The Income Choice annuity provides a guaranteed secure level of income for clients with a pension pot of £10,000 or more after tax-free cash has been taken.
The product also allows income to grow by linking to Pru’s £66bn with-profits fund. The guaranteed secure level will increase if the smoothed return on the fund is higher than the customers’ original secure level.
The firm says the product enables people to build a long-term relationship with their financial adviser by reviewing their annuity income every year and changing it, if they wish, every two years.
Head of business development Vince Smith-Hughes says: “Prudential’s Income Choice annuity provides the flexibility for those retiring to increase or decrease their chosen income level during retirement with the added peace of mind that it has a guaranteed minimum secure level below which it cannot drop. It also represents an excellent opportunity for financial advisers to demonstrate their expertise and build long-term relationships with clients.