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Franklin Templeton is working with Prudential Financial to offer advisors a new tool for helping clients tap their retirement savings.
The asset manager has agreed to offer contingent deferred annuities from Prudential through its Canvas platform.
A contingent deferred annuity is a product that can pull lifetime income from an existing investment portfolio.
Franklin Templeton expects advisors to connect the CDA to clients' retail managed accounts.
What it means: Some clients could soon add income spigots to their investment accounts, instead of rolling assets from investment accounts into annuities.
Contingent deferred annuities: Insurers have been trying to develop CDA programs for more than decade, but the early programs were small and unsuccessful.
Prudential appears to be the first major insurer to offer a major CDA program.
Prudential has also been working with LPL Financial on CDA distribution.
FIDx: FIDx, an annuity exchange, has been developing an "insurance overlay" solutions market that includes the Prudential CDA.
Franklin Templeton is getting the CDAs for its platform through FIDx.
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