After so many 2010 target-date funds came up short last year, Prudential Retirement investigated how they might be improved, and decided that including retirement income guarantees would be a key benefit. They would freeze the asset allocations of target-date funds five or 10 years prior to retirement, in exchange for guaranteed income.

Prudential’s whitepaper, “Strengthening Target-Date Funds With Guarantees to Enhance Retirement Security,” outlines the risks inherent in target-date funds, including a decline in market value just before retirement or outliving savings during retirement.

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