Prudential has introduced Guaranteed Income for Tomorrow (GIFT), an online guaranteed lifetime income product that it is distributing through Prudential Group Insurance’s worksite customer relationships.
However, GIFT is a voluntary deferred income annuity that is not an employer-provided benefit; involvement from employers is limited to allowing Prudential to make GIFT available to their employees and collecting payroll deductions, if they choose.
It can be purchased with monthly after-tax income for as low as $100, and individuals can start, stop, increase or decrease contributions at any time. The online platform has educational materials to help people make an informed purchase decision, and that is supported with a dedicated service team available to answer product-specific questions.
According to a 2016 Prudential report, 67% of American workers are afraid that their savings won’t last. Prudential says these fears are well-founded, citing a 2017 survey by the Employee Benefit Research Institute that found 32% of workers age 55 and older have less than $25,000 saved for retirement.
“This new capability is just one part of our strategy to bring financial wellness solutions to the marketplace and make it easier for individuals to build financial security,” says Jamie Kalamarides, president of Prudential Group Insurance. “GIFT provides consumers with access to a simple, flexible and affordable way to generate guaranteed retirement income through a unique solution through a sister business.