Creating Lifetime Income
Today’s Annuities May Lead to a More Secure Tomorrow
As life spans increase, people are living longer in retirement than ever before. Because there’s no guarantee that traditional retirement savings will last a lifetime, it may be very important to have another source of income.
Annuities have always provided a stable, guaranteed source of income. But many people have resisted them for a variety of reasons. Now annuities and optional living benefits (available at an additional cost) have changed with the times, providing new advantages for retirees and those nearing retirement:
- You maintain a measure of control over the money in your account and how it’s invested.
- You can take advantage of potential market upswings, but your income stream is protected if the market goes down.
- You have a wide choice of investment portfolios from conservative to aggressive.
- Your income stream is protected, so you can consider investing more aggressively than you might with other retirement savings.
- If the market goes up, your monthly income can increase too.
It may be a good time to look into this new generation of annuities. Aside from Social Security and disappearing Defined Benefit pensions, annuities are the only source of guaranteed income you can’t outlive.
Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with costs and complete details. Guarantees backed by the claims-paying ability of the issuing company.
|Modern and Traditional Annuities: A Side-by-Side Comparison|
|A variety of investment options||Yes||Yes|
|Assurance you won’t outlive your money||Yes||Yes|
|More control of assets||Yes||No|
|More control of investments||Yes||No|
|A measure of protection from market downturns||Yes||No|
|Potential growth from market gains||Yes||No|
|Account value passes to beneficiaries||Yes||Yes*|
*Some older annuities may have a death benefit equal to the account value.
Investors should consider the contract and the 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.
Variable annuities are long-term investments designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor's unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to surrender charges. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty.
Your needs and the suitability of an annuity product should be carefully considered before investing. When evaluating your needs, please consider other variable annuities available from Prudential Financial companies.
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. Wachovia Corporation is the majority owner and Prudential Financial, indirectly through subsidiaries, is a minority owner of Wachovia Securities, LLC. Prudential Annuities is a business unit of Prudential Financial.