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Even a group of financially savvy professionals need an expert’s guidance with their own financial wellness.

By John Chartier

May 14, 2019

As annuities enjoy a resurgence in the U.S. fueled by volatile markets, volatile interest rates and an aging workforce looking for guaranteed income in retirement, finding new ways to deliver retirement solutions to niche audiences is leading to creative solutions.

For more than 70 years, Prudential has partnered with the American Institute of Certified Public Accountants (AICPA) and other associations to bring innovative insurance and financial wellness solutions to their members.

So when members of the AICPA asked for recommendations to help them achieve their retirement goals, the association approached their longtime benefit providers, Aon Insurance Services and Prudential, about offering a solution that provided a guaranteed source of income.

The result was a simplified solution designed to address members’ financial wellness needs. Essentially, it’s an existing variable annuity with an optional living benefit combined with a unique way of distributing it to AICPA members.

“This is giving our organization an opportunity to offer what is traditionally a more complex retirement offering in a simplified format to a targeted audience of people who have identified retirement income as a need,” says Michael Guido, vice president of Product Management with Prudential Annuities.

And this is not a unique problem to the AICPA. The Bureau of Labor Statistics reports about 40 percent of people age 55 and older were actively participating in the labor force in 2014. Consider that percentage is only expected to increase through 2024, and the appeal of annuities becomes even clearer.

“The AICPA was concerned. Many of their members were approaching retirement age, and the association realized they didn’t have enough retirement solutions for people in their 50s,” says Kevin Morgan, vice president, Association and Cross-Business Initiatives with Prudential Group Insurance.

Morgan notes that even though this was a group of educated, professional, financially savvy people, it would be wrong to assume they don’t need an expert’s guidance with their own financial wellness. A comment from an AICPA governing member confirmed the need exists.

After several meetings with AICPA members, the team determined that the Prudential Premier Retirement Variable Annuity with Highest Daily Lifetime Income Benefit met the needs of the association members and their spouses age 50 and older.

AICPA members who qualify for the annuity will have access to dedicated financial representatives through LINK by Prudential, the company’s hybrid advisory platform. These representatives will help them get more information on the annuity and decide if it is right for them. Members can also consider other financial solutions through the platform or they can speak face to face with a financial professional.

This feature in particular is what really makes the offering unique. It’s an example of how Prudential is developing new channels to build direct relationships with individuals through the workplace and associations to help them achieve financial wellness.

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Variable annuities are issued by Pruco Life insurance Company (In New York, by Pruco Life insurance Company of New Jersey), Newark, NJ (main office) and 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. Prudential Annuities is a business of Prudential Financial, Inc.

Annuity contracts contain exclusions, limitations, reductions of benefits, and terms for keeping them in force. Your licensed financial professional can provide you with complete details.

Investors should consider the features of the contract and the underlying portfolios’ investment objectives, policies, management, risks, charges and expense carefully before investing. This and other important information is contained in the prospectus, which can be obtained from your financial professional. Please read the prospectus carefully before investing.

A variable annuity is a long-term investment designed for retirement purposes. Investment returns, and the principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original investment. Withdrawals or surrenders may be subject to contingent deferred sales charges.

Variable annuities offered by Prudential companies have an annual cost of 0.35% to 1.95% for mortality expense and administration fees, with an additional fee related to the professional investment options. The fees will vary depending on the underlying annuity and investment options selected.

All references to income certainty and guarantees, including optional benefits, are backed by the claims-paying ability of the issuing company and do not apply to the underlying investment options.


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