Prudential Retirement announced today that it has entered into an external partner distribution agreement with The Newport Group to offer Prudential IncomeFlex, Prudentials 401(k) retirement income solution. Under the terms of the agreement, Newport, a leading retirement services and investment advisory firm, will provide fully integrated access to IncomeFlex to its new and existing clients.
We believe that, with help, everyone can achieve a more secure retirement, and this arrangement not only expands our footprint in the retirement market, it also provides American workers outside of our client base with the opportunity to receive the guaranteed minimum withdrawal benefits IncomeFlex can deliver, said Christine Marcks, president, Prudential Retirement. Were extremely pleased to partner with such a highly regarded firm as The Newport Group and ultimately increase the number of individuals that will have access to IncomeFlex.
Prudentials innovative IncomeFlex product is designed specifically for retirement plan participants, aged 50 and older. It provides a guaranteed stream of lifetime income while still allowing clients to maintain control over their assets and retain the potential to capture market growth. Unlike other retirement income products, such as traditional annuities, IncomeFlex does not rely on guaranteed annuitization, and for an additional charge, a participant can add his/her spouse to the product account with no reduction in current benefit levels. The fee for the IncomeFlex benefit is in addition to investment management charges, and withdrawals in excess of guaranteed withdrawal amounts reduce future guaranteed withdrawals proportionately. Guarantees are based on the claims paying ability of the issuing company.