M&G is entering the fixed term annuity market with the Prudential Guaranteed Income Plan, powered by its £129bn With-Profits Fund.
M&G’s new retirement solution provides certainty for customers wanting a guaranteed income for a fixed term between five to 15 years, with a minimum lumpsum investment of £10,000. In addition to guaranteed returns that aim to be competitive compared to conventional fixed term annuities, there is the added benefit that if investment conditions are better than expected, customers will receive a modest bonus on top of their guaranteed income.
This is made possible due to the unique structure of the With-Profits Fund, its scale and capital strength as well as the ability to invest across asset classes, including private markets, in many cases utilising the investment expertise within the Group’s wider asset management business.
By entering the fixed term annuity market, M&G is expanding its offer for advisers who will have greater access to a blended product suite to create tailored retirement income solutions for clients. Available as a trustee investment within Self-Invested Personal Pension schemes (SIPP), the Prudential Guaranteed Income Plan enables advisers to blend a guaranteed income solution with growth assets, such as PruFund, in a bespoke pension portfolio designed to meet an individual customer’s needs.
M&G is soft-launching the product with a small number of advisers before making it widely available in the UK retail market in the second half of 2025.
Anusha Mittal, managing director, Individual Life and Pensions, at M&G, said: “The launch of our new insurance product in the UK retail market shows how M&G is expanding its suite of blended retirement solutions. We are responding to customers who are seeking peace of mind, knowing that, no matter what the markets do, their income won’t change.
“They are looking for flexibility and security so that they may maintain their lifestyles, pursue hobbies or perhaps reduce working hours, without having to commit to an annuity for life, thereby keeping future financial planning options open to them.
“The Prudential Guaranteed Income Plan is powered by our 177-year-old With-Profits Fund, of which PruFund is a part. It will provide advisers with the opportunity to offer a blend of PruFund for growth and more discretionary income needs alongside Prudential Guaranteed Income Plan for more essential income needs. Blending products in this way is increasingly important in creating tailored retirement solutions for customers’ specific needs and risk preferences.”
