Prudential has further developed its pension annuity range by launching a revised Flexible Lifetime Annuity pension product. 

The launch has come at a time when falling corporate bond rates have been putting downward pressure on conventional annuity rates and people reaching retirement are increasingly looking beyond traditional annuity choices when considering their retirement income and annuity options. 

The new Prudential Flexible Lifetime Annuity launches with a £35,000 minimum purchase price for the actual annuity (after tax-free cash or pension commencment lump sum) which is a big reduction down from £75,000 previously and there is no maximum limit, making it more accessible to more customers.

The fund range offered by Prudential is also improved and now comes complete with a range of 50 funds, 32 of which are new. 

The increased number of funds will mean a wider investment choice for people who select the Prudential Flexible Lifetime Annuity for their retirement income. In addition to the previous offering by Prudentia;l of its funds from Invesco, M&G, Newton and Prudential, those using the Prudential Flexible Lifetime Annuity will also have the choice of funds from other leading investment houses including Artemis, AXA, BlackRock, Gartmore, and JP Morgan. Prudential annuities chose to increase the number of funds so as to provide greater variety and flexibility within the four investment strategies offered by the Prudential Flexible Lifetime Annuity product. 

Prudential Flexible Lifetime Annuity customers can choose from one of four investment strategies - cautious, standard, adventurous and the self-managed investment strategy - which reflect the level of risk for each strategy, rather than the funds within the portfolio. 

By increasing number of funds within the Prudential Flexible Lifetime Annuity Prudential customers will have an opportunity for greater exposure to a wider range of risk graded funds, each designed to suit both current and future appetite to risk, and with the in built option to switch funds throughout the lifetime of their Prudential Flexible Lifetime Annuity. 

Vince Smith-Hughes, Prudential's head of business development for retirement income, said: "We are seeing a shift in the options that people are prepared to consider when selecting an annuity. Greater choice, flexibility and investment diversity are becoming increasingly important to our customer base as it becomes more sophisticated. 

"A new lower minimum investment amount and a revamped fund range has increased the choice available to customers and is part of our strategy to offer the widest range of annuities in the UK."

Annuity Arrow welcomes the launch of the revised Prudential Flexible Lifetime Annuity pension product because it makes the product accessible to more customers due to the dramatic reduction in the minimum annuity fund purchase price from £75,000 to £35,000. More investment fund choice is always better as it means better matches to customers’ risk profiles and investment strategies are possible.  However, as ever, we must remind our customers that the value of funds can go down as well as up and people may get back less than they originally invested. The information contain here is for information purposes only and in no way represents a recommendation to effect a Prudential Flexible Lifetime Annuity. If you would like to learn more about the Prudential Flexible Lifetime Annuity, please contact Annuity Arrow and a pension IFA will be delighted to discuss this and other pension annuity options with you.