Our Day One Funds diversified portfolios include:

  • Equities - Provides exposure across market capitalizations and geography, to help provide access to a broad opportunity set
  • Fixed-income – Helps provide lower volatility relative to other asset classes, which is particularly important as the target date approaches
  • Non-traditional asset classes – Offer the potential for increased returns with low correlation to stocks and bonds, as well as the potential to hedge inflation

Life has many twists and turns that can affect how you plan for retirement. Day One Funds offer the flexibility to change to a fund with a different target date, offering a different growth potential, with corresponding risk, at any time in your life.

Major events, including those listed below, can happen in life and affect your finances, including how you save for retirement:

  • Getting married
  • Getting divorced
  • Having a baby
  • Buying a home
  • Receiving an inheritance
  • Opening a business
  • Going back to school
  • Becoming a caregiver

It's smart to periodically reevaluate your contribution to your employer's retirement plan, your investment allocation in the plan, and your risk tolerance, to help determine if you are still on track to meet your retirement savings goals.

3Target date funds should not be selected solely based on age or the date the participant intends to retire. Rather, participants should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. It is possible to experience market value declines, including near or following retirement. While a participant’s future retirement income is protected from market declines (once the guarantees are activated) a fund’s market value is not guaranteed. The funds’ asset allocations may be subject to change.

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.

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

More about Day One Funds

See all Day One Funds

Learn more about the mix of assets in each of Prudential’s Day One target date funds.

Preparing for the First Day of Retirement and All the Days Thereafter PDF file opens in new window

Learn more about Prudential Day One Funds.