To help address the changing financial challenges of retirement, Prudential Annuities, the domestic annuity business of Prudential Financial, Inc. (NYSE:PRU), today announced the launch of its new Prudential Defined Income® variable annuity and Prudential Highest Daily Lifetime Income® v2.1, the latest version of its innovative Highest Daily variable annuity optional benefit.
Prudential Defined Income is a long-term retirement investment that provides clients with the security of knowing exactly what their guaranteed lifetime income will be, whether they take income immediately or in the future.
Prudential’s new defined income product, available to investors as young as age 45, invests 100 percent of the premiums in the AST Long Duration Bond Portfolio, where returns accumulate on a tax deferred basis.
Prudential Defined Income offers:
- Guaranteed lifetime income growth: The income withdrawal amount is guaranteed to grow every day until lifetime income begins, while maintaining the flexibility of access to the investment.
- Defined lifetime income: The amount of income guaranteed for life and the level of deferred income growth is known at issue.
- Flexibility and Control: Investors decide when to take income, how much income to take, and continue to have access to their account value if they need it. Provides investors with control of their assets for legacy planning.
- Bond portfolio: Designed to create higher yield through investment primarily in a diversified mix of longer-duration investment grade bonds.
Prudential Defined Income provides investors in
The Retirement Red Zone ®
access to a higher level of guaranteed minimum income than generally found with other variable annuities. For example, at launch, PDI offers clients aged 65 a 5% annual lifetime withdrawal rate based on their premiums and the opportunity to grow their guaranteed income amount by 5.5% annually for as long as they defer taking lifetime income. The product is also designed so that these rates can be dynamically adjusted for new contracts based on prevailing interest rates as well as other factors.
“Now more than ever, Americans need product alternatives that help them transition from accumulation to retirement income. Prudential Defined Income is our latest innovation: a bond-driven strategy that offers income certainty, the benefit of the potential for higher expected yields of the AST Long Duration Bond Fund, and age-based guaranteed income rates,” says Bruce Ferris, head of Sales and Distribution for Prudential Annuities. “Prudential Defined Income provides the income certainty that many clients are seeking, while helping to alleviate their concerns with equity market volatility. The addition of Prudential Defined Income allows us to provide guaranteed income options for investors that are both equity and bond based.”