Prudential Retirement is now offering J.P. Morgan SmartRetirement Target Date Strategies and Fidelity VIP (Variable Insurance Product) Freedom Funds in its line-up of target-date funds with a guaranteed lifetime income component.
“These income guarantees combined with the benefits of target-date funds offer investors protection from market downturns and help protect their future retirement income,” said Srinivas Reddy, senior vice president of Prudential Retirement’s Institutional Income. “We are thrilled to add J.P. Morgan SmartRetirement Target Date Strategies and Fidelity VIP Freedom Funds to an impressive roster of target-date funds that already includes Vanguard and T. Rowe Price.”
The target-date funds in the J.P. Morgan Asset Management and Fidelity Investment line-ups adjust their asset mix as investors’ approach their target retirement date. Ten years before the target date of the selected fund, the guaranteed minimum withdrawal benefit (GMWB) is automatically activated, guaranteeing a minimum withdrawal amount for the participant’s entire life.
“Now is the time to change investment plan design to increase the probability of better outcomes for participants,” said Michael Falcon, head of retirement, J.P. Morgan Asset Management. “We believe our partnership between Prudential Retirement and J.P. Morgan SmartRetirement strategies will help move the industry in the right direction in addressing participants’ critical need for lifetime income.”
“We are delighted that Prudential has selected the Fidelity VIP Freedom Funds for its program,” said Scott Couto, CFA, president, Fidelity Financial Advisor Solutions. “The quality of our fund family provides a strong foundation for Prudential’s guarantees.”
Prudential Retirement delivers retirement plan solutions for public, private and non-profit organizations. Services include record keeping, administrative services, investment management, comprehensive employee investment education and communications and trustee services.