Guaranteed Retirement Income Key as Social Security Fund Declines, According to Christine Marcks, President of Prudential Retirement (Business Wire)
Tue, 26 May 2009 14:31:00 Etc/GM
“While we do not believe that the government will allow this to happen, given the stress on the system, Americans should not be relying on Social Security as their only source of retirement income,” said Marcks.
Individuals need to continue to build their own diversified retirement savings plans, including 401(k)s and other savings to ensure they can achieve their retirement goals. They also need to heed lessons from the current financial crisis, and protect their retirement income from future downturns. Eighty-one percent of near-retirees say the stock market has hurt their prospects for a secure retirement, with three in 10 actually postponing their retirement due to the stock market decline, a recent Prudential study showed.1
“The insurance industry is responding by leveraging risk management expertise to deliver lifelong guaranteed income for those saving for retirement, as well as protect future retirement income against market declines,” added Marcks. “Instead of concentrating on the total amount of savings at retirement, it is more important to have a plan to provide sufficient income for life. Many Americans achieved their retirement goals but saw their wealth and retirement security erode with the stock market decline.”
“Guaranteed retirement income solutions provide investors with the ability to retain a measure of control of their retirement investments and lock in a monthly source of income for life,” said Stephen Pelletier, President of Prudential Annuities. These private sector solutions offer the upside of equity markets, which has driven investment in 401(k) plans over the past twenty years, as well as the comfort of having predictable retirement income, like that from traditional pension plans.
“There has never been a time when the importance of having guaranteed retirement income has been as apparent,” added Pelletier. “It is important that Americans explore the various options open to them, seek professional advice and start planning for retirement as early as possible in order to make the best choices.”
Editors Note: Prudential retirement resources are available to provide insight on a broad range of retirement issues including retirement planning, tax considerations, defined contribution programs, Social Security and annuities.
Investors should consider the contract and the underlying portfolios’ investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectus, which can be obtained from your financial professional. Please read the prospectus carefully before investing.
Annuities are appropriate for long-term investing and designed for retirement purposes.
Annuities are subject to investment risk. Your client’s principal value may decline.
Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company, Hartford, CT, or its affiliates. Guaranteed retirement income benefit is available for an additional cost under group variable annuity contracts. Guarantees are based on the claims paying ability of the issuing company.
Annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ, or by Prudential Annuities Life Assurance Corporation, Shelton, CT. Prudential Annuities Distributors, Inc., Shelton, CT, distributes all. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Prudential Annuities is a business unit of Prudential Financial.
About Prudential
Prudential Financial, Inc. (NYSE: PRU - News), a financial services leader with approximately $542 billion of assets under management as of March 31, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow
and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.
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1 Prudential Financial’s Profiles in Retirement research report, May 2009.
Contact:
Prudential Financial Dawn Kelly, 973-802-7134 or Lisa Bennett, 973-802-2894
source: http://biz.yahoo.com/bw/090526/20090526005753.html?.v=1