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16 January 2008


NEWARK, N.J. – Prudential Financial, Inc. (NYSE:PRU) today urged Americans who are thinking about retiring in the next few years to consider a whole new approach to turning their hard-earned retirement savings into a lifetime of income. As the first wave of America’s 76 million Baby Boomers embark on their latest life adventure – retirement – they will face the responsibility of converting their savings into a paycheck while still making their nest egg grow – a challenge complicated by the ongoing volatility in the marketplace. Based on the unique perspective gained in its 132-year history in managing money, risk, and mortality, Prudential suggests Boomers require a radical, fresh method to generating income while living in retirement.

Prudential’s Guide to Creating and Keeping Retirement Income
·        Put your principal to work. Just because a Baby Boomer may have retired, does not mean his or her retirement income should stop growing. Baby Boomers may need to continue to invest, keeping a long-term horizon in mind, in the new generation of retirement income products that guarantee a minimum annual amount of income and give them a measure of flexible control over their payouts. 
·        Come to terms with market swings. The stock market has demonstrated one thing consistently – it is never predictable. New product innovations allow Baby Boomers to take advantage of potential market upswings and help shield their income from the inevitable downturns.
·        Create a paycheck for life.  Seventy percent of older workers – those between the ages of 55 and 64 – welcome the new options that convert their assets into a guaranteed lifetime income stream.[1] The new generation of retirees now has choices of innovative products to help create a steady paycheck. Some of these products come with built-in guarantees, so individuals do not need to worry about outliving their guaranteed money stream. Investors can retain some ownership of their money too, while receiving the guaranteed lifetime income.
·        Maintain a measure of control of and access to the nest egg. Most individuals want to maintain control over their savings, and have the ability to access it for that proverbial “rainy day.” They also want their heirs to receive any assets remaining in their account at death. The new product solutions available to individuals and to workers through their workplace may allow both greater flexibility and access to funds as compared to traditional products.
·        Consider delaying Social Security Benefits. Individuals can claim Social Security retirement benefits as early as age 62 or as late as age 70. The longer the claim is delayed, the larger the monthly benefits. [2]
·        Be tax smart in taking asset distributions. When considering how to make retirement assets last as long as possible, individuals must consider the tax liabilities inherent in their assets and how to best manage the unlocking of those tax liabilities over time. [3]
Retirement Income Solutions
“There is a retirement income revolution underway in America and Prudential is leading the way with products that turn retirement assets into a guaranteed income stream for life,” said David Odenath, president, Prudential Annuities. “The introduction of Lifetime 5 in 2005 and subsequently Highest Daily Lifetime Five (“HDLT5”) were groundbreaking innovations that have changed the annuities industry as well as guaranteed income options for retirees. These products have launched a new wave of variable annuity product features with Guaranteed Minimum Withdrawal Benefits (“GMWBs”). This income solution, available to consumers through financial professionals, is designed to help take advantage of the markets when they are strong and offer a measure of protection against downside risk.”

[1] Source: Prudential Retirement’s 2006 Workplace Report on Retirement Planning
[2] Source: Prudential Financial, Innovative Strategies to Help Maximize Social Security Benefits, April 2006
[3] Source: Prudential Financial, Tax Wise Retirement Distribution Planning, white paper, April 2006

“We have a complementary solution for companies to offer their employees through their 401(k) plans,” said Christine Marcks, president of Prudential Retirement. “Our innovative product, Prudential IncomeFlex®, provides a guaranteed stream of lifetimeincome while still allowing plan participants to maintain control over their assets, retain the potential to capture market growth and it also helps protect a pre-retiree’s income from losses. Unlike other retirement income products, such as traditional annuities, IncomeFlex does not rely on guaranteed annuitization, and a participant can include his or her spouse to the product account with no reduction in current benefit levels.” 
“Both of these income solutions – whether it is our retail HDLT5 or workplace IncomeFlex – offer a level of guarantee that is backed by the strength and stability of Prudential companies,” added Marcks. “These companies have a strong reputation for managing money, risk and mortality. It is this historic track record which gives our customers the unique opportunity to help grow and protect their wealth in retirement.”
A variable annuity is a contract with an insurance company whereby the insurer agrees to make periodic payments beginning either immediately or at some future date. Variable Annuities offer a wide range of professionally managed investment options, guaranteed death benefits, and a variety of payout options including guaranteed income for life. The guarantees are contingent on the claims-paying ability of the issuing company. And, it’s important to note the annuity’s contract value is subject to market fluctuation, investment risk, and possible loss of principal. They have fees and expenses. If your clients take early withdrawals, they may be subject to surrender charges. Partial or complete withdrawals of taxable amounts will be subject to ordinary income tax and, if prior to age 59 ½, may result in an additional 10% federal income tax penalty. Withdrawals from an annuity generally have the effect of reducing the death benefit and cash surrender value. There are fees associated with optional benefits, which are in addition to fees, and charges associated with the basic annuity. See the prospectus for more detailed information about fees and limitations.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $637 billion of assets under management as of September 30, 2007, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit
Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ, or by Prudential Annuities Life Assurance Corporation, Shelton, CT. All are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. 
Investors should consider the contract and underlying portfolios’ investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing.
Prudential IncomeFlex funds are separate accounts available under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC). PRIAC does not provide any guarantee of the investment performance or return of contributions to those separate accounts. PRIAC’s guarantee of certain withdrawals is supported by PRIAC’s general account and is contingent on its claims paying ability and are subject to certain limitations, terms and conditions. To maintain the IncomeFlex benefit, you must invest in one or more Prudential IncomeFlex Funds. Like all variable investments, these funds may lose value. Guaranteed growth of the income base ends at age 70 or when guaranteed withdrawals begin, whichever is earlier. Withdrawals in excess of the guaranteed lifetime income amount will reduce future guaranteed withdrawals proportionately. Spousal coverage is an additional fee. You should consider the objectives, risks, charges, and expenses of the funds and guarantee features before purchasing this product. You should carefully review the Prudential IncomeFlex Important considerations before purchasing this product.   Product availability and terms may vary by jurisdiction. Subject to regulatory approvals.
 Includes Lifetime Five, Spousal Lifetime Five, and Highest Daily Lifetime Five.
Prudential, Prudential Financial, the Rock logo and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America and its affiliates. All Prudential companies, and each is solely responsible for its financial condition and contractual obligations.
Prudential IncomeFlex: Contract form number GA-2020-IFGW2-0805 or state variations thereof.
Prudential Lifetime Five: Contract number RID-LT5 (03/06)
Spousal Lifetime Five: Contract number RID-JLT (03/06)
Prudential Highest Daily Lifetime Five: Contract number P-RID-HDLT (1/07)
IFS-A142251 Ed. 1/2008
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