Why it earned this rating
Our assessment
FlexGuard Income pairs the FlexGuard RILA platform with a built-in GLWB for buyers who want index-linked growth alongside guaranteed lifetime income. The 1.45% rider fee is moderate, and the 6-year design matches typical RILA commitments.
The short version
FlexGuard Income works best for a buyer who wants index-linked growth potential both before and after income starts, accepts that income can fluctuate with market performance within buffer limits, and values the safety net of Insured Income Stage payments if account value ever reaches zero. What distinguishes it from peers is the five crediting strategy options available during accumulation, the Performance Lock feature, and the Prudential name behind the guarantee. What holds it back is the mandatory 1.45% annual benefit charge and the variable nature of income during retirement, which requires a higher risk tolerance than conventional income annuities.
Key facts
The full review
Is Prudential FlexGuard Income a Good Annuity?
For the right buyer, yes. FlexGuard Income is a well-constructed product for someone who wants to combine index-linked accumulation and retirement income in a single contract backed by Prudential's financial strength. It is not a good fit for buyers who want guaranteed-never-decreasing income, who need access to their money within the 6-year surrender period, or who live in CA, NY, or OR where the product is unavailable. I also think buyers who are primarily accumulation-focused should consider the accumulation-only FlexGuard variants — paying 1.45% for an income benefit you don't plan to use is an unnecessary drag.
Why Someone Would Buy This Annuity
The primary reason is to create retirement income that has a chance to grow after income starts — something a SPIA cannot do and traditional GLWBs do only in step-up form. The income here is dynamically recalculated each year based on actual index performance, meaning a strong S&P 500 year can meaningfully increase your annual distribution. The secondary reason is the three-stage safety net: if markets consistently underperform and account value eventually hits zero, payments continue for life at the last calculated Annual Income Amount. That is a meaningful backstop.
Who This Annuity Is Best For
I think this product is best for a buyer in their mid-to-late 50s or early 60s who plans to defer income for at least a few years, wants Prudential's name on the guarantee, and is comfortable thinking of their retirement income as variable within a range rather than fixed. It is less suitable for a buyer who is already retired and needs income to start immediately (there is a required waiting period of at least one year), or for someone who will be rattled by seeing their Annual Income Amount decrease after a bad index year.
What You're Really Buying Here
You are buying a registered index-linked annuity with a mandatory built-in lifetime income benefit. Unlike a traditional GLWB rider on an FIA, the income here is not calculated against a separate benefit base that only moves up — it is recalculated annually against your actual account value multiplied by your Income Percentage. That means your income can grow in good markets and decrease in bad ones (when losses exceed your buffer). If account value falls to zero, you move to the Insured Income Stage and receive a fixed payment for life equal to the last calculated Annual Income Amount.
How the Core Feature Works
During the Savings Stage, you allocate premium to one or more Index Crediting strategies — buffer-protected segments linked to indices like the S&P 500, MSCI EAFE, iShares Russell 2000, and others. Each segment credits index returns (subject to caps, participation rates, or other mechanics) at the end of its term. Meanwhile, your Income Percentage increases by a deferral credit each year you wait. When you are ready to start income, your initial Annual Income Amount is calculated as: current account value multiplied by (Income Percentage plus accumulated deferral credits). Once income begins, that amount is recalculated each index anniversary based on the index credit from your chosen crediting strategy. With a 10% buffer and a positive index year, income grows; with a 10% buffer and a -12% index year, income shrinks by 2%.
Why the Secondary Feature Matters
The Performance Lock feature is meaningfully useful during the Savings Stage. It lets you lock in mid-term index gains — either by setting an automatic target or by manually triggering a lock — before the index term ends. This is a hedge against giving back gains in a volatile market. Once locked, your segment no longer participates in further index movement (positive or negative) for the remainder of the term, and the locked value carries forward to the next index anniversary. It is not available on all strategies and should not substitute for proper asset allocation decisions, but for investors who tend to watch markets anxiously, it provides a concrete action they can take.
Liquidity and Surrender Schedule
The surrender charge is 8%, 8%, 7%, 6%, 5%, 4%, 0% over six contract years, assessed against the amount withdrawn from account value (not purchase payments). Free withdrawals of 10% of premium are available in year 1; 10% of prior-anniversary account value in subsequent years. Required Minimum Distributions calculated by Prudential are exempt from surrender charges. During the Income Stage, withdrawals up to the Annual Income Amount are not considered excess; amounts above that are Excess Income and proportionally reduce future Annual Income Amounts. If Excess Income withdrawals reduce account value to zero, the contract terminates (the Insured Income Stage only activates if depletion results from normal market losses, not voluntary over-withdrawal).
Fees and Tradeoffs
The annual benefit charge of 1.45% is the dominant cost. It is assessed against account value and deducted from index strategies, reducing effective growth. The M&E&A charge of 1.30% applies only to the variable subaccount (PSF PGIM Government Money Market Portfolio), which is used primarily as a holding account for unallocated funds. Most buyers allocating primarily to Index Crediting strategies will pay the 1.45% benefit charge and negligible M&E&A on any small money-market allocation. There is no contract fee, no annual admin fee layered on top. The return-of-premium death benefit is included at no additional cost. The benefit charge cannot be waived during the first three years; after year three, canceling the benefit stops the charge but also permanently eliminates the income feature.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Indexed Variable Annuity (RILA) |
| Issuer | Pruco Life Insurance Company |
| Issue Ages | 45-80 |
| Minimum Premium | $25,000 |
| Surrender Period | 6 years |
| Surrender Charges | 8%, 8%, 7%, 6%, 5%, 4%, 0% |
| Free Withdrawal | 10% of premium (year 1); 10% of account value (years 2+) |
| Income Benefit | Built-in (mandatory); cancelable after year 3 |
| Benefit Charge | 1.45% annually |
| M&E&A Charge | 1.30% (variable subaccount only) |
| Death Benefit | Return-of-premium, no additional cost |
| Buffers Available | 5%, 10%, 15%, 20%, 30%, 100% |
| Index Terms | 1-year, 3-year, 6-year (Savings Stage); 1-year only (Income Stage) |
| Key Indices | S&P 500, MSCI EAFE, iShares Russell 2000 ETF, Invesco QQQ ETF, AB 500 Plus Index, Dimensional International Equity Focus Index |
| MGSV | N/A |
| Not Available In | CA, NY, OR |
| Plan Types | IRA, NQ, Roth IRA, SEP IRA, Inherited NQ, Inherited IRA |
Carrier snapshot
Pruco Life Insurance Company is the direct issuer, a wholly-owned subsidiary of Prudential Financial. Ratings as of early 2025: A.M. Best A+ (Superior), S&P AA- (Very Strong), Fitch AA- (Very Strong), Moody's Aa3 (High Quality). Prudential Financial is one of the largest life insurance organizations in the U.S. and has been in business since 1875. These are among the strongest financial strength ratings in the industry and represent a meaningful backing for long-duration income guarantees. Pruco Life is responsible for its own financial obligations, but operates within Prudential's broader capital and risk management infrastructure.
Final take
FlexGuard Income is a genuinely thoughtful product — not a repackaged accumulation RILA with an income rider stapled on. The three-stage income framework is clearly designed around the reality that retirees need both growth potential and downside protection, and the Insured Income Stage backstop gives buyers real peace of mind about outliving assets. I think the 1.45% mandatory benefit charge is the product's biggest legitimate objection: it is the cost of entry regardless of when or whether you use the income feature, and it compounds over a potentially long deferral period. Buyers who are within five to ten years of retirement and plan to use the income feature will likely find the value-for-cost ratio compelling. Buyers with a longer time horizon or who are primarily seeking accumulation should consider whether the charge is worth carrying for years before income starts.