Prudential Retirement has entered into an agreement with Hewitt Associates to offer Prudential’s IncomeFlex Target to Hewitt’s retirement plan clients.

IncomeFlex Target offers guaranteed lifetime income, downside income protection, plus growth potential for individuals with assets in target-date or lifecycle funds. The option permits individuals to seamlessly convert their savings into a guaranteed income stream.

“As the largest independent recordkeeper of 401(k) plans and a leader in retirement consulting and research, Hewitt’s understanding of participant behavior and what it takes to provide a successful retirement, positions them to effectively design a delivery platform for products like IFX Target,” said Christine Marcks, president of Prudential Retirement.

Alison Borland, Hewitt’s retirement outsourcing strategy leader, added: “The median rate of return for 401(k) participants was negative 28% in 2008, with 56% of workers over 60 years of age losing more than 20% of their savings. Our objective is to provide tools to employees that can reduce the risks of significant market declines shortly before retirement.”

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