Prudential, Wells Fargo Offer Guaranteed Lifetime Income Product

By Cyril Tuohy

InsuranceNewsNet

Wells Fargo will make Prudential’s guaranteed lifetime income solution, Prudential IncomeFlex Target, available to more than 3,000 defined contribution retirement plans covering more than 3 million plan participants, Prudential has announced.

IncomeFlex Target offers investors simplicity, protection from market downturns and lifetime withdrawals with the asset mix rebalanced as the investor ages.

“Prudential Retirement is pleased to partner with Wells Fargo in helping place more and more American workers on a more secure path to and through retirement,” Sri Reddy, senior vice president of institutional income for Prudential, said in a news release.

IncomeFlex will complement Wells Fargo Retirement’s existing suite of products and services, Joe Ready, director of Wells Fargo Institutional Retirement and Trust, said.

“Retirement income is the natural evolution of retirement planning,” Ready said. “Participants know they need to save a target amount by the time they retire, but it doesn’t stop there; they need help converting their nest egg to a steady stream of income they can’t outlive.”

IncomeFlex is designed to meet the needs of the retirement market as retirees look to generate income long after they have left the workforce. The Great Recession only compounded the urgency of asset preservation for Americans, many of whom say they are unprepared for retirement.

Ready said Wells Fargo had conducted an “extensive review and selection process” before deciding on Prudential Retirement. That company’s “position and expertise in the guaranteed income space” helped clinched the deal, he said.

Guaranteed income benefit is provided through group variable annuity contracts issued by Prudential Retirement, which manages retirement plans for public, private and non-profit organizations, and helps meet the needs of more than 3.6 million participants and annuitants.

The benefit, available for an additional fee, guarantees a plan participant’s ability to withdraw amounts from the annuity annually from the plan.

Wells Fargo, a diversified financial services company with $1.4 trillion in assets, provides banking, insurance, investments, mortgage, and consumer and commercial finance. Prudential Retirement is a business unit of Prudential Financial.

Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. He has also written about food, restaurants and travel. He can be reached at [email protected].

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