Prudential Retirement has added the stable value Prudential Protection Account to its suite of institutional 401(k) retirement solutions. The account guarantees up to $250,000 of principal and accrued interest through the Federal Deposit Insurance Corp.
“Plan sponsors across the nation are obligated to not only find institutional solutions that help them manage pension benefits and risks for their employees but also to help their employees make smart financial decisions about their retirement savings,” said Carlos Mello, vice president of Prudential Retirement. “Prudential Protection Account complements the broad suite of institutional solutions that we offer to plan sponsors and their participants. It offers liquidity, principal protection and a competitive rate of return.”
Prudential expects the option might be especially attractive to near-retirees concerned about preserving their nest egg, Mello added.