Annuity Strategies for Every Retirement Challenge

What is a variable annuity?

A variable annuity is a contract with an insurance company. It's a long-term investment designed for retirement purposes. You invest money in professionally managed investment portfolios, where it accumulates tax-deferred. 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. When you retire, your investment can be used to generate a stream of regular income payments that are guaranteed for as long as you live. In addition, variable annuities may provide a guaranteed death benefit for your beneficiaries. It is important to remember that annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.

What happens if I need access to my variable annuity?

There are limitations and restrictions when making withdrawals. Withdrawals or surrenders may be subject to contingent deferred sales 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, sometimes referred to as an additional income tax. Withdrawals reduce the account value and the living and death benefits proportionately.

What is a fixed indexed annuity?

A fixed indexed annuity (FIA) is a tax-deferred financial tool designed for the long term. It offers a level of protection for your money against loss with the opportunity for it to grow based on the performance of a specific market index, or combination of indices. With a FIA, your money is not actually invested in any index, but rather may earn interest based on the index's performance. There is typically an upper limit, known as a "cap," on the amount of potential interest credited in a given period, as well as a "floor" that offers downside protection. For complete information about the annuity, please refer to the Important Information Disclosure Statement PDF opens in a new window which is also available from your financial professional.

What happens if I need access to my fixed indexed annuity?

After the first contract year, you may withdraw up to 10% of the account value (based on the previous contract anniversary, after all index/interest credits are applied) without surrender charges or a Market Value Adjustment (MVA). If you need more than the Free Withdrawal Amount, you can withdraw as much of your account value as you need, but keep in mind that surrender charges and an MVA will apply. If you make a full withdrawal of your annuity, you will receive the greater of your account value (minus any surrender charges and adjusted by any applicable MVA) and your Minimum Guaranteed Surrender Value. Any withdrawals taken before your first contract anniversary will be subject to surrender charges and an MVA will apply. Also, it's important to note that if you take a withdrawal or annuitize your contract, taxes will apply. The tax treatment will differ depending on whether you purchased your annuity with pre-tax (qualified) or after-tax (non-qualified) dollars. Please consult your tax advisor for more information.

Why does the company behind the annuity matter?

When the time comes for you to use the benefits that are offered by an annuity, it is important to remember that all guarantees, including any optional benefits, are backed by the claims-paying ability of the issuing insurance company.

Who can help me determine if an annuity is right for me?

Your financial professional can help you determine if an annuity is suitable for you. Prudential Annuities and its distributors and representatives do not provide tax, accounting, or legal advice. Please consult your own financial professional or accountant when making important investment decisions. The selections you choose together with your financial professional are all dependent on your investment goals and your risk tolerance.

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.

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

This material may not be approved in all states.

Issued on contracts: P-OB/IND(5/14), P-OC/IND(5/14), P-BBND(2/13), P-RID-LI-DB(5/14), ICC17-FIAE(11/17), FIAE/IND(11/17), P-BLX/IND(2/10), P-CR/IND(2/10), et al. or state variation thereof.

Issued on endorsements: ICC17-FIA-P2P(11/17), ICC17-FIA-MVA(11/17), et al. or END-FIA-MVA(11/17), et al. or state variation thereof with schedules ICC17-FIA-P2P-SCH(11/17), ICC17-FIA-MVA-SCH(11/17), et al. or END-FIA-MVA-SCH(11/17) et al. or state variation thereof.

Issued on riders: P-RID-HD(2/14), P-RID-DBROLL(5/17), et al. or state variation thereof.

For Compliance Use Only: 1000371-00001-00