Product & Service Launches – 1/25/24

Prudential Announces SimplyIncome for Workplace Plans

Prudential Financial Inc. noted the launch of SimplyIncomeSM, a single-premium immediate annuity, or SPIA, for employer-based retirement programs being administered by Fidelity Investments. The announcement came after Fidelity went live nationally with a 401(k)-to-annuity employee benefits offering.

Prudential is one of a number of insurers on Fidelity’s Guaranteed Income Direct platform, with its offering going to more than 100,000 plan participants, according to Prudential.

Ann Nanda, head of Future Growth Initiatives and Distribution Enablement at Prudential Retirement Strategies, notes that the collaboration with Fidelity helps expand access to retirement security for more consumers and aligns with a key Prudential business priority to deliver retirement income in brand-new ways.

“Prudential SimplyIncome is an example of how we are co-creating innovative solutions for employer-based retirement plans, in this case working with a top plan administrator to bring a protected income option to plan sponsors and participants within a system they already know.” Ann Nanda, head of future growth initiatives and distribution enablement at Prudential retirement strategies, said in a statement.

Prudential makes more than $12 billion in protected income payments to customers every year.

Betterment at Work Launches Small Business Student Loan 401(k) Matching

Financial benefits provider Betterment at Work has launched a platform for small businesses to provide employees with a student loan 401(k) company match if they’re using Betterment’s 401(k) services.

The benefits offering allows qualified student loan repayments to count as elective deferrals that are eligible for a company match from a small employer. Employees with access to Betterment’s 401(k) can record their loan payments within the platform, according to the firm. Employers can choose to make the match annually, even if education debt payments are made on a per-payroll basis.

“We know that student debt can be a major impediment to saving for retirement,” Sarah Levy, CEO of Betterment, said in a statement. “Our industry-first student loan 401(k) matching solution is a compelling addition to our modern 401(k) that will help to broaden plan participation to those whose student debt previously kept them from saving for retirement.”

Corebridge Financial Brings Multi-Year Guaranteed Annuity to RIAs

Corebridge Financial has added a multi-year guaranteed annuity with the goal of growth and principal protection to its offerings for registered investment advisers.

The annuity allows consumers to lock in the investments for three, five or seven years, but also allows purchasers to maintain or modify their term at renewal without having to fill out a new application or purchase a new contract. The product has no withdrawal charges and gives consumers access to their money to make it easier for RIAs to manage assets should client needs change.

“American Pathway Advisory MYGA makes it simple and efficient for RIAs to maintain a consistent allocation to guaranteed rates within their client portfolios,” Bryan Pinsky, president of individual retirement at Corebridge Financial, said in a statement. “While most MYGAs default to a one-year rate at the end of their term, American Pathway Advisory allows consumers to easily renew for another three, five or seven years and possibly benefit from higher rates.”

The annuity offers tax-deferred growth, with no income taxes being paid until earnings are withdrawn.

RIAs can access MYGA, along with related educational tools and resources, on Corebridge’s RIA-dedicated website.