Annuity Blog

Prudential’s Latest Annuity Products Target Women and Wider Range of Investors

Posted by: Anne Morrison | Jan 15, 2015

investing for the future

In an effort to provide more saving options and retirement income alternatives to Americans, Prudential has launched three new products within the last year and a half, each product targeting specific groups of investors and retirees.

According to the Insured Retirement Institute (IRI), only $2.6 trillion have been invested in annuities in the country, compared to $18 trillion in money managed assets and mutual funds. Prudential’s new annuities aim to balance these figures by appealing to more people.

Prudential Premier Investment

The newest product innovation is called Prudential Premier Investment, which is designed to appeal to investors looking for better tax protection on their investments.

“It allows people to defer taxes over time and reposition their investments through tax-free transfers and as their assets appreciate reduce their expenses,” said Bruce Ferris, president of Prudential Annuities Distributors.

The product should appeal to investors facing increased tax pressures and growing fees. It invests your funds in equity and fixed income options, domestic and global strategies, as well as alternative assets.

Prudential Immediate Income Annuity

Immediate income annuities can give the best minimum income payments for a single premium because of the contract’s predictability. They avoid client behavior risk and market volatility but offer no cash value. But as they can offer the highest level of income, they should appeal to women and a wider range of investors.

“Generally women understand that they will outlive their male counterparts but a significant portion of women are not as prepared as they’d like to be for that life changing event,” said Dawn LeBlanc, vice president of product management with Prudential.

Prudential Defined Income Variable Annuity

As a deferred income annuity, Prudential’s new variable annuity delays the income stream to a future date, usually more than a year. This allows it to gain more market exposure, which should appeal to investors looking to be more involved in stock performance.

There is a risk that clients may pass away before they start receiving their income stream; however, once you begin receiving payments, the types of holdings for both single premium immediate annuities and deferred variable annuities are the same – long duration bonds within the insurer’s general account.

Prudential’s latest annuity products should cater to various retirement goals and risk appetites, and hope to provide better future income options to people.

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