GIFT, a digitally-enabled annuity solution expands Prudential’s suite of financial wellness capabilities
NEWARK, N.J., April 2, 2018 – Increasing longevity has made outliving assets in retirement a concern for many Americans, with 67 percent of U.S. workers saying they fear their retirement savings won’t last, according to a 2016 Prudential report. Their concerns are well-founded: 32 percent of U.S. workers age 55+ have less than $25,000 saved for retirement, according to a 2017 survey from Employee Benefit Research Institute.
To help Americans supplement their retirement savings, Prudential Financial, Inc. (NYSE: PRU) has introduced its first online income product, a voluntary deferred income annuity designed to generate guaranteed lifetime income. Manufactured by Prudential’s Annuities business, GIFT will be distributed through Prudential Group Insurance’s worksite customer relationships, which include employers and associations, and is currently available in 43 states (excluding NY, NJ, FL, OR, RI, CA and UT).
GIFT can be purchased with monthly after-tax contributions* as low as $100. The solution joins Prudential’s broader suite of financial wellness capabilities, which have been adopted by over 300 institutional clients.
“This new capability is just one part of our strategy to bring financial wellness solutions to the marketplace and make it easier for individuals to build financial security.”
“This new capability is just one part of our strategy to bring financial wellness solutions to the marketplace and make it easier for individuals to build financial security,” said Jamie Kalamarides, president of Group Insurance. “GIFT provides consumers with access to a simple, flexible and affordable way to generate guaranteed retirement income through a unique solution from a sister business.”
Prudential Group Insurance’s first GIFT distribution agreement was with the Texas Medical Association Insurance Trust, which started providing 50,000 Texas Medical Association members with information about the GIFT platform on March 31.
“Our agreement with Prudential to offer GIFT to TMA members—who are working and retired physicians, residents and medical students—is very much aligned with our mission to meet the personal insurance needs and protect the livelihood of Texas physicians, their families and their employees because it offers a chance to help build financial security,” said James Prescott, administrator of the Texas Medical Association Insurance Trust. “Given that we have been working with Prudential for nearly 50 years to provide group insurance benefits to TMA members, it was fitting to deepen our relationship.”
A recent Prudential survey of American workers showed that 76 percent say employers should play a meaningful role in providing access to opportunities to help them be successful. And 87 percent said those opportunities include offering financial products that help workers to build and grow wealth.
With the introduction of GIFT, individuals will have access to educational materials on the platform to help them make an informed purchase decision, and a dedicated service team will be available to answer product-specific questions. Individuals will also be able to enroll, contribute and independently maintain their account using an online platform.
The solution also offers individuals flexibility, as they can make after-tax contributions* through either electronic fund transfers or through payroll deductions. They can also start, stop, increase or decrease contributions* at any time.
GIFT is not an employer-provided benefit. Involvement from employers is limited to allowing Prudential to make GIFT available to their employees and collecting payroll deductions, if they choose.
“Many consumers want and expect the convenience of being able to research and purchase products online. Increasingly, this includes financial products,” said Kent Sluyter, president of Prudential Annuities. “With GIFT, we’re providing a different group of consumers with access via the workplace to a simple, flexible, digitally-enabled solution to complement their existing retirement strategies.”
The design of GIFT, as well as its new distribution channel, leverages the deep expertise that resides in Prudential’s Workplace Solutions and Individual Solutions business groups, which were formed in July 2017.
About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of December 31, 2017, 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 news.prudential.com.
About Prudential Group Insurance
Prudential Group Insurance manufactures and distributes a full range of group life, long-term and short-term disability and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use within employee and membership benefit plans. The business also sells critical illness, accidental death and dismemberment and other ancillary coverages and provides plan administrative services in connection with its insurance coverages.
GIFTSM is an annuity product issued by Prudential Annuities Life Assurance Corporation, Shelton, CT (main office) (in New York, by Pruco Life Insurance Company of New Jersey, main office in Newark, NJ), both Prudential Financial companies, which are solely responsible for their own financial condition and contractual obligations. Prudential Annuities is a business of Prudential Financial, Inc. GIFT is currently available in every state except [NY, NJ, FL, OR, RI, CA, and UT]. State availability is subject to change.
*Contributions are defined as Purchase Payments in the Contract.
GIFTSM is not a charitable gift annuity or a gift annuity; there is no actual gift or tax deduction.
All guarantees are based upon the claims-paying ability of the issuing company.
Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.
Annuity Income Payments and any distribution made under the annuity are subject to ordinary income tax.
Prudential Financial and its affiliates do not render tax or legal advice.