NEWARK, N.J.--(BUSINESS WIRE)--Introduced in January 2007 to help older workers manage the extraordinary new risks they face as they prepare for and move into retirement, Prudential Retirement’s IncomeFlex® has attracted more than $100 million in assets. Prudential Retirement is a business of Prudential Financial, Inc. (NYSE: PRU).
The $100 million milestone was achieved in about 18 months, as Prudential Retirement leads the industry with over 70 new clients having added IncomeFlex to their retirement plans. IncomeFlex is an in-plan investment option with a guaranteed minimum withdrawal benefit, combining the ability for the individual participant to capture market gains and remain protected against downturns, without losing the flexibility to control fund assets before and during retirement.
“Plan sponsors and participants are aggressively seeking in-plan offerings that simplify investment decision-making and offer a guaranteed income stream once a participant leaves the workforce,” said Brent Walder, vice president and actuary, Prudential Retirement. Prudential’s IncomeFlex not only meets these needs but also provides crucial protections against market risks,” said Walder.
An IncomeFlex client, Mitsubishi International Corp.’s vice president of human resources, Jil Galloway agreed, “We were looking for an in-plan withdrawal benefit that features flexibility and protection and Prudential’s IncomeFlex best suited our retirement plan’s needs. Mitsubishi International is now better able to help our dedicated employees obtain a more secure retirement.”
With Prudential IncomeFlex, plan participants can select from multiple investment funds—ranging from conservative to more aggressive. Each fund has an “income base” that increases with employee contributions and provides the foundation for the guaranteed lifetime paycheck. Each also has a “market value” that fluctuates with the performance of the equity and bond markets.
The withdrawal benefit can never fall below what is guaranteed by the fund’s “income base,” and it may increase based on the fund’s “market value.”
Specifically, Prudential IncomeFlex delivers:
Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administration, investment management, comprehensive employee investment education and communications, and trustee services. With nearly 85 years of retirement experience, Prudential Retirement meets the needs of over 3.5 million defined contribution participants and defined benefit participants and annuitants. Prudential Retirement has more than $158 billion in retirement account values as of June 30, 2008.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $638 billion of assets under management as of June 30, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping more than 50 million individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit www.prudential.com.