Business Wire
Prudential Financial, Inc. announced the launch of ActiveIncome, a first-of-its-kind insurance overlay option now accessible through Dimensional Fund Advisors’ unified managed accounts (UMA) platform.
ActiveIncome expands access to retirement security by pioneering an innovative new category of lifetime income to managed accounts, using a contingent deferred annuity option to address the evolving needs of retirement investors who work with registered investment advisors (RIAs).
Clients can stay invested, preserving liquidity and flexibility, while gaining the security of a seamless lifetime income stream that varies with investment performance, all without moving assets to an insurance provider. Prudential’s ActiveIncome insurance overlay is accessible from the Dimensional UMA platform via the Fiduciary Exchange LLC (FIDx) Insurance Overlay marketplace and supports all available investment options on the Dimensional UMA platform, including exchange-traded funds, mutual funds, separately managed accounts, and model strategies.
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“With 11,200 Americans turning 65 every day, ActiveIncome is designed to create better retirement outcomes by thoughtfully addressing longevity risk. As Americans are planning for longer — potentially 30 or more years — and healthier retirement years, innovative approaches are required,” said Dylan Tyson, president of Retirement Strategies and head of Prudential’s Global Retirement Center of Excellence. “We’re proud of the way Prudential is leading from the front, collaborating with a leading global investment firm in Dimensional Fund Advisors and an innovative, visionary insurance technology platform in FIDx, to help more people protect their life’s work, so they can live better lives, longer.”
Savina Rizova, co-chief investment officer and global head of research at Dimensional Fund Advisors, said: “Dimensional has long advocated for focusing on income in retirement planning. We are pleased to further expand our business relationship with an industry leader like Prudential to enable ActiveIncome overlays as an option on our UMA platform. Dimensional SMAs and UMAs allow investment professionals to design robust investment solutions that meet the specific needs of their clients. Now advisors can contract with Prudential to include insurance overlays that help deliver financial security and peace of mind to their clients in retirement.”
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