Prudential launches SimplyIncome for workplace retirement plans on Fidelity Investments™ platform

Collaboration expands access to retirement security for more than 100,000 plan participants.

NEWARK, N.J.--(BUSINESS WIRE)--
Prudential Financial, Inc. (NYSE: PRU) is collaborating with Fidelity Investments™ to address growing demand among consumers for a workplace retirement plan option that will convert participants’ retirement savings into a protected stream of income.

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Ann Nanda, Head of Future Growth Initiatives and Distribution Enablement, Prudential Retirement Strategies (Photo: Business Wire)

Prudential recently launched Prudential SimplyIncome^SM — a new single-premium immediate annuity, or SPIA — within employer-based retirement plans administered by Fidelity Investments. Prudential is one of four insurers on Fidelity’s Guaranteed Income Direct platform offering an embedded distribution option for defined contribution plans like 401(k)s, 403(b)s and 457(b)s.

The SECURE Act of 2019 provided a “safe harbor” to make it easier for annuities to be included as options in employer-based retirement plans. This prompted the financial services industry to expand in-plan income offerings to address consumers who are concerned that they’ll outlive their retirement savings.

Ann Nanda, head of Future Growth Initiatives and Distribution Enablement at Prudential Retirement Strategies, notes that the collaboration with Fidelity helps expand access to retirement security for more consumers and aligns with a key Prudential business priority to deliver retirement income in brand-new ways.

“No one knows how long they’ll live, and it’s important for people to understand whether they will be at risk of running out of money in retirement,” she said. “Prudential SimplyIncome provides a new decumulation option for plan participants looking for a predictable retirement income solution, delivered through a streamlined, tech-forward experience on Fidelity’s Guaranteed Income Direct platform.”

The SECURE Act also required defined contribution plans to start showing workers the amount of lifetime income their account balances could generate in retirement. This new annual illustration requirement reframed the risk for plan sponsors beyond just customary investment metrics to bring more attention to longevity risk.

“Prudential SimplyIncome is an example of how we are co-creating innovative solutions for employer-based retirement plans, in this case working with a top plan administrator to bring a protected income option to plan sponsors and participants within a system they already know.” said Nanda. “It’s an additional option to complement the many great solutions that exist for individual retirement account owners outside of workplace plans.”

ABOUT PRUDENTIAL

Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.4 trillion in assets under management as of Sept. 30, 2023, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for nearly 150 years. For more information, please visit news.prudential.com.

The Retirement Strategies team at Prudential delivers industry-leading solutions for growth and protection to more than 2 million individual and institutional customers.* The business makes more than $12 billion of protected income payments to customers each year,* with a focus on expanding access to retirement security through its lines of Individual Retirement protected accumulation and income strategies and Institutional Retirement lines of business spanning U.S. Pension Risk Transfer, International Reinsurance, Stable Value, and Structured Settlements.

*Retirement Strategies, By the Numbers, November 2023.

© 2024 Prudential Financial, Inc. (PFI) and its related entities. Prudential, Prudential Retirement Strategies, the Prudential logo, the Rock symbol and Rock Solid are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

Annuity and insurance products are issued by The Prudential Insurance Company of America (PICA) and Pruco Life Insurance Company (in New York, by PICA only), both located in Newark, New Jersey (main office). Both are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations.

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Source: Prudential Financial, Inc.