Prudential Financial, Inc. announced collaborating with Fidelity Investments to address growing demand among consumers for a workplace retirement plan option that will convert participants' retirement savings into a protected stream of income. Prudential recently launched Prudential SimplyIncome -- a new single-premium immediate annuity, or SPIA -- within employer-based retirement plans administered by Fidelity Investments. Prudential is one of four insurers on Fidelity's Guaranteed Income Direct platform offering an embedded distribution option for defined contribution plans like 401(k)s, 403(b)s and 457(b)s. The SECURE Act of 2019 provided a "safe harbor" to make it easier for annuities to be included as options in employer-based retirement plans.

This prompted the financial services industry to expand in-plan income offerings to address consumers who are concerned that they'll outlive their retirement savings. The SECURE Act also required defined contribution plans to start showing workers the amount of lifetime income their account balances could generate in retirement. This new annual illustration requirement reframed the risk for plan sponsors beyond just customary investment metrics to bring more attention to longevity risk.