Prudential Launches Flexible Lifetime Annuity With Improved Benefits
on: March 17, 2010, 7:26 am
Prudential has further developed its annuity range this spring
with the launch of a reinvigorated Flexible Lifetime Annuity.
The launch comes at a time when falling corporate bond rates are putting downward
pressure on conventional annuity rates and people in retirement are increasingly looking beyond traditional choices when
considering their retirement income
The new Flexible Lifetime Annuity launches with a £35,000
minimum purchase price (after tax-free cash) - down from £75,000 - and no maximum
limit, making it more accessible to more customers.
The fund range is also improved and now comes complete with a range of 50 funds, 32
of which are new.
The increased number of funds will mean a wider investment choice for people who
select the Flexible Lifetime Annuity in their retirement. It will include funds
from the leading investment houses including Artemis, AXA, BlackRock, Gartmore, and
JP Morgan among others, while retaining the current range which includes funds from
Invesco, M&G, Newton and Prudential.
The rationale behind increasing the number of funds is to provide greater variety
and flexibility within the four investment strategies offered by the Flexible
Lifetime Annuity product.
Flexible Lifetime Annuity customers can choose from one of four investment
strategies - cautious, standard, adventurous and the self-managed investment
strategy - which reflect the level of risk for each strategy, rather than the funds
within the portfolio.
By increasing number of funds within the Flexible Lifetime Annuity customers will
have an opportunity for greater exposure to a complete range of risk graded funds,
each designed to suit both current and future appetite to risk, and with the
built-in option to switch funds throughout the lifetime of their Flexible Lifetime
Vince Smith-Hughes, Prudential's head of business development for retirement income, said: "We are seeing a shift in the
options that people are prepared to consider when selecting an annuity. Greater
choice, flexibility and investment diversity are becoming increasingly important to
our customer base as it becomes more sophisticated.
"A new lower minimum investment amount and a revamped fund range has increased the
choice available to customers and is part of our strategy to offer the widest range
of annuities in the UK."
Notes to Editors:
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journalists and should not be used by consumers to make financial decisions. Full
consumer product information can be found on the Prudential website.
The value of funds can go down as well as up and people may get back less than they
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