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Launch of new Retirement Account

We have launched a brand new and innovative Retirement Account on 26 September 2016 that provides customers with the flexibility to: save for their retirement; provide an income in retirement; and the facility to access their fund as they save, all within an 'account' based retirement plan.

  • Single 'one account' retirement planning solution for pension customers
  • Full flexibility matches flexibilities available under pension freedoms
  • Guarantees: Provides a minimum income guarantee and the option to protect initial capital
  • Product will be sold by financial advisers nationwide

Two core elements with built-in flexibility:

The new personal pension and income drawdown plan - The Prudential Retirement Account - will be sold on an advised basis. It has been designed to offer advisers and their clients a range of retirement planning options which are in line with the flexibilities introduced by the pension freedom reforms.

The Prudential Retirement Account contains two core elements within a single customer proposition - a Pension Savings Account, designed to build-up a pension fund and a Pension Income Account, designed to facilitate withdrawals at any time from age 55. Prudential's Retirement Account facilitates contributions from individuals, employers and third-parties and includes the option to simultaneously 'save' and 'withdraw' money from the pension, without having to cash-in or cancel the whole account.

Investment choice:

The Retirement Account investment range provides further flexibility to customers' retirement planning activity.

With a range of over 500 external funds and fund managers to choose from customers can build their own portfolios, select a range of ready-made portfolios from Prudential's OEIC range of Dynamic and Dynamic Focused Portfolios and also invest in Prudential's unique range of smoothed funds - The PruFund range.

For customers seeking further options, the Retirement Account also provides access to exchange-listed stocks and shares investment though stockbrokers.

Option of minimum income guarantee and capital preservation:

Prudential's new Retirement Account also comes with two optional guarantees that offer both capital and minimum income guarantees, for those who select PruFunds as an investment option.

  • The Capital Guarantee is available on investments in selected PruFunds and provides the option to secure some or all of the capital sum invested at a specified date.
  • The Minimum Income Guarantee provides complete peace of mind for customers by guaranteeing that they will always be paid at least a minimum amount of annual income no matter how long they live, and even if the value of their fund has fallen to zero.

When taking income, the Retirement Account facilitates flexi-access drawdown (including automated phased drawdown) and both regular and ad-hoc cash lump sums, and a minimum income guarantee.

John Warburton, CEO Distribution, at Prudential, said: "Retirement planning today is all about being able to keep your options open, knowing that you have the flexibility to adapt financially as your circumstances change in the future. Significant steps have been take to banish the rigid pension savings framework that previously existed and with the introduction of the Retirement Account we have created a fully flexible way for customers to save for and secure an income in retirement.

"Pension freedom has made the concept of saving into a pension more attractive by handing increased control to individuals over how they manage and access their retirement savings. Having first re-worked our existing products to facilitate certain aspects of pension freedom, today we have gone further by creating a comprehensive retirement plan which gives savers all the flexibility and freedom they need to prepare for and then securely enjoy their retirement.

The Retirement Account is the first product hosted on Prudential's new policy administration system. It will allow advisers, and in time, customers, more immediate interaction with their Prudential products.

For more information on the Retirement Account, speak to your Account Manager or visit Retirement Account.

For UK Adviser Use Only - Not Approved For Use With Clients