The Defined Contribution (DC) industry is about to see a major secular shift towards the delivery of income as participants start approaching retirement in greater numbers. This shift will be transformative for the DC landscape over the longer term.

At PGIM, we believe a comprehensive approach to income requires new thinking and new solutions, deployed in a personalized and flexible way. Bringing lifetime income solutions to American workers and retirees will require a thoughtful, outcomes-based framework. Specifically, we believe a solution must go beyond just an investment product. It must also help participants prepare for retirement and help retirees implement a sustainable spending plan in retirement. This brings us to our key retirement income beliefs:

1. An investment methodology is needed that specifically solves for individuals' unique spend down goals in retirement.
2. Additional asset classes should be incorporated in the asset allocation strategy to help retirees manage spend-down risks.
3. Available guaranteed income sources should be considered as part of the asset allocation process and optimized to help retirees manage the core risk of outliving their savings.
4. An institutional investment approach that leverages the scale and fiduciary oversight offered by DC plans is critical to efficiently building wealth and delivering income.
5. Technology is central to delivering personalized advice and solutions by combining our first four retirement income beliefs to address each individual's particular situation.

PGIM DCS - 4677021