Prudential’s suite of Day One Target Date Funds has recently surpassed $1 billion in assets after growing nearly 40 percent since December 31, 2014, the company announced today. Prudential’s Day One Funds combine the business strengths of Prudential Investments and Prudential Retirement with the company’s asset management expertise to help individuals plan for a successful retirement. Prudential Investments and Prudential Retirement are businesses of Prudential Financial, Inc. (NYSE:PRU).

“We’re pleased the Day One Funds have reached this important milestone,” said Mike Rosenberg, executive vice president, Prudential Investments. “With defined contribution plans becoming the primary retirement vehicle for future retirees, we’re proud to offer a competitive target date fund option aimed at improving participant outcomes, featuring the expertise and experience of Prudential’s institutional asset managers.”

About 75 percent of respondents to a 2014 Prudential retirement preparedness survey affirmed that to “not run out of money” was their top financial goal—higher even than concerns about affording medical care. The same study found that only about a third of respondents felt confident they could meet that goal. A recently released paper called Rethinking Target-Date Fund Design outlines Prudential’s approach to building a target date suite to help manage the risks that hinder retirement readiness for retirement plan participants.

Prudential’s Day One Funds are available through eligible employer-sponsored retirement plans and designed to make it easier for plan participants to access funds with institutional-style investment attributes—including non-traditional asset classes like commodities and direct real estate—amid a growing individual responsibility to save for a retirement that could last 30 years or more. Cerulli Associates estimates that target date funds, which employ an embedded glide path, could draw as much as 35 percent of all 401(k) assets by 2019, up from 13.5 percent at the end of 2013.

“Americans are living longer, increasing the likelihood that individuals will face a financial shortfall at retirement,” said Srinivas Reddy, senior vice president, Prudential Retirement. “We believe that a glide path built on a multi-dimensional view of investment risk, inflation risk, sequence of returns risk and, the most overlooked of them all, longevity risk, can result in better outcomes and ultimately better prepare individuals for retirement.”

Prudential Financial, Inc., a financial services leader with over $1 trillion of assets under management as of March 31, 2015, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.

Prudential Day One Funds are offered in the following structures: (i) separate accounts available under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, a Prudential Financial company, and (ii) collective investment trust funds established by Prudential Trust Company, as trustee, a Pennsylvania banking corporation located in Scranton, PA and a Prudential Financial company. Each of PRIAC and Prudential Trust Company is solely responsible for its own contractual obligations and financial condition. Offers of the collective trust funds may only be made by sales officers of Prudential Trust Company.

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