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Prudential Defined Income Variable Annuity Review: Fees, Income Benefit and Owner Options (2026)
Written & reviewed by Hans Goldstein, independent licensed insurance producer · CA license 4273294 · NPN 20602398Facts verified against the Prudential Defined Income prospectus (May 1, 2026, SEC EDGAR) and Prudential’s legacy products page on October 4, 2026 · Updated
Prudential Defined Income is a variable annuity, not a fixed indexed annuity, issued by Pruco Life Insurance Company (AM Best A+, per Prudential’s ratings page as of August 4, 2026). It pairs a lifetime Guaranteed Income Amount with an account invested in the AST Multi-Sector Fixed Income Portfolio. Per the May 1, 2026 prospectus it costs a 1.90% insurance charge plus a 0.72% portfolio expense, has a 7-year CDSC, and is no longer offered for new sales.
Correction (October 4, 2026): an earlier version of this page was titled “Prudential Defined Income FIA Review (2026): Income Rider FIA”. Prudential Defined Income is a variable annuity, not an FIA. This page now reviews the Prudential Defined Income Variable Annuity from its prospectus dated May 1, 2026 (SEC EDGAR). We also updated the portfolio expense from 0.74% to the prospectus figure of 0.72%, and corrected the issuer note: this annuity is issued by Pruco Life Insurance Company, not Fortitude Life Insurance & Annuity Company.
Prudential Defined Income specs
| Feature | Prudential Defined Income Variable Annuity |
|---|---|
| Issuer | Pruco Life Insurance Company (Pruco Life Flexible Premium Variable Annuity Account) |
| Product type | Flexible premium deferred variable annuity with a built-in lifetime income benefit (Defined Income Benefit) |
| Investment | AST Multi-Sector Fixed Income Portfolio, the only investment option (in California, AST Government Money Market is used only during the free look) |
| Status | No longer offered for new sales; Defined Income Benefit not available for election or re-election since January 1, 2021 |
| Minimum purchase (when sold) | $25,000 initial; $100 subsequent |
| Issue ages (when sold) | 45 to 85; broker-dealers could set a lower maximum |
| Surrender charge (CDSC) | Per purchase payment: 7%, 7%, 6%, 6%, 5%, 5%, 5%, then 0%; waived for GIA payments and RMDs (Prudential) |
| Death benefit | Greater of account value or purchase payments reduced for withdrawals; ends at annuitization or if account value reaches zero |
| Latest annuity date | First of the month after the 95th birthday of the oldest owner or annuitant (Prudential) |
| Other charges | Transfer fee up to $10 only if two or more investment options are ever offered; up to $50 per extra report copy (not currently assessed) |
Fees: current and maximum
| Charge | Current | Maximum |
|---|---|---|
| Insurance charge (mortality and expense, administration, and Defined Income Benefit) | 1.90% a year | 2.60% a year |
| of which: Defined Income Benefit charge | 0.80% a year | 1.50% a year, may be raised on or after the 7th contract anniversary with notice |
| AST Multi-Sector Fixed Income Portfolio expense | 0.72% a year | Portfolio range 0.58% to 0.75% |
| Annual maintenance fee | Lesser of $50 or 2% of account value, only if purchase payments total under $100,000 | Same |
| Prospectus annual cost estimate, $100,000 at 5% | $1,718 lowest to $3,419 highest |
Is the annuity you're looking at the right fit for you?
Send your email and I'll send what it really guarantees, what the surrender schedule costs you, and the two or three carriers paying more for the same guarantee. If it's already a good fit, I'll tell you that.
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How the Defined Income Benefit works
Guaranteed Income Amount (GIA). Each purchase payment is multiplied by an age-based Income Percentage to set its GIA, single or spousal. Under the Income Later approach, the GIA then grows by the Income Growth Rate, an annual effective rate compounded daily, until your first Lifetime Withdrawal. The Income Percentage and Income Growth Rate were set when you bought and do not change for the life of the annuity.
Withdrawals. Lifetime withdrawals up to the GIA are not subject to the CDSC. Non-lifetime withdrawals can only be taken before lifetime withdrawals start, are subject to the CDSC, and reduce all benefit guarantees by the percentage of account value withdrawn. If the account value reaches zero through withdrawals within the GIA, Pruco Life continues the lifetime payments; a withdrawal of Excess Income that brings the account value to zero ends the benefit and the annuity. Every guarantee here is backed by the claims-paying ability of Pruco Life Insurance Company.
| Age at purchase payment | Single Income Percentage | Spousal Income Percentage |
|---|---|---|
| 55 | 3.05% | 2.55% |
| 60 | 3.90% | 3.40% |
| 65 | 4.60% | 4.10% |
| 70 | 4.80% | 4.30% |
| 75 | 5.15% | 4.65% |
| 85+ | 5.90% | 5.40% |
The Income Growth Rate for that same December 15, 2020 rate set was 4.00%, compounded daily until the first Lifetime Withdrawal.
Who issued your contract?
The May 1, 2026 prospectus names Pruco Life Insurance Company as issuer. A separate New York version was issued by Pruco Life Insurance Company of New Jersey (its prospectus dated May 1, 2024 is on SEC EDGAR). Prudential Annuities Life Assurance Corporation, now Fortitude Life Insurance & Annuity Company (FLIAC), is a former affiliate named in the prospectus only in its distribution section. Check the issuer on your annual statement; it determines whose claims-paying ability backs your guarantees.
Defined Income vs FlexGuard vs fixed annuities
| Prudential Defined Income | Prudential FlexGuard | MYGA | SPIA | |
|---|---|---|---|---|
| Type | Variable annuity | Registered index-linked annuity (RILA) | Fixed annuity | Immediate income annuity |
| Can the account value fall? | Yes (bond portfolio) | Yes, beyond the buffer | No | No account value; income only |
| Ongoing charges | About 2.62% a year (1.90% + 0.72%) | See review | None explicit; rate is net | None explicit; built into payout |
| Lifetime income | Yes, GIA | See review | No (term product) | Yes |
| Open to new buyers | No | See review | Varies by carrier | Varies by carrier |
See the Prudential FlexGuard RILA review for the buffered product and fixed vs variable annuity for the basics.
Already own Prudential Defined Income? Your three options
- Keep it and take income. If your GIA is large relative to your account value, the lifetime income may be the most valuable thing you own. The roughly 2.62% combined annual cost matters less once you are drawing income.
- Stop paying for a benefit you will not use. Hypothetical: on a $250,000 account value, 1.90% + 0.72% is about $6,550 a year to hold one bond portfolio. A MYGA carries no explicit annual charge; its rate is stated net.
- 1035 exchange to a fixed annuity. A direct exchange under IRC Section 1035 can move the account value into a MYGA (for accumulation) or a SPIA (for income) without current tax. You give up the GIA and pay any remaining CDSC, so the comparison is your GIA versus what the fixed annuity pays on your account value.
For comparison, A-rated-or-better insurers were paying about 5.80% to 6.00% on 5-year MYGAs and the best nationally available 5-year CDs about 4.35% to 4.50% APY on September 24, 2026 (AnnuityRateWatch carrier data; DepositAccounts). Current rates: MYGA rates.
Compliance note: I am a licensed insurance producer, not a securities representative, and I don’t give advice on variable annuity subaccounts. What I can do is quote what a MYGA or SPIA would pay on your account value, so you can compare it with the GIA on your statement.
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | A | Pruco Life Insurance Company: AM Best A+ (Prudential Financial ratings page, as of August 4, 2026). |
| Rate or cap competitiveness | Not applicable | Closed to new sales; no declared rate or cap. The account earns whatever the bond portfolio returns (1-year 6.61%, 5-year -1.62% a year, as of December 31, 2025). |
| Guaranteed floor | B | Lifetime GIA set at purchase, plus a death benefit of at least purchase payments less withdrawals. No floor on account value. |
| Liquidity | C | 7-year CDSC from 7% per payment; non-lifetime withdrawals reduce all guarantees proportionally. |
| Costs | C- | 1.90% insurance charge plus 0.72% portfolio expense; the benefit charge can rise to 1.50% (total 2.60%) after year 7. |
| Transparency | A | Annual prospectus on SEC EDGAR with fee table, current portfolio expense and historical income rates. |
| Overall | B- | Weighted toward costs, liquidity and the guaranteed floor, as of October 4, 2026. |
Pros and cons
Pros
- Lifetime income amount fixed at purchase and, before the first lifetime withdrawal, grown at the contract’s Income Growth Rate.
- Lifetime withdrawals up to the GIA are free of the CDSC.
- Issuer rated A+ by AM Best (as of August 4, 2026).
- Death benefit of at least purchase payments less withdrawals.
Cons
- About 2.62% a year in combined charges, for a single bond portfolio.
- The benefit charge can rise to 1.50% after the 7th anniversary.
- Account value can fall; the portfolio returned -1.62% a year over the 5 years to December 31, 2025.
- Closed to new sales, and the benefit cannot be re-elected if dropped.
- Gains come out as ordinary income; withdrawals before 59½ may carry a 10% additional tax.
Who it’s for, and when to look elsewhere
Fits: existing owners who are taking, or plan to take, lifetime withdrawals and whose GIA is high relative to their account value. For them the income benefit is what the 1.90% charge pays for.
Look elsewhere if: you will never take lifetime withdrawals, or you mainly want a known rate. A MYGA locks a declared rate for the term with no market exposure, backed by the claims-paying ability of the issuing insurer. New buyers cannot purchase PDI; compare a SPIA for income using the immediate annuity calculator, or an income rider with the income rider vs annuitization calculator.
Questions to ask your agent
- What are my contract’s Income Percentage, Income Growth Rate and current GIA, and what is the guaranteed minimum income I keep if I stop all non-lifetime withdrawals? Please put it in writing from my contract.
- Has Pruco Life raised my Defined Income Benefit charge, or notified me of an increase? The maximum is 1.50%.
- How many years of surrender charge (CDSC) remain on each purchase payment, at what percentages, and what is my free withdrawal amount?
- If you recommend an exchange, how are you paid on the new annuity? Is it a commission from the insurer, built into its pricing rather than deducted from my premium, and what percentage? Does a longer surrender term pay you more? (See how annuity commissions work.)
- What would a SPIA pay on my account value compared with my GIA, and what does a MYGA pay for the same dollars?
From my desk
When I review a Prudential Defined Income statement, I look at two numbers side by side: the account value and the Guaranteed Income Amount. The account value is what you could move today, less any CDSC. The GIA is what the contract pays for life. Their ratio tells you how much the income benefit is worth to you.
The number owners most often misread is the GIA itself. It is an annual income amount, not a balance you can withdraw. Taking a non-lifetime withdrawal reduces it by the same percentage as the account value drop, which can cost more than the dollars taken.
Against a MYGA, I compare the cost first. PDI charges about 2.62% a year combined; a MYGA quotes a net rate with no annual charge. If you do not need the lifetime income, that difference compounds every year. Model the CDSC with the annuity surrender charge calculator and growth with the annuity calculator.
Hans Goldstein, independent licensed insurance producer, CA license 4273294, NPN 20602398. Questions: 213-414-2808 or hans@hansgoldstein.com.
Frequently asked questions
Is there a Prudential Defined Income fixed indexed annuity?
No. Prudential Defined Income (PDI) is a flexible premium deferred variable annuity issued by Pruco Life Insurance Company, with a built-in lifetime income benefit (the Defined Income Benefit). The account is invested in the AST Multi-Sector Fixed Income Portfolio, so the account value can fall. It has no index caps and is not a RILA.
Is Prudential Defined Income still sold?
No. The May 1, 2026 prospectus states the annuity is no longer offered for new sales, and the Defined Income Benefit has not been available for election or re-election since January 1, 2021. Prudential lists it on its legacy products page for existing owners.
What are the fees on Prudential Defined Income?
The current insurance charge is 1.90% a year, which includes the 0.80% Defined Income Benefit charge. The AST Multi-Sector Fixed Income Portfolio expense is 0.72% per the May 1, 2026 prospectus, about 2.62% combined. An annual maintenance fee of the lesser of $50 or 2% of account value applies if purchase payments total under $100,000.
Can the Defined Income Benefit charge go up?
Yes. Pruco Life may raise the Defined Income Benefit charge on or after the 7th anniversary of the issue date, up to a maximum of 1.50% a year, with advance notice and an opportunity to opt out under conditions in the prospectus. The maximum total insurance charge is 2.60%.
What is the surrender charge on Prudential Defined Income?
A contingent deferred sales charge on each purchase payment: 7%, 7%, 6%, 6%, 5%, 5%, 5%, then 0% from year 7. Prudential states it is waived for Guaranteed Income Amount payments and RMDs.
What does Prudential Defined Income pay at death?
The greater of the account value or total purchase payments reduced for withdrawals. Death benefit protection ends at annuitization or if the account value reaches zero; with the spousal version it is paid at the death of the last surviving spouse.
Can I 1035 exchange out of Prudential Defined Income?
Generally yes. An exchange into another annuity is tax-free only if it is done as a direct exchange under IRC Section 1035. You give up the Defined Income Benefit and any growth in the Guaranteed Income Amount, and any remaining CDSC applies. Compare the income you would give up with what a fixed annuity would pay on your account value first.
My take
Prudential Defined Income is a closed bond-portfolio variable annuity with a lifetime income benefit and about 2.62% a year in combined charges. For owners taking income, the benefit is often worth keeping. For owners who will never use it, compare the account value against a MYGA or SPIA quote before paying another year of charges.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398), is not affiliated with Prudential, and does not sell variable annuities. Product details are summarized from Prudential’s published materials; your contract and prospectus control.
Own Prudential Defined Income? Get the fixed-annuity comparison
Talk to Hans Goldstein, a licensed independent insurance producer.
Send your account value and the Guaranteed Income Amount from your statement. You get a written quote of what a MYGA or SPIA would pay on the same dollars, so you can decide whether the income guarantee is worth its roughly 2.64% a year. Hans does not give advice on variable annuity subaccounts.
Send your details. Within one business day you get a written side-by-side sized to your dollar amount and term, and a 15-minute call only if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
Email only. Hans replies within one business day, and only calls if you ask him to. Privacy Policy.
Sources (checked October 4, 2026)
- Pruco Life Flexible Premium Variable Annuity Account: Prudential Defined Income (PDI) Variable Annuity prospectus, SEC Form 485BPOS filed April 20, 2026: dated May 1, 2026
- Prudential: Legacy products (advisor site), Prudential Defined Income Variable Annuity panel: checked October 4, 2026
- Prudential Financial: Ratings (financial strength ratings for Pruco Life Insurance Company): as of August 4, 2026
- Pruco Life of New Jersey: Prudential Defined Income (New York) prospectus: dated May 1, 2024
- MYGA and CD benchmark: AnnuityRateWatch carrier rate data and DepositAccounts, September 24, 2026
Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.