Annuity strategies for your retirement challenges

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.

Index-linked variable annuity products are complex insurance and investment vehicles and are long-term investments designed for retirement purposes. There is risk of loss of principal if negative index returns exceed the selected protection level. Gains or losses are assessed at the end of each term. Early withdrawals may result in a loss in addition to applicable surrender charges. Please reference the prospectus for information about the levels of protection available and other important product information.

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 10% additional tax. Withdrawals reduce the account value and the living and death benefits proportionately. Withdrawals can be processed online via your Prudential online account Opens in a new window.

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 an 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 Downloads a PDF file which is also available from your financial professional.  

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 pretax (qualified) or after-tax (nonqualified) dollars. Please consult your tax advisor for more information. Withdrawals can be processed online via your Prudential online account Opens in a new window.

A fixed annuity is a tax-deferred financial tool that can be immediate or deferred. It provides a guaranteed rate of return on your principal for a specified period of time and protects it from market risk. Fixed annuities generally have lower fees than variable annuities and are considered less volatile. For complete information, please refer to the Important Disclosure Statement Downloads a PDF file which is also available from your financial professional.  

During your first contract year, you can take a withdrawal of up to 10% of your total purchase payment(s) without surrender charges or Market Value Adjustment (MVA). After your first contract anniversary, you can withdraw up to 10% of your Account Value on the previous contract anniversary each contract year. If you need more than your 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 taken during the initial guarantee period. Withdrawals above your Free Withdrawal Amount also proportionately and permanently reduce your living benefits.

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.

Your financial professional can help you determine if an annuity is suitable for you. We do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant. The selections you choose together with your financial professional are all dependent on your investment goals and your risk tolerance.

Some annuities offer a Market Value Adjustment option, which imposes a positive or negative adjustment if you prematurely surrender your fixed annuity or fixed indexed annuity.