PREMIER RETIREMENT. Prudential

Transcription

1 Prudential PREMIER RETIREMENT Prudential Annuities and its distributors and representatives do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant. Issued by Pruco Life Insurance Company and by Pruco Life Insurance Company of New Jersey. This material must be preceded or accompanied by the current variable annuity product prospectus ED. 05/2017 Premier Retirement 1/20

2 2/20 Premier Retirement PREMIER

3 RETIREMENT Make a plan for your retirement What will you do during retirement? You might travel the world. Or turn a passion into a new business. Maybe you ll just want to relax and spend more time with your family. But whatever you choose to do, you ll need to develop a strategy to help you plan for the expected, and prepare for the unexpected challenges you may face in retirement. It s time to think about how you can efficiently manage your wealth today, and grow it for tomorrow. Your long-term investment goals may include saving for retirement, managing taxes and expenses, being better able to navigate the ups and downs of the markets, or providing for your loved ones. Put tax-smart investing to work for you With the Prudential Premier Retirement Variable Annuity you can put your money to work tax efficiently to help you plan for whatever you decide to do during retirement. Your financial advisor can work with you to create a tailored retirement plan to help you meet your goals. Together you can choose from a full range of investments, and discover how Premier Retirement can help you. tax efficiencies Take advantage of tax efficiencies such as tax-free reallocations and tax-deferred growth to boost any growth on your investments Delay paying taxes until you retire, when you could be in a lower tax bracket insightful investing Access to an investment platform that is built on a foundation of extensive research Invest in a full range of leading-edge and innovative investment strategies estate protection Help protect your loved ones with built-in legacy planning Provide efficient wealth transfer by avoiding the delay, cost, and publicity of probate Prudential Premier Retirement Variable Annuity is also offered with an optional living benefit. If you elect an optional living benefit, different investment options will be available to you and you may not have access to other features. Please see the prospectus or contact your financial advisor for more information. Premier Retirement 3/20

4 tax efficiencies Americans pay more in taxes than on food, clothing and housing combined. 1 And with a soaring national debt exceeding $19 trillion, there s a chance that income taxes and investment-related taxes will continue to rise. 2 In 2016, Americans total tax bill will have consumed 31% of their income up from 26.9% in Take advantage of tax-deferred growth With a taxable investment, part of your earnings including dividends, interest and capital gains, are taxed reducing your account value every year. But with Premier Retirement, you can defer taxes on your account growth until you begin taking income payments. That means more money stays invested and can grow faster than it would if it was in a taxable account. And for many investors, especially those in a higher tax bracket, a tax-deferred investment can significantly increase your retirement savings. The chart below shows how a tax-deferred investment can grow over time when compared to taxable investments. Taxes and time $1,000,000 ACCOUNT VALUE $750,000 $500,000 $250,000 Tax-deferred investment Taxable investment with a 25% annual tax rate Taxable investment with a 39.6% annual tax rate YEARS $967,421 ($788,066 after 25% tax) ($683,322 after 39.6% tax) $695,636 $571,308 growth rate YEARS TO DOUBLE tax deferred 25% annual tax rate 39.6% annual tax rate 7% A tax-deferred account growing at 7% net annually will double in about 10 years. A 39.6% taxable investment will take 17 years, or 70% longer. Assumptions: 7% Net annual growth for all hypothetical accounts. The taxable investments assume taxes are withdrawn at 25% and 39.6% at the end of every year. The tax-deferred account is subject to ordinary income tax upon distribution, which can substantially lower the final value of the account. The hypothetical example does not reflect a specific annuity, an actual account value or the performance of any investment. It does not include fees or portfolio expenses which would lower performance. 1 Tax Foundation: Tax Freedom Day 2015 is April 24, April 6, February /20 Premier Retirement

5 A33+33 A31+31 A33+33 Change your investment strategy without current tax consequences As your needs change, you may want to change your investment strategy. But when you make transfers between investments, a short- or long-term gain could occur, triggering a tax liability that would increase your annual tax burden and impact your account s growth. With a variable annuity like Premier Retirement, you can make strategic changes to your investment options without incurring current tax consequences. An equally allocated portfolio that accumulates from $500,000 to $550,000 and is then rebalanced in the short term would result in a $19,667 taxable event. If taxed at 25%, the cost of rebalancing would be $4,917. When the portfolio rebalances, it creates a $19,667 short-term capital gain. Assuming a 25% tax rate, the investor would owe $4,917 in taxes. $500,000 EQUALLY ALLOCATED PORTFOLIO 34+ $166,666 $166,666 $166,666 GROWS TO $550, $176,000 $203,000 $171,000 REBALANCES TO A $550,000 EQUALLY ALLOCATED PORTFOLIO 34+ $183,333 $183,333 $183,333 This is a hypothetical example for illustrative purposes only. It does not reflect a specific annuity, an actual account value or the performance of any investment. Please note that if you purchase this Annuity within a tax advantaged retirement plan, such as an IRA, SEP-IRA, Roth IRA, 401(a) plan, or non-erisa 403(b) plan, you will get no additional tax advantage through the Annuity itself. Because there is no additional tax advantage when a variable annuity is purchased through one of these plans, the reasons for purchasing the Annuity inside a qualified plan are limited to the ability to elect a living benefit, a Return of Purchase Payments Death Benefit, the opportunity to annuitize the contract and the various investment options, which might make the Annuity an appropriate investment for you. You should consult your tax and financial advisor regarding such features and benefits prior to purchasing this Annuity for use with a tax-qualified plan. Premier Retirement 5/20

6 investments to help grow your retirement A full range of portfolios from names you know and trust If you had to build an investment portfolio, where would you begin? Financial markets are complex. And with so many investment choices, it can be difficult to make a well-informed decision. The Premier Retirement platform offers a meaningful and manageable set of investment strategies to help you achieve your goals for growing your assets. Our exacting research process allows us to find best-in-class managers and portfolios that meet our high standards and yours. BOSTON ADVISORS 2017 BlackRock, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners. Pyramis and the Pyramis Global Advisors logo are service marks of FMR LLC. Used with permission. QMA is a wholly-owned subsidiary of PGIM, Inc. (formerly Prudential Investment Management Inc.) and an indirect, wholly-owned subsidiary of Prudential Financial, Inc. RCM is a trademark of Allianz Global Investors U.S. LLC. Logos of subaccount managers are subject to change. 6/20 Premier Retirement

7 The experts behind the platform At Prudential, we want you to feel confident about your investment choices. That s why we work closely with our Strategic Investment Research Group (SIRG) to carefully research portfolios across a wide range of asset classes, strategies and styles. Invest with an experienced team The SIRG team consists of 26 highly-experienced investment professionals, such as Chartered Financial Analysts, Chartered Alternative Investment Analysts, MBAs and Certified Investment Management Analysts. With almost $349 billion in assets under advisement, and over $47 billion in assets under management as of December 31, 2016, SIRG provides services to annuities, mutual funds, institutional separate accounts and wrap programs. Working relationships with over 200 asset management firms On average, over 15 years of experience identifying manager talent What are the right investments for you? At Prudential, we believe every investor is unique. To help you increase your wealth through changing market cycles, it s important to have access to an investment platform that offers a full range of strategies to help meet your individual needs and goals. conservative global investing income generation equity aggressive risk management WHAT S RIGHT FOR YOU? emerging markets unconstrained hedging international alternatives inflation protection bonds Premier Retirement 7/20

8 investment approaches to help reach your goals Work with your financial advisor to construct a portfolio to help reach your specific goals. You can invest in one or any combination of our Customized or Managed investment approaches. Customized the freedom to build it your way Our customized approach provides you with complete flexibility to build your own portfolio. Depending on the mix of investments you choose, including any of the Managed asset allocation portfolios, you may have further diversification and exposure to: Additional asset allocation strategies, asset classes and investment styles Investment management firms with varying specialties, and domestic and global market viewpoints A greater number of securities, industries, sectors and countries EQUITY LARGE-CAP GROWTH AST Jennison Large-Cap Growth* AST Loomis Sayles Large-Cap Growth* AST MFS Growth* AST T. Rowe Price Large-Cap Growth* LARGE-CAP BLEND AST AQR Large-Cap* AST ClearBridge Dividend Growth* AST QMA Large-Cap* LARGE-CAP VALUE AST Goldman Sachs Large-Cap Value* AST Hotchkis & Wiley Large-Cap Value* AST MFS Large-Cap Value* AST T. Rowe Price Large-Cap Value* MID-CAP GROWTH AST Goldman Sachs Mid-Cap Growth* MID-CAP VALUE AST Neuberger Berman / LSV Mid-Cap Value* AST WEDGE Capital Mid-Cap Value* SMALL-CAP GROWTH AST Small-Cap Growth* AST Small-Cap Growth Opportunities* SMALL-CAP VALUE AST Goldman Sachs Small-Cap Value* AST Small-Cap Value* INTERNATIONAL EQUITY DEVELOPED MARKETS AST International Growth* AST International Value* AST JP Morgan International Equity* AST MFS Global Equity* AST QMA International Core Equity* EMERGING MARKETS AST AQR Emerging Markets Equity* AST Parametric Emerging Markets Equity* FIXED INCOME DOMESTIC AST BlackRock/Loomis Sayles Bond* AST BlackRock Low Duration Bond* AST Government Money Market* AST Lord Abbett Core Fixed Income* AST Prudential Core Bond* AST Western Asset Core Plus Bond* HIGH YIELD AST High Yield* GLOBAL AST Goldman Sachs Global Income* AST Templeton Global Bond* EMERGING MARKETS AST Western Asset Emerging Markets Debt* NON-TRADITIONAL AST Goldman Sachs Strategic Income* ALTERNATIVES AST Cohen & Steers Realty* AST Global Real Estate* AST Jennison Global Infrastructure AST T. Rowe Price Natural Resources* ASSET ALLOCATION AST Advanced Strategies* AST Balanced Asset Allocation* AST BlackRock Global Strategies* AST BlackRock Multi-Asset Income AST Capital Growth Asset Allocation* AST FI Pyramis Quantitative Portfolio* AST Goldman Sachs Global Growth Allocation* AST Goldman Sachs Multi-Asset* AST Legg Mason Diversified Growth* AST Managed Equity* AST Managed Fixed Income* AST New Discovery Asset Allocation* AST Preservation Asset Allocation* AST Prudential Growth Allocation* AST RCM World Trends* AST T. Rowe Price Asset Allocation* AST T. Rowe Price Diversified Real Growth AST T. Rowe Price Growth Opportunities* JPMorgan Insurance Trust Income Builder * These subaccounts are subject to or invest in underlying Portfolios (or invest in other Portfolios) that are subject to a predetermined mathematical formula applicable to benefits that are not available with this annuity. Before you allocate to these subaccounts, you should consider the impact the formula will have on each Portfolio s risk profile, expenses and performance. See page 16 (Asset Transfer Program Risk) and the prospectus for additional information. 8/20 Premier Retirement

9 Managed portfolios we ve built for you Premier Retirement provides you with a variety of exclusive investment strategies. Through extensive research and analysis, we developed fully-constructed asset allocation portfolios designed to help you successfully navigate market cycles and strategically allocate your investment assets. These asset allocation portfolios may use tactical, unconstrained and alternative strategies to help protect against market volatility, inflation and other investor concerns, while also seeking to take advantage of global market opportunities. AST MANAGED EQUITY PORTFOLIO 100% Equities Overview: A global equity portfolio seeking to outperform the MSCI All-Country World Index. Strategy: Uses high conviction portfolios to tactically over- and under-weight asset classes, regions, styles and capitalization levels. Investor Profile: Investors seeking aggressive growth opportunities and/or those looking to fulfill their equity allocation. AST MANAGED FIXED INCOME PORTFOLIO 100% Fixed Income Overview: A fixed income portfolio seeking to outperform the Bloomberg Barclays U.S. Aggregate Bond Index. Strategy: Uses high conviction portfolios to tactically over- and under-weight asset classes, regions, and sectors. Investor Profile: Investors looking for total return through fixed income and/or those looking to offset equity positions. Themed portfolios to help you take advantage of market opportunities The unconstrained and tactical nature of some of these portfolios allow for the fund managers to be more aggressive or conservative as the markets demand without taking on undue risk. AST T. ROWE PRICE DIVERSIFIED REAL GROWTH PORTFOLIO THEME: GROWTH WITH INFLATION PROTECTION 60-90% Equities 10-40% Fixed Income 5-25% Alternatives Overview: Seeks to provide growth, while also aiming to protect long-term purchasing power. Strategy: Invests in global securities with a dedicated allocation to sectors, including real assets and Treasury Inflation-Protected Securities (TIPS), that typically perform well in inflationary markets. Investor Profile: Growth-oriented investors who are concerned about rising inflation. JPMORGAN INSURANCE TRUST INCOME BUILDER THEME: INCOME GENERATION 0-60% Equities 0-100% Fixed Income 0-40% Alternatives Overview: Seeks to maximize income while maintaining prospects for capital appreciation. Strategy: Invests globally across traditional and opportunistic asset classes to deliver strong risk-adjusted income. Investor Profile: Investors seeking consistent high income from a diverse source of investments. AST GOLDMAN SACHS GLOBAL GROWTH ALLOCATION PORTFOLIO THEME: GLOBAL INVESTING 50-90% Equities 10-50% Fixed Income 0-30% Alternatives Overview: A growth-oriented global portfolio. Strategy: Uses tactical allocation to find growth and income opportunities in developed, emerging and frontier markets. Investor Profile: Investors looking for global growth opportunities in today s evolving world. AST BLACKROCK MULTI-ASSET INCOME PORTFOLIO THEME: INCOME GENERATION 15-30% Equities 30-60% Fixed Income 15-40% Alternatives Overview: A one-stop-shop solution seeking to deliver a strong combination of yield, risk management and total return. Strategy: Invests globally using both traditional (e.g., bonds and dividends) and non-traditional (e.g., REITs) income sources to balance yield and risk. Investor Profile: Investors looking for alternative and diverse income options. Premier Retirement 9/20

10 Striking a balance between risk and return Our investment platform provides you with the choice and flexibility to help meet your specific goals and risk tolerance. This can help you strike the appropriate balance between risk and return. For instance, if you choose a more income-oriented objective, your portfolio is designed to generate more income and experience less price volatility than a more growth-oriented portfolio. However, you give up some return potential and inflation protection. PORTFOLIOS Aggressive Growth Growth and Income AST AQR Emerging Markets Equity Portfolio AST Parametric Emerging Markets Equity AST T. Rowe Price Natural Resources Portfolio AST Goldman Sachs Global Growth Allocation Portfolio AST Goldman Sachs Mid-Cap Growth Portfolio AST Goldman Sachs Small-Cap Value Portfolio AST Jennison Global Infrastructure Portfolio AST Managed Equity Portfolio AST Neuberger Berman/LSV Mid-Cap Value Portfolio AST Small-Cap Growth Portfolio AST Small-Cap Value Portfolio AST Small-Cap Growth Opportunities Portfolio AST T. Rowe Price Diversified Real Growth Portfolio AST WEDGE Capital Mid-Cap Value Portfolio AST Advanced Strategies Portfolio AST AQR Large-Cap Portfolio AST Balanced Asset Allocation Portfolio* AST BlackRock Global Strategies Portfolio AST BlackRock Multi-Asset Income Portfolio AST Capital Growth Asset Allocation Portfolio* AST ClearBridge Dividend Growth Portfolio AST Cohen & Steers Realty Portfolio AST FI Pyramis Quantitative Portfolio* AST Global Real Estate AST Goldman Sachs Large-Cap Value Portfolio AST Goldman Sachs Multi-Asset Portfolio AST Hotchkis & Wiley Large-Cap Value Portfolio AST International Growth Portfolio AST International Value Portfolio AST JP Morgan International Equity Portfolio The portfolio classifications displayed above are those of Edward Jones and not of Prudential Annuities and are subject to change at any time. * These asset allocation portfolios use a liquidity strategy involving investments ranging from 5% to 12% of the portfolio in derivatives (e.g., futures and options) and in short-term money market instruments. (Ask your financial advisor for a fund prospectus for additional information concerning derivatives.) 10/20 Premier Retirement

11 On the other hand, the more growth-oriented portfolios are designed to offer more return opportunity and inflation protection, but be more volatile in price. That means the price and value of your investment will change more often, and you ll receive less current income. The key to selecting a portfolio objective is striking the right balance between risk and return for you. Income AST Jennison Large-Cap Growth Portfolio AST Legg Mason Diversified Growth Portfolio* AST Loomis Sayles Large-Cap Growth Portfolio AST MFS Global Equity Portfolio AST MFS Growth Portfolio AST MFS Large-Cap Value Portfolio AST New Discovery Asset Allocation Portfolio* AST Preservation Asset Allocation Portfolio* AST Prudential Growth Allocation Portfolio* AST QMA International Core Equity Portfolio AST QMA Large-Cap Portfolio AST RCM World Trends Portfolio AST T. Rowe Price Asset Allocation Portfolio* AST T. Rowe Price Growth Opportunities Portfolio* AST T. Rowe Price Large-Cap Growth Portfolio AST T. Rowe Price Large-Cap Value Portfolio AST BlackRock/Loomis Sayles Bond Portfolio AST BlackRock Low Duration Bond Portfolio AST Goldman Sachs Global Income Portfolio AST Goldman Sachs Strategic Income Portfolio AST Government Money Market Portfolio AST High Yield Portfolio AST Lord Abbett Core Fixed Income Portfolio AST Managed Fixed Income Portfolio AST Prudential Core Bond Portfolio AST Templeton Global Bond Portfolio AST Western Asset Core Plus Bond Portfolio AST Western Asset Emerging Markets Debt Portfolio JPMorgan Insurance Trust Income Builder Aggressive Growth Growth and Income Income Cash and Cash Alternatives Premier Retirement 11/20

12 easy access to your money There are several ways you can receive payments from Premier Retirement, if you choose to take withdrawals. Your financial advisor can work with you to help you choose an option that best meets your needs. Systematic withdrawals You can receive payments from your annuity without annuitizing your contract through systematic withdrawals, and receive a specific amount on an automated basis at the frequency you select monthly, quarterly, semi-annually or annually. Partial and lump-sum withdrawals At any time, you may make a partial or full surrender of your annuity s account value. You should note that any withdrawals will affect your account value and the assets allocated to your investments. Also, any withdrawals taken during the surrender period are subject to a Contingent Deferred Sales Charge (CDSC). Turn your annuity investment into income When you feel the time is right to start receiving guaranteed income from your Premier Retirement variable annuity, you can annuitize your contract. You select the type of income payment that s best for you, including payments for a period certain or payments for life with a period certain, and can receive your income payments on a monthly, quarterly, semi-annual or annual basis. Protect your loved ones Built-in legacy planning Perhaps leaving your loved ones with more promise for the future is part of your retirement plans. If you pass away before you annuitize, a death benefit will be paid to your beneficiaries. The death benefit is the greater of: The sum of all money invested, adjusted proportionally for withdrawals OR The account value 12/20 Premier Retirement

13 Prudential Annuities Work with a partner you know and trust Prudential Annuities is a business of Prudential Financial, a leader in retirement solutions. We ve been meeting financial challenges with innovative products and strategies to help individuals and institutions reach their financial goals for over 140 years. We comprise several insurance companies. Some of those companies are authorized to issue variable annuity contracts in the United States, namely Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey.* We built our reputation by being steadfastly committed to: Insight that drives innovation: Our ongoing analysis of industry trends and deep-rooted knowledge of the financial markets help us deliver leading-edge products and services that help our clients meet their retirement income needs and goals A comprehensive approach to risk management: We are dedicated to maintaining a business model that is financially sound by incorporating risk-reduction strategies that help us better manage our business and your retirement investment through all market conditions Sustaining financial strength: The issuing companies of Prudential Annuities are rated by the major independent ratings agencies and are committed to maintaining their financial strength on behalf of our clients and key business stakeholders * The issuing companies of Prudential Annuities are each solely responsible for their ability to meet their financial obligations. A.M. BEST COMPANY FITCH RATINGS STANDARD & POOR S MOODY S A+ AA- AA- A1 (2nd category of 16) Superior ability to meet ongoing obligations to policyholders (4th category of 19) (4th category of 23) Very strong capacity to meet policyholder Very strong financial and contract obligations security characteristics (5th category of 21) Good financial security Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey (in New York) are members of the Prudential Financial family of companies and are the issuers of variable annuities. Each is solely responsible for its own financial obligations. All are highly rated by the major independent rating agencies for their ability to meet financial obligations. Pruco Life Insurance Company of New Jersey is not rated by Moody s. All ratings are as of February 8, Ratings are intended to reflect the financial strength or claims-paying ability of the issuer and are not intended to reflect the investment performance or financial strength of the variable accounts, which are subject to market risk. The above ratings are subject to change and do not reflect any subsequent rating agency actions. We make every effort to update our literature as soon as possible after a ratings change. Please visit our investor relations site, www. investor.prudential.com, for the most current ratings information. Premier Retirement 13/20

14 Premier Retirement at a glance Features Minimum purchase payments The ability to make subsequent purchase payments may vary. Subsequent purchase payments will not be accepted on or after the later of the 81st birthday of the oldest of all owners and annuitant or the first anniversary of the issue date Maximum issue age May vary by state Latest annuity date Free withdrawal Medically related surrenders Availability is subject to state approval and the provisions of the annuity Annuitization options Minimum monthly annuity payment is $100 ($20 in NY) except where a lower amount is required by law Investment options Asset allocation does not ensure a profit or protect against a loss Specifications Initial: $10,000 Subsequent: $100* 80 Contracts may not be issued on or after the 81st birthday of the oldest of all owners and annuitant No later than the first day of the calendar month following the 95th birthday of the oldest of all owners or annuitant, whichever comes first Up to 10% of each purchase payment (non-cumulative) per annuity year without a Contingent Deferred Sales Charge (CDSC) Full or partial surrenders are available without a CDSC if the owner (annuitant, if entity owned) becomes terminally ill or is confined to an eligible medical care facility for at least 90 consecutive days When the time comes to start receiving income from your annuity, you may select a payment schedule to meet your requirements, including: Payments for a period certain Payments for life with a period certain Choose one of our asset allocation portfolios for built-in diversification Combine any of our asset allocation / single asset class portfolios *Prudential Annuities reserves the right to limit, restrict, suspend, or reject additional purchase payments at any time on a non-discriminatory basis. 14/20 Premier Retirement

15 Fees and Charges Total Annual Insurance Charge Applied as a percentage of the daily net assets of the variable subaccounts Annual Maintenance Fee Waived if the sum of all purchase payment totals $50,000 or more Premium Based Charge Payment-based; assessed quarterly for each purchase payment beginning on the first Quarterly Annuity Anniversary after the purchase payment is allocated to the annuity and continuing for seven years Contingent Deferred Sales Charge You may withdraw, without a CDSC, up to 10% of each purchase payment (noncumulative) per annuity year. This is generally referred to as a free withdrawal. Free withdrawals are not available if you fully surrender the annuity. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Withdrawals can reduce the account value and the living and death benefits. TOTAL PURCHASE PAYMENT AMOUNT 0.85% in all years Lesser of $50 per year or 2% of the account value QUARTERLY PREMIUM BASED CHARGE ANNUAL EQUIVALENT PREMIUM BASED CHARGE Less than $50, % 0.70% $50,000 - $99, % 0.60% $100,000 - $249, % 0.50% $250,000 - $499, % 0.35% $500,000 - $999, % 0.25% $1,000,000 or more % 0.15% Each purchase payment is assigned on the date it is allocated to the annuity, based on the total purchase payments received. Prior to the first Quarterly Annuity Anniversary, all purchase payments are aggregated for purposes of determining the first Premium Based Charge If an additional purchase payment causes the cumulative total purchase payments in the contract to cross a breakpoint, the next charge tier is applied to that entire additional purchase payment TOTAL PURCHASE PAYMENT AMOUNT Less than 1 AGE OF PURCHASE PAYMENT BEING WITHDRAWN (IN YEARS) 1 or more but less than 2 2 or more but less than 3 3 or more but less than 4 4 or more but less than 5 5 or more but less than 6 6 or more but less than 7 Less than $50,000 5% 5% 4% 4% 3% 3% 2% 0% $50,000 - $99,999 5% 4% 4% 3% 3% 2% 2% 0% $100,000 - $249,999 4% 3% 3% 2% 2% 2% 1% 0% $250,000 - $499,999 3% 2% 2% 2% 1% 1% 1% 0% $500,000 - $999,999 2% 2% 2% 1% 1% 1% 1% 0% $1,000,000 or more 2% 2% 1% 1% 1% 1% 1% 0% Each purchase payment is assigned its own Contingent Deferred Sales Charge (CDSC) based on the table above The CDSC applicable to each purchase payment is based on the total of all purchase payments allocated to the annuity, including the amount of the new purchase payment If an additional purchase payment causes the cumulative total purchase payments in the contract to cross a breakpoint, that entire additional purchase payment is subject to the next charge tier Assessed on any withdrawals during the first seven years after each purchase payment is made Please refer to the Summary of Contract Fees and Charges section of the prospectus for more details. 7 or more Premier Retirement 15/20

16 important information Investments in the portfolios are not bank deposits and are not guaranteed. Investors may lose money by investing in a portfolio. Our portfolios may involve exposure to: Alternative Investments Risk Alternative investments may use leverage, short sales, derivatives, or engage in other speculative practices. These practices include a high degree of risk and may increase the size and velocity of investment losses. The fees and expenses associated with alternative investments are generally higher than those for traditional investments. Asset Transfer Program Risk Premier Retirement offers certain subaccounts that invest in underlying Portfolios (or invest in other Portfolios) which are also available in other variable annuity contracts we offer. Those other variable annuity contracts offer certain optional living benefits that utilize a predetermined mathematical formula (the formula ) to manage the guarantees offered in connection with those optional benefits. You should be aware that the operation of the formula in those other variable annuity contracts may result in largescale asset flows into and out of the underlying Portfolios through a series of transfers. In addition to increasing the Portfolios expenses, the asset flows may adversely affect performance by (i) requiring the Portfolios to purchase or sell securities at inopportune times; (ii) otherwise limiting the subadvisor s ability to fully implement the Portfolios investment strategies; or (iii) requiring the Portfolios to hold a larger portion of their assets in highly liquid securities than they otherwise would hold. Before you allocate to these subaccounts, you should consider the impact the formula will have on each Portfolio s risk profile, expenses and performance. Please see the prospectus for more information and work with your financial professional to determine which Portfolios are appropriate for you. Commodities Risk Commodities may experience more volatility than investments in traditional securities due to changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as weather conditions, livestock disease, embargoes, tariffs, acts of terrorism, and international economic, political and regulatory developments. Derivatives Risk A derivative is a financial contract, the value of which is derived from the value of an underlying asset, reference rate, or index. The use of derivatives involves risks, which include: 1) increased volatility; 2) the counterparty on a derivative transaction may be unable to honor its financial obligation to a portfolio; 3) the possibility that losses could exceed the amount invested in the derivative instrument. Hedging may reduce losses, but may also reduce or eliminate gains or cause losses if the market or relevant indices move differently than anticipated. Equity Securities Risk The value or price of a particular stock or other equity or equity-related security owned by a portfolio could go down and you could lose money. Exchange-Traded Funds (ETFs) Risk The investment return and principal value of ETF investments will fluctuate over time. ETFs that offer leverage or that are designed to perform inversely to the index or benchmark they track (or both) are complex and are typically designed to achieve their objectives on a daily basis. Due to the effects of compounding, their performance over longer periods of time can differ significantly from the performance (or inverse of the performance) of the underlying index or benchmark. Fixed-Income Securities Risk 1) Credit Risk: an issuer or guarantor of a security may be unable to pay some or all of the principal and interest when due; 2) Liquidity Risk: the portfolio may not be able to sell some or all of the securities it holds; 3) Interest Rate Risk: If market interest rates fall, the interest income generated will also fall. If market interest rates rise, the market prices of the fixed-income investments may decline. Fund of Funds Risk In addition to the risks associated with the investment in the underlying portfolios, the Portfolio is exposed to the investment objectives, risks, and performance of the underlying portfolios. In addition, there may be conflicts of interest between the Portfolio and its advisor and subadvisor(s). Growth Style Risk The growth investment style may be out of favor for a period of time. Additionally, share prices may decline significantly if earnings do not increase at the rate expected by investors. High-Yield Securities (Junk Bonds) Risk High-yield securities are considered predominantly speculative with respect to the issuer s continuing ability to make principal and interest payments, and may be subject to greater levels of credit and liquidity risk. International Equity/Debt Risk International equity and debt securities may be adversely affected by: changes in currency exchange rates; differing regulatory and taxation requirements; alternative financial reporting standards, including less publicly available information; and political, social and economic changes. International markets, and in particular Emerging Markets (EM), are generally more volatile than U.S. markets. 16/20 Premier Retirement

17 Market and Management Risk Markets may experience volatility and go down in value, possibly sharply and unpredictably. 1) Market Risk: Certain measures may be taken by U.S. and foreign governments, the Federal Reserve, and other domestic and foreign governmental or financial entities in order to support financial markets. The withdrawal of such measures could negatively affect the value and liquidity of certain securities and/or the overall economy. 2) Management Risk: The risk analysis and investment techniques and strategies used by a subadvisor in making investment decisions may not produce the desired results. Non-Diversification Risk The Portfolio may hold a larger position in a single issuer than a diversified portfolio. As a result, the Portfolio s performance may be more adversely affected by relatively few securities or issuers. Quantitative Model Risk Securities or other investments selected using quantitative methods may perform differently from the market as a whole or from their expected performance for many reasons, including factors used in building the quantitative analytical framework, the weights placed on each factor, and changing sources of market returns. Regulatory Risk A change in laws and regulations may materially impact a portfolio, a security, business, sector or market. Similarly, the businesses and other issuers of the securities and other instruments in which the portfolios invest are also subject to considerable regulation. These laws and regulations are subject to change. Real Estate Investment Trusts (REITs) Risk REITs involve risks such as refinancing, economic conditions in the real estate industry, changes in property values, dependency on real estate management, and other risks associated with the concentration of investments in one sector or geographic region. Sector Risk Certain portfolios may invest in certain economic sectors, thereby increasing their vulnerability to any single economic, political, or regulatory development. Short Sales Risk The primary risk associated with the use of short sales is the risk of loss if the price of the borrowed security increases between the date of the short sale and the date on which the portfolio replaces the borrowed security. Small- and Mid-Cap Equity Securities Risk Investments in the shares of small and mid-sized companies may be more volatile than investments in larger companies. U.S. Treasury Inflation-Protected Securities (TIPS) Risk TIPS are debt securities issued by the U.S. Government whose principal value is periodically adjusted according to the rate of inflation. When the principal value is adjusted downward, interest payable will be reduced. Inflation-indexed securities, including TIPS, decline in value when real interest rates rise. Value Style Risk The value investment style may be out of favor for a period of time, the market may not recognize a security s intrinsic value, or a stock judged to be undervalued may actually be appropriately priced. Definitions of indices Please note that it is not possible to invest directly in an index. Bloomberg Barclays U.S. Aggregate Bond Index covers the U.S.D-denominated, investment grade, fixed rate, taxable bond market of SECregistered securities. The index includes bonds from the Treasury, Government-Related, Corporate, Mortgage-Backed Security (MBS), Asset- Backed Security (ABS) and Commercial Mortgage-Backed Security (CMBS) sectors. MSCI All-Country World Index (ACWI) is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance of developed and emerging markets. It consists of 45 country indices comprising 24 developed and 21 emerging market country indices. S&P 500 Index is a market capitalization-weighted index of the 500 widely held stocks often used as a proxy for the stock market. S&P chooses the member companies for the 500 based on market size, liquidity and industry group representation. Premier Retirement 17/20

18 notes 18/20 Premier Retirement

19 Premier Retirement 19/20

20 Investors should consider the features of the contract and the underlying portfolios investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectus, which can be obtained from your financial professional. Please read the prospectus carefully before investing. Issuing companies are located in Newark, NJ (main office). Variable annuities are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Prudential Annuities is a business of Prudential Financial, Inc. This material is for informational or educational purposes only. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In providing these materials, Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey and the distributor listed above are not acting as your fiduciary as defined by any applicable laws and regulations. Annuity contracts contain exclusions, limitations and terms for keeping them in force. Your licensed financial professional can provide you with complete details. Your needs and suitability of annuity products should be carefully considered before investing. A variable annuity is a long-term investment designed for retirement purposes. Investment returns and the principal value of an investment will fluctuate so that an investor s units, when redeemed, may be worth more or less than the original investment. Withdrawals or surrenders may be subject to contingent deferred sales charges. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty, sometimes referred to as an additional income tax. Withdrawals reduce the account value and death benefits. All guarantees are backed by the claims-paying ability of the issuing company and do not apply to the underlying investment options. All products and benefits may not be available in all states or through all third-party broker/dealers. The Prudential Premier Retirement Variable Annuity offered by Prudential Financial companies is available at a total annual insurance cost of 0.85%, with an additional fee related to the professionally managed investment options. Diversification does not ensure against loss in a declining market. Asset allocation does not ensure a profit or protect against a loss Prudential Financial, Inc. and its related entities. Prudential Annuities, Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Issued on contracts: P-O/IND(5/11), et al. or state variation thereof one corporate drive shelton, connecticut / ORD ED. 05/2017 [REF# Edward Jones]